Hyzon Motors craters after revealing operational inefficiencies and financial issues

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Hyzon Motors Inc. (NASDAQ: HYZN) disclosed in an SEC filing that it had identified operational inefficiencies at Hyzon Motors Europe BV that will have a material adverse effect on the company’s ability to produce and sell vehicles.

Additionally, the board of HYZN Directors has appointed a committee of independent members of the Board of Directors to investigate, with the assistance of independent outside counsel and other advisors, certain matters regarding the timing of revenue recognition and internal controls and procedures, mainly related to its operations in China. These matters have been brought to the attention of the Board of Directors by the management of HYZN. HYZN plans to file its quarterly report late due to the development.

Wedbush Securities downgraded its rating on Hyon Motors (HYZN) to Neutral from Outperform after the disclosures.

Analyst Dan Ives: “There are more questions than answers at this time with the myriad of issues identified in the filing which we fear will slow the growth of Hyzon (which has been progressing well over the past six months) with this black cloud now In a risky market and concerns about many electric vehicle names the last thing investors wanted to see was this news and so we’re moving away from the name until we have a better understanding of the problems to be solved.

Shares of Hyzon Motors (HYZN) fell 35.86% in premarket trading Friday at $2.88.

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