ARVL - Why EV Start-Up Arrival's Shares Sank Today
Arrival (NASDAQ: ARVL) provided its second-quarter update Thursday, and it indicated the electric vehicle company is working as hard to stay afloat as it is to get its products into production. Investors noted that, knocking its shares down 12.4% as of 10:20 a.m. ET.
Arrival told investors it remains on track to begin production of electric vans at its facility in the U.K. in the current quarter, and said it has about $6 billion in non-binding memorandums of understanding and orders if all are completed. But that's about where the positive news ended. The company is pushing back the pace of its production ramp-up and delaying the start of production at its U.S. plant in North Carolina. Maybe most impactful for shareholders, the company plans to sell another $300 million in stock that will significantly dilute existing shareholders.
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Why EV Start-Up Arrival's Shares Sank Today