ARVL - Arrival stock plunges as it expects no revenue until 2024 with insufficient cash

• Arrival ( NASDAQ: ARVL ) stock plunges more than 30% after the announcement of its Q3 results .
• The company reported a loss of $310.3M vs. $30.6M loss year ago.
• Q3 loss included non-cash impairment charges and write-offs of $232M.
• Adjusted EBITDA loss of $73.3M, compared to a loss of $45.9M year ago.
• As of September 30, 2022, the company had existing cash and cash equivalents of approximately $330M which is not sufficient to cover twelve months of operations.
• The company expects to end the fiscal year with $160M and $200M of cash and expects cash on hand to fund the business into Q3 of 2023.
• As the company is restructuring its business to develop commercial vans for the U.S. instead of Europe, says it doesn’t expect to earn revenue until after 2023.
• “This does not mean we’re writing off the U.K. and European markets,” said Mike Ableson, Arrival’s CEO of North America. “We are prioritizing the U.S. market with our current available funds, but we’ll keep an incredible team in place in the U.K. to redesign and optimize aspects about the L van for the new EU regulations.”
• The company is laying off about 700 workers or 30% of its workforce due to restructuring and most of those positions are based in the U.K.
• Last week, the company received a notice from Nasdaq warning it would be delisted if it does not manage to trade above $1 for 10 consecutive days over the next six months.
• The company’s share price reached $22 at its debut but has traded below $1 since late September and is currently changing hands at $0.39.
• Stock lost almost 98% of its value past one year.
• ARVL is at high risk of performing badly. Learn why

For further details see: