Why Arrival Stock Sank Friday
Arrival (NASDAQ: ARVL) is one of many fledgling electric vehicle (EV) companies that merged with a blank check company to raise funds and go public in 2021. The company has aspirations to supply zero-emission electric buses to municipalities and commercial vans to businesses. But with its first commercial sales still ahead of it, investors are shunning Arrival along with other prerevenue companies in the EV space. The sell-off in Arrival stock is continuing today, with shares down 12.4% as of 1:56 p.m. ET.
There's no specific news from the company today. But shares began selling off well before today, experiencing a drop of 70% over the past three months. Investor negativity accelerated when Arrival said it had underestimated its capital requirements and scaled back its growth trajectory. While it has provided some progress updates recently, this type of EV start-up is at the heart of the ongoing tech sell-off in the market, which helps explain today's outsize drop.
Image source: Arrival.
Source Fool.com
