Electric-vehicle startup Arrival SA issued a warning about the business, saying it might not be sustainable into the end of 2023.
Reuters reported the announcement sent the company’s U.S.-listed shares down to 33.2%.
According to the report, the startup shared it has been “exploring options to tackle the fund crunch and hinted at cost-cuts that could have a sizeable impact on its workforce in the United Kingdom.”
The outlet noted the company’s shift to “right-size” comes as it begins to focus more on the larger market in the United States and incentives coming from the Inflation Reduction Act.
“We’re actively engaged in capital raising … we’ve had some preliminary discussions with a handful of parties,” Chief Financial Officer John Wozniak said during a post-earnings call, as Reuters reported.
The company reportedly declared a larger loss in the third-quarter and anticipates having enough money to fund the startup into the third quarter of 2023.
“We will use cash on hand of $330 million and look to secure new funds to achieve our goals in the United States,” Chief Executive Denis Sverdlov said.
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