Microvast reported Q2 2024 revenue of $83.7 million, up 12% year-over-year, with gross margin expanding to 32.5% from 15.3%. Sales volume increased to 301.7 MWh from 270.2 MWh in Q2 2023, driven by strong growth in European markets which accounted for 55% of total revenue. The company recorded a net loss of $78.4 million, largely due to a $64.9 million impairment charge on its Tennessee facility.The company announced a strategic shift to produce LFP batteries instead of NMC cells at its Tennessee plant, which has been temporarily paused pending additional funding. To improve liquidity, Microvast secured a $25 million convertible loan from CEO Yang Wu, with $12 million received in May and $13 million in July 2024. The company also reduced its U.S. workforce by 82% to lower operating expenses.As of June 30, 2024, Microvast...Show More

Microvast reported Q2 2024 revenue of $83.7 million, up 12% year-over-year, with gross margin expanding to 32.5% from 15.3%. Sales volume increased to 301.7 MWh from 270.2 MWh in Q2 2023, driven by strong growth in European markets which accounted for 55% of total revenue. The company recorded a net loss of $78.4 million, largely due to a $64.9 million impairment charge on its Tennessee facility.The company announced a strategic shift to produce LFP batteries instead of NMC cells at its Tennessee plant, which has been temporarily paused pending additional funding. To improve liquidity, Microvast secured a $25 million convertible loan from CEO Yang Wu, with $12 million received in May and $13 million in July 2024. The company also reduced its U.S. workforce by 82% to lower operating expenses.As of June 30, 2024, Microvast had cash and equivalents of $68.2 million and an order backlog of $278.6 million. However, management expressed substantial doubt about the company's ability to continue as a going concern, citing insufficient funds to meet capital expenditure needs and operating requirements over the next twelve months. The company is pursuing additional financing options and strategic alternatives to enhance liquidity.