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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income Before Income Tax, Domestic and Foreign | Loss before taxes is comprised as follows:
| December 31, 2025 |  | December 31, 2024 |  | December 31, 2023
Domestic (Israel) | $ | (32,706) |  |  | $ | (113,276) |  |  | $ | (107,889) |
Foreign | (25,093) |  |  | 3,585 |  |  | (7,679) |
Total | $ | (57,799) |  |  | $ | (109,691) |  |  | $ | (115,568) |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the significant components of the Company’s deferred tax assets and liabilities:
| December 31, 2025 |  | December 31, 2024
Deferred tax assets: |  |  |
Operating loss carryforward | $ | 106,161 |  |  | $ | 73,665 |
Share based compensation | 94,764 |  |  | 94,527 |
Research and development | 15,038 |  |  | 15,449 |
Accrued social benefits and other | 471 |  |  | 559 |
Other costs | 1,067 |  |  | 442 |
Operating lease liability | 2,992 |  |  | 4,085 |
Property and equipment, net | 1,819 |  |  | — |
Deferred tax asset before valuation allowance | $ | 222,312 |  |  | $ | 188,727 |
Valuation allowance | (219,013) |  |  | (182,851) |
Total deferred tax assets | $ | 3,299 |  |  | $ | 5,876 |
Property and equipment, net | (26) |  |  | (2,923) |
Operating lease right-of-use asset | (3,273) |  |  | (4,735) |
Deferred tax liabilities | $ | (3,299) |  |  | $ | (7,658) |
Net deferred taxes | $ | — |  |  | $ | (1,782) |
Schedule of Valuation Allowance | The net changes in the total valuation allowance for each of the years ended December 31, 2025 and 2024, are comprised as follows:
| December 31, 2025 |  | December 31, 2024
Opening balance | $ | 182,851 |  |  | $ | 164,848 |
Additions during the year | 36,162 |  |  | 18,003 |
Ending balance | $ | 219,013 |  |  | $ | 182,851 |
Schedule of Components of Income Tax Expense (Benefit) | Taxes on income (tax benefit) are comprised as follows:
| December 31, 2025 |  | December 31, 2024 |  | December 31, 2023
Current | $ | (210) |  |  | $ | (330) |  |  | $ | (749) |
Deferred | (1,782) |  |  | 2,393 |  |  | (611) |
| $ | (1,992) |  |  | $ | 2,063 |  |  | $ | (1,360) |
| December 31, 2025 |  | December 31, 2024 |  | December 31, 2023
Domestic | $ | 57 |  |  | $ | 84 |  |  | $ | 92 |
Foreign | (2,049) |  |  | 1,979 |  |  | (1,452) |
| $ | (1,992) |  |  | $ | 2,063 |  |  | $ | (1,360) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows:
| December 31, 2025 |  | December 31, 2024
Opening balance | $ | — |  |  | $ | 685 |
Tax positions reversed in current year related to previous years | — |  |  | (685) |
Tax positions taken in current year | — |  |  | — |
Accrued interest | — |  |  | — |
Ending Balance | $ | — |  |  | $ | — |
Schedule of Reconciliation of Income Taxes | The reconciliation of the amount that would result from applying the Company’s statutory tax rate in Israel to net loss before income tax to the reported amount of taxes on income (tax benefit) is as follows:
| Year ended December 31, 2025
| Amount |  | Percent
Tax at Israeli statutory rate | (13,294) |  |  | 23 | %
Foreign Tax Effects |  |  |
UK |  |  |
Change in valuation allowance | 3,945 |  |  | (7) | %
Other | (421) |  |  | 1 | %
US |  |  |
Change in valuation allowance | 828 |  |  | (1) | %
Other | 82 |  |  | 0 | %
Other foreign jurisdictions | 1 |  |  | 0 | %
Change in valuation allowance | 18,184 |  |  | (31) | %
Non taxable or non deductible items |  |  |
Share-based payment awards | 1,107 |  |  | (2) | %
Warrants and derivatives remeasurements | (11,978) |  |  | 21 | %
Other | 277 |  |  | 0 | %
Tax credit |  |  |
R&D Tax Credit | (592) |  |  | 1 | %
Other Adjustments | (131) |  |  | 0 | %
Effective tax rate | $ | (1,992) |  |  | 3 | %
Schedule of Income Taxes Paid |
| Year ended December 31, 2025
Domestic (Israel) | $ | 62 |
Foreign | 17 |
Tax paid during the year for taxes on income | $ | 79 |
Schedule of Operating Loss Carryforwards | As of December 31, 2025, the Company and its subsidiaries had net operating carry forward losses for tax purposes which may be carried forward and offset against taxable income in the future for an indefinite period.
Name of Subsidiary | Net Operating Loss Carryforwards
REE Automotive Ltd | $ | 460,005 |
REE Automotive UK Limited | $ | 643 |
REE Automotive USA Inc. | $ | 864 |
REE Automotive Japan K.K. | $ | 84 |

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