Electric Van Maker Arrival On The Brink Of Bankruptcy, Holding Discussions With EY: Report
Portfolio Pulse from Anan Ashraf
Electric vehicle manufacturer Arrival SA (NASDAQ:ARVL) is reportedly close to bankruptcy and in talks with EY for potential administration. The company's shares have dropped nearly 96% over the past year. Arrival ended the first half of 2023 with $43 million in cash and a loss of $155.7 million. The company's market cap is now around $21 million, down from a valuation of $5.4 billion at its public debut in March 2021 through a SPAC merger. Shares closed at $0.92, down nearly 20% on Monday.
January 23, 2024 | 4:48 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Arrival SA is on the verge of bankruptcy with a significant share price decline. The company is in discussions with EY for administration services and has a dwindling market cap of $21 million.
The news of potential bankruptcy and the involvement of EY for administration services indicate severe financial distress for Arrival SA. This situation is likely to further erode investor confidence and could lead to a continued decline in the stock price in the short term. The high relevance and importance are due to the direct impact on the company's financial stability and the significant drop in share price. The confidence level is not at the maximum because the company is still in discussions and has not yet declared bankruptcy.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100