WKHS - NWTN Inc.: The Perfect Fundamental Short

2024-05-02 19:09:56 ET

Summary

• NWTN, an electric vehicle company based in Dubai, is overvalued with a market cap of $1.9B despite nominal revenues and significant losses.
• NWTN is burning through its cash and has a toxic PIPE financing agreement in my opinion, raising concerns about its financial stability.
• NWTN has all the makings of a perfect fundamental short: extremely overvalued, nominal revenues, huge losses, and low short interest.

NWTN Inc. ( NWTN ) is an aspiring electric vehicle [EV] company headquartered in Dubai, UAE. NWTN is extremely overvalued with a market cap of $1.9B based on current B share price of $6.60, latest reported revenues of only $583k, and a net annual loss of -$100M.

NWTN was formed in 2022 in a de-SPAC transaction that merged East Stone Acquisition Corp. with ICONIQ Holding Limited, which valued this new public entity at $2.5B. The company describes itself as a provider of passenger-centric mobility and green energy solutions in the United States, the United Arab Emirates, and Mainland China....

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