2023-05-25 08:45:33 ET
British electric van maker Arrival ( NASDAQ: ARVL ) is pushing ahead with a narrower plan to produce just one vehicle in the near term. The electric van will be produced in the U.S. as Arrival ( ARVL ) winds down operations in the U.K.
Notably, the larger Class 4 delivery van will feature a $40K Inflation Reduction Act subsidy for customers, which is far above the $7.5K for smaller electric vans.
During the company's last earnings call, Chief Financial Officer John Wozniak pointed to tailwinds for Arrival ( ARVL ), including the recent California regulation requiring commercial fleets to transition to electric over the next ten years. If Arrival ( ARVL ) can get past the near-term obstacles, UPS ( UPS ) is still waiting in the wings as a potential large corporate electric van customer.
With its Q1 earnings report , Arrival ( ARVL ) was light on details, but did disclose a cash position of $130M at the end of the quarter to mark a 37% drop from the prior quarter. The change in cash of $75M included a $25M receipt from Antara and use of cash of approximately $60M for restructuring-related costs and legacy supplier payments.
Shares of Arrival ( ARVL ) gained 2.72% in premarket trading to $3.75 vs. the 52-week trading range of $1.62 to $96.00.
More on Arrival:
- Arrival's Second De-SPAC Could End Up Like The First One
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- Seeking Alpha's Quant Rating for Arrival
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Arrival narrows focus as it looks to be an electric van player