ARVL - Why Arrival Plunged More Than 35% Today
Shares of Luxembourg-based electric vehicle maker Arrival (NASDAQ: ARVL) plunged more than 35% today as of noon ET, following its third-quarter earnings release this morning.
The electric vehicle maker is coming on hard times, as funding has dried up in this market environment, while the company still needs more cash to fund the initial production ramp. With the stock at such a low level, management can't raise the cash it thought it could just a few months ago without severely diluting shareholders.
In response, Arrival is now cutting certain products and focusing on its highest-profit opportunities in order to extend its runway before running out of cash; however, even that new strategy comes with trade-offs, including delaying revenue into 2024.
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Why Arrival Plunged More Than 35% Today