Shares of the Hyzon Motors Inc. (HYZN) stock were gloomy in the premarket trading session today on January 12, 2022. HYZN stock price saw a downtrend of 14.10% to drop at $5.85 a share at the time of this writing. The stock was green in the previous trading session and went up by 8.86% at closing. Let’s understand the reason behind this fall.
What’s Happening?
HYZN stock became bearish after Hyzon Motors provided the financial outlook and 2021 delivery update. The company has delivered 87 fuel cell-powered heavy-duty vehicles in the year 2021 under the commercial sales agreement. Trial leases are not part of these deliveries.
The estimated shipments in 2021 were 85, which means the shipments exceeded the expectations in 2021. However, the company is expecting lower than forecasted revenues and margins in the upcoming financial results. Lower revenues and margins are due to the lower average selling price per vehicle. the company anticipates that the product mix and multi-year revenue recognition for most of the sales will lead to lower revenues and margins. In the third quarter of 2021, the deployment focus of the company was Asia, where the average selling prices were less than the other regions. Shareholders of the HYZN stock after hearing this news responded negatively which resulted in the decline in the per-share price of this stock.
Previous News of HYZN stock
On December 21, 2021, -Bragar Eagel & Squire, P.C. announced that it has started investigations against Hyzon on the behalf of long-term shareholders of HYZN stock. The investigations concerned the potential claims of breaching fiduciary duties against Hyzon motors and its board of directors. The class action complaint alleged the defendants for misleading statements and hiding the facts about the company’s operations, business and prospects.
Contract with Geesinknorba Group
On December 16, 2021, HYZN announced that it has signed the agreement with Geesinknorba. According to the agreement, Hyzon is now the exclusive vendor for the zero-emission trucks of Geesinknorba. Within the duration of three years, 300 or more trucks will be supplied to Europe by Hyzon under this contract. This partnership is beneficial for the growth of both companies as both are on a mission to improve the global environmental impact of waste collection.
Wrap Up
The news of a low financial outlook for the upcoming financial results caused the decline in the per-share price of the HYZN stock. In order to understand future growth, investors need to do technical and fundamental analysis for better intuition.
