Arrival (ARVL) stock plummeted 20.24% in the after-hours trading session at the price of $14.19 after announcing its financial results for the three months ended on 30th September 2021.
ARVL is on a mission to make the air clean by substituting all vehicles with economical electric solutions. These products provide zero-emission, high sustainability, and high equitability to drive the transition towards EVs globally.
ARVL Third Quarter 2021 Financial Results
On 8th November 2021, ARVL announced its earnings report for the third quarter ended 30th September 2021 and presented a 2022 outlook.
Financial Highlights
ARVL reported a loss of €26 million for the third quarter ended 30th September 2021. Total loss was €22 million for the same quarter of the previous year. For the third quarter of 2021, adjusted EBITDA loss totaled €40 million. Adjusted EBITDA loss was €18 million in the third quarter ended 30th September 2020. As of 30th September 2020, cash and cash equivalents were approximately €381 million.
For the quarter ending 30th September 2021, capital expenses were €81 million. Capital expenditures were €21 million in the third quarter of the prior year. ARVL reported administrative expenses of roughly €38 million for the three months ended 30th September 2021. For the third quarter of 2020, administrative costs were €20 million. Research and development expenses totaled €9 million for the third quarter of 2021. For the third quarter of 2020, R&D costs were approximately €1 million.
Management Comments
Chief executive officer of ARVL, Denis Sverdlov, remarked that Arrival is unique. The company is remodeling the market through its new system at a time the world wants it most. They invest in enabling technologies and programs that allow them to own the end-to-end ecosystem. They are excited to install the first two Microfactories during the quarter in the UK and US that are ready for launch.
In the following years, ARVL expects to be rapidly scaling Microfactories as it is raising capacity to fit the growing demand for vehicles. Arrival is currently producing five platforms – Car, Van, Large Van, Bus, and Bus for Emerging Markets. They are ambitious to build 10s of vehicle platforms and 100s of Microfactories, concluded Mr. Sverdlov.
