MVIS - Affirmed Sell For MicroVision

2024-05-21 02:39:59 ET

Summary

• The CEO's candid disclosure of RFQ negotiations has raised eyebrows and may impact OEMs' perception of MicroVision's suitability for nominations.
• The company faces financial strain, highlighted by its low cash reserves and the need for continuous ATM sales.
• With doubts about its ability to secure nominations, concerns over product competitiveness, and a cash-intensive development process, MicroVision's stock is predicted to continue its decline.

Since I wrote about MicroVision ( MVIS ) in March 2023, the company has remained intensely focused on the consumer auto ADAS vertical. At that time, I gave MicroVision a "sell" rating due to doubts following its acquisition of the bankrupt German company Ibeo. My rationale was straightforward: Ibeo went bankrupt, abandoned by all its investors. Thus, its product could not have been high quality and worth salvaging....

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