- The company amends long-term technology development agreement with key customer Audi, a subsidiary of leading German automaker Volkswagen Group.
- Audi foregoes certain exclusivity provisions regarding a high-power stack developed by Ballard Power on behalf of Audi, likely in exchange for reduced contractual commitments.
- Revenues derived from Audi already down by more than 50% sequentially in Q2, causing management to lower full-year expectations for the company's Technology Solution segment.
- Chinese joint venture contribution unlikely to grow at the level required to come even close to current consensus expectations for 30%+ year-over-year growth.
- Expect management to reset expectations early next year. A short position could yield decent results.
For further details see:
Ballard Power: FY2021 Expectations Increasingly Unrealistic After Audi Contract Amendment - Get Short