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Arrival (NASDAQ:ARVL) the stock slips on Friday following reports that the electric vehicle (EV) company is delaying some projects.
According to reports, Arrival is delaying the development of its electric cars and electric buses. Instead, the company will continue to focus its time on making electric vans.
Why exactly is the ARVL pushing back the production of electric cars and buses? Insiders claim that the company does not have the revenue to further develop these products. To combat this, he will focus on electric vans to generate revenue and grow his business.
While these EV products are delayed, that doesn’t mean Arrival is abandoning them altogether. Sources say the electric car project could be ‘revived’ if the company starts generating enough revenue from its electric vans, for example. Reuters.
It should be noted that Arrival’s alleged decision to focus on electric vans comes after news from the United States Postal Service (USPS) last month. The USPS is looking to further electrify its delivery fleet, which would require more electric vans.
This is something investors in ARVL stocks will want to keep in mind. After all, the company already has an agreement to supply United Parcel Service (NYSE:UPS) with electric vans. Although Arrival has not been named a supplier of new electric vehicles for the USPS, it is a likely candidate.
ARVL stock is down 4% since Friday afternoon.
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As of the date of publication, William White has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
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