EV startup Arrival's cash and equivalents slump at end of first quarter
(Reuters) -British electric vehicle start-up Arrival SA said on Monday it had $130 million in cash and cash equivalents at the end of March, down nearly 37% from the end of December.
The company, which did not provide any details on first-quarter results in its earnings release, said it has built three vans at its Bicester factory, with five more in progress.
Arrival's U.S.-listed shares were down 2.3% at $2.16 in trading after the bell.
Earlier in April, the company said it would merge with blank-check firm Kensington Capital Acquisition Corp V.
The transaction would allow Arrival to access up to $283 million of cash "held in trust" for building its Charlotte, North Carolina factory and for developing its XL Van, Arrival said on Monday.
EV firm Canoo Inc, which also announced its first-quarter results on Monday, said it expects a 25% reduction in its annual operating expenses this year.
Canoo added that its Lifestyle Delivery Vehicle was eligible for Inflation Reduction Act's commercial tax credit of $7,500 in 2023.
Last year, Arrival also said it would restructure its business to focus on the U.S. market, seeking to capitalize on the subsidy package and a larger addressable market.
Earlier on Monday, EV maker Workhorse Group Inc reaffirmed its annual revenue forecast of between $75 million and $125 million.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shounak Dasgupta)