ENVX - Enovix -35% after special presentation discloses production delays

Enovix ( NASDAQ: ENVX ) -35.6% pre-market Wednesday after Executive Chairman T.J. Rodgers said at a special presentation yesterday that the company expects Fab-1 improvement activities will extend into 2023, but at a slower rate given the decision to redirect resources to Gen2.

The electronic components maker expects to exit 2023 at a run rate of under 1M battery cells produced from the Gen1 equipment in Fab-1, Rodgers said.

J.P. Morgan analyst Bill Peterson, who rates Enovix ( ENVX ) at Overweight, said he was surprised by the company's expectation of further delays in the Gen2 production ramp.

However, noting Enovix ( ENVX ) just last week announced a new CEO and has a relatively new COO, Peterson said the executive management team "prudently feels compelled to get the production strategy 100% flushed out rather than meet an arbitrary production timeline with potentially less productive manufacturing lines."

Enovix's ( ENVX ) "'big picture' vision of becoming a dominant player in the battery industry (especially in the wearables space) could be feasible assuming disciplined execution to meet burgeoning demand for a competitive technology."

Enovix ( ENVX ) "clearly has the cash to meet its production goals and has a perfect track record for meeting its IPO milestones," TJ Roberts writes in an analysis posted recently on Seeking Alpha .

For further details see: