- Since going public a year ago, Arrival's market cap fell by 90%. Although market dynamics were adverse for all high-growth small caps, Arrival had its own reasons for the decline.
- I believe that “minor” production delays hide serious production issues, warranting a look at the nuts and bolts of recent business performance and pipeline execution.
- The business model promised a short buyback period. However, Arrival has raised significant external funding and will need further raises to support growth.
- The valuation discount is explained by uncertainty regarding the production launch and further share dilution. Steer clear of the stock until the first vans are entirely built at a microfactory.
For further details see:
Avoid Arrival - Management Needs To Show Some Execution