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Today is not a great day for Hyzon Motors (NASDAQ:HYZN) and its stakeholders. The company issued a press release indicating that it will not release its quarterly financial data before the previously established deadline. Worse still, Hyzon Motors admitted that its European joint venture had “operational inefficiencies”. As a result, HYZN stock lost almost 40% this morning.
New York-based Hyzon Motors develops zero-emission hydrogen utility vehicles. It’s not usually on traders’ radars, as it’s one of the lesser-known electric vehicle (EV) makers with a public listing.
For better or for worse, however, the company is getting a lot of attention today. A new press release indicates that Hyzon Motors will not release its second quarter 2022 financial results before the scheduled August 15 deadline. The company cited “income recognition timing issues in China” in making the decision.
Hyzon followed up that disclosure with, “A special board-appointed committee, working with outside advisors, is conducting an independent investigation to resolve these and other governance and compliance issues.” Apparently, however, that wasn’t enough to allay the concerns of financial traders today.
What’s going on with HYZN Stock?
As the opening bell rang today, HYZN stock was already down around 40%. Even as of 10:30 a.m. EST, stocks were still in the red by around 35% and below the key $3 level.
This may seem like an overreaction to a missed results release deadline. However, there is more news to report. Apparently the company “has identified operational inefficiencies” at Hyzon Motors Europe BV, which is its European joint venture with Holthausen.
In the press release, the company did not provide many details about the nature and extent of these operational inefficiencies. Sometimes offering less detail about a difficult situation can make investors even more nervous.
To add fuel to the fire, Hyzon Motors said its “financial statements and guidance previously released by the company are no longer reliable.” This should not inspire confidence in Hyzon shareholders. Therefore, HYZN stock is deep in the red today.
Shareholders will certainly want to keep an eye on Hyzon Motors’ operational issues. For now, however, it is definitely difficult for loyal investors in HYZN shares.
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As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.