Cepton shares are trading lower after the company announced it was informed by its tier 1 partner, Koito, that the OEM that awarded Koito the series production award has decided to re-scope its ADAS product offerings and, as a result, all outstanding purchase orders from Koito to the company that relate to the series production award have been cancelled.
Portfolio Pulse from Benzinga Newsdesk
Cepton's stock is trading lower following the announcement that its tier 1 partner, Koito, has had all outstanding purchase orders related to a series production award cancelled by the OEM, which is re-scoping its ADAS offerings.
December 14, 2023 | 6:39 pm
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Cepton's shares are expected to face negative pressure in the short term due to the cancellation of all outstanding purchase orders from Koito related to a series production award.
The cancellation of purchase orders from Koito, a tier 1 partner, is a significant negative development for Cepton. It suggests a potential loss of revenue and a setback in their product deployment in the automotive market, which could lead to a decline in investor confidence and a decrease in stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100