Overview
- Microvast reported revenue of $60.6 million versus roughly $99 million expected, posted a loss of 4 cents per share, and said adjusted EBITDA turned negative at $5.5 million as the stock fell in extended trading.
- An SEC filing said the revenue drop and operating loss raise substantial doubt the company can keep operating, despite $174 million in cash that is harder to use because China limits money transfers out of the country.
- The sales mix shifted sharply, with Europe at $43.2 million down 28%, Asia-Pacific at $17.1 million down 66%, and U.S. revenue near $234,000 after prior sales were pulled into 2025 due to tariff uncertainty.
- Management blamed regulatory and geopolitical pressure in India and South Korea, a move by buyers in India to lower-cost products, and delays in customer platform ramp-ups.
- Leaders projected a near-term rebound with Q2 revenue of $103.2 million and Q3 of $135.6 million, showcased a new KAF electric powertrain and 290Ah LFP battery packs, and advanced the Huzhou 3.2 buildout for about 2 GWh of added capacity.