Why Microvast's Stock Is Trading Lower Today

Microvast Holdings Ord Shs MVST shares are trading lower by 8% at $9.52 Tuesday morning after the company reported second-quarter earnings results and issued FY21 sales guidance. Microvast reported $33.37 million in sales this quarter, representing a 53.8% increase over sales of $21.70 million in the same period last year.

"Our plans to add a total of 4 GWh of high-volume manufacturing capacity in our Clarksville, Tennessee and Huzhou, China facilities are moving forward," said Shane Smith, Microvast's Chief Operating Officer.

"As a result of the delay in the closing of our business combination with Tuscan, we expect the new capacity to be online in early 2023. This timeline aligns with the updated production schedules and forecast requirements from our key customers as they also work to overcome industry-wide supply chain and logistics challenges. The demand for vehicle electrification and energy storage remains high as our customers and governments around the globe continue to emphasize the importance of clean energy. We are excited about our future opportunities," Smith stated.

Microvast designs, develops and manufactures lithium-ion battery solutions. It is renowned for its cutting-edge cell technology and its vertical integration capabilities which extend from core battery chemistry (cathode, anode, electrolyte and separator) to battery packs.

Microvast has a 52-week high of $25.20 and a 52-week low of $7.83.