HYZN - Hyzon Motors craters after disclosing operational inefficiencies financial issues

Hyzon Motors Inc. ( NASDAQ: HYZN ) disclosed in a SEC filing that it identified operational inefficiencies at Hyzon Motors Europe B.V., which will have a material adverse effect on the company's ability to produce and sell vehicles.

In addition, HYZN's board of Directors appointed a committee of independent board members to investigate, with the assistance of independent outside counsel and other advisors, certain issues regarding revenue recognition timing and internal controls and procedures, primarily pertaining to its China operations. Those issues were brought to the attention of the board by HYZN management. HYZN plans to file its quarterly report late due to the development.

Wedbush Securities dropped its rating on Hyon Motors ( HYZN ) to Neutral from Outperform after the disclosures.

Analyst Dan Ives: "There are more questions than answers at the moment with the myriad of issues identified in the filing that we fear could slow down the growth story of Hyzon (that was actually progressing well the last six months) with this black cloud now over the story. In a risk-off market and worries about many EV names, the last thing investors wanted to see was this news and thus we move to the sidelines on the name until we have a better grasp of the issues at hand."

Shares of Hyzon Motors ( HYZN ) fell 35.86% in premarket trading on Friday to $2.88.

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