The high-cost of trying to develop and produce vehicles, a business pivot and three restructurings has taken a toll on commercial EV maker Arrival. And it doesn’t look like it’s going to get any easier for the company.
Arrival, which went public in 2021 via a merger with a special purpose acquisition company, posted preliminary fourth-quarter and full-year earnings report Thursday. The gist? Arrival is burning through cash and is on the hunt for more.
Curiously, Arrival has pushed its earnings call and “business update” to March 13. (Public companies traditionally hold a call with investors and analysts the same day they report earnings.) These extra few days will allow the “company to potentially finalize a transaction which, if consummated, would provide additional liquidity and further extend its runway.”
Arrival didn’t disclose any details about the transaction and it’s unclear if the company is selling assets, raising funds or both.
The EV maker also issued a range for its quarterly and full-year losses, another odd move that suggests the company hasn’t finalized its accounting. The range doesn’t soften the news. Arrival is a sieve.
The company has yet to generate any revenue and doesn’t expect to until 2024. Which means its results are all about expenses.
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