Microvast downgraded at Janney Montgomery Scott amid financing challenges

Janney Montgomery Scott downgraded Microvast to Neutral from Buy with a price target of $3, down from $11, in light of the ongoing financing challenges. Microvast announced that it has delayed the start of production of Clarksville, Tennessee indefinitely as the company tries to complete financing and won’t generate volumes or 45x credits from Clarksville in 2024, the analyst tells investors in a research note. The company is in discussions with a lender for up to $180M in financing, including $150M proposed term loan and $30M working-capital facility, and expects Clarksville to take 6-8 months to complete once funding has been secured, and the company is evaluating strategic alternatives outside of Clarksville funding, the firm says.