The company's electric vehicle platform features independent interchangeable corner modules, dubbed REECorners.

The corner modules are positioned directly adjacent to each wheel, and they encapsulate all of the vehicle's drive systems such as the motor, inverter, steering, brakes, and suspension.

[8] In 2014 SoftWheel raised three million dollars in an effort to enter the electric bicycle market with its in-wheel selective suspension system, which is stiff while riding on level surfaces, and becomes shock-absorbent upon impacts.

[11] Faced with its investors potentially pulling funding and shutting down the company, SoftWheel began developing in-wheel shock absorbers for bicycles, motorcycles, and automobiles.

[14][15] Daniel Barel announced the company's new name, REE, at the EcoMotion convention in June 2019, where he unveiled an automotive platform for autonomous delivery vehicles.

The name-change signifies "reinventing" the car by discarding the mechanical connections between the wheels in favor of electronic by-wire control.

[18] The CEO said that while vertical automotive companies require 20 billion dollars or more to develop their supply chain and manufacturing capabilities, the company is set to achieve serial manufacturing and commercialization of its first product line through its horizontal business alliances using its $300 million in cash.

[19] Following the merger, REE Automotive's valuation dropped significantly, reaching a low of about $40 million in September 2024.

[21] The company expected in May 2023 that its cash runway will finance its operations past its test fleet deliveries and into the scaling-up of its business.

[23] The company revised its production plans in 2024, choosing to utilize the contract manufacturing services of Roush Industries and the supply-chain services of Samvardhana Motherson, reducing its cash burn rate while pushing the start of production to the fourth quarter of 2024[24] and the start of customer deliveries of scale-produced vehicles to the first half of 2025.

[26] Motherson invested $45 million in REE Automotive which the company intends to use as working capital for full-scale production in 2025.

[5] REE Automotive is structured for a capex-light business model with horizontal alliances with tier-one manufacturers.

The modules are controlled by-wire, eliminating the use of mechanical connections that are traditionally housed throughout the chassis, like a steering column, drive-train, and so on.

This design allows for a flat platform chassis with more space for passengers or cargo, and easy replacement of each module.

[35] Following its fundraising shortfall, the company focused on developing and bringing a single product line to market,[19] based on the P7 corner module for up to 8.9 tonnes gross vehicle weight.

Each P7 corner module houses the following: a wheel-end drive unit co-developed with American Axle consisting of an electric motor with regenerative braking, a transmission, and an inverter; steering actuators developed by Trio; double wishbone suspension with twin dampers; brakes and braking actuators co-developed with Brembo; sensors; and an electronic control unit (ECU) based on Infineon AURIX running REE Automotive software that manages all the systems.

[48] Morgan Olson demonstrated its Proxima delivery van in July 2022, a class 5 truck powered by the P7 modules and platform.

[30] Each facility is designed to initially produce corner modules for up to 10,000 vehicles a year with a single daily work shift.