Arrival, the U.K.-based commercial EV startup turned publicly traded company, has lowered its delivery plans from 400 vehicles to 20 as it delays the development of its battery-electric buses.
The company reported widening losses for the second quarter and said it wouldn't be generating revenue in the future.
The mode where we have two products, two shifts and two micro factories is changing to one factory, one shift and one product. The chance to switch gives us a better chance to succeed.
The Financial Times reported last week that the company was shelving its electric bus and electric vehicle. The first prototype of its electric vehicle for ride-sharing was revealed in May 2022.
Arrival had a loss of $88.6 million in the second quarter, compared with a loss of $56.2 million in the second quarter of 2020. The adjusted earnings before interest, taxes, depreciation and amortization loss was $76.2 million, compared with a $41.2 million loss last year.
The company went public in March of 2021. The company is planning to open a factory in Charlotte, North Carolina, next year.
Arrival had originally planned to deliver between 400 and 600 vehicles.
We wanted to push the volumes for the end of the year. It was decided that it was better for us to spend cash, be careful and focus on delivering first vehicles in perfect condition to our customers, and then scale from that point.
In an effort to protect the business from a challenging economic environment while meeting its production targets, Arrival signaled last month that it would be cutting as much as 30% of its workforce. The company said at the time that the plan was designed to allow them to meet their targets using the $500 million of cash on hand.
Arrival had $513 million of cash and cash equivalents at the end of the second quarter. A $300 million at-the- market offering is being planned by the company.
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