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Weak Earnings, Liquidity Issues Hit Proterra Like an Electric Bus

Proterra (NASDAQ:PTRA), the electric bus maker, revealed two major problems in just the last few hours that sent its stock down over 50% in Thursday afternoon trading.

Proterra’s earnings report was a litany of misses. First, it posted an EPS loss of $0.50, where analysts expected a loss of just $0.25. Revenue came in at $79.99 million, which may have been enough to beat last year’s figure—by 16.9%—but it didn’t beat projections looking for $86.88 million. It’s somewhat understandable; Proterra built a new factory in that time. However, with analysts looking for $533.82 million in 2023, and Proterra itself expecting between $450 million and $500 million, that’s not a positive end result.

Worse, however, was Proterra’s alert via CEO Gareth Joyce, who noted: “When we file our 2022 10-K, it will include management’s and our auditor’s conclusion that there is substantial doubt about our ability to continue as a going concern.” While Joyce believes that an accord can be reached with its lenders, it’s going to have to hurry. Without such a solution, Proterra will have $170 million in loan notes come due, and that will cripple the firm.

That catastrophic outlook is likely why insider sentiment at Proterra has turned Negative. Worse, substantial sales have already taken place; insiders sold $114,300 worth of Proterra stock in the last three months alone. That suggests that the people best placed to know about the company’s future are looking for the exits.


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