Arrival (NASDAQ:ARVL) stock is slipping on Friday following reports that the electric vehicle (EV) company is delaying certain projects.
According to reports, Arrival is pushing back the development of its electric cars and electric buses. Instead, the company will continue to focus its time on manufacturing electric vans.
Why exactly is ARVL pushing back the production of electric cars and buses? Insiders claim that the company lacks the revenue needed to further develop these products. To combat that, it will focus on electric vans to generate revenue and grow the business.
Although these EV products are delayed, that doesn’t mean Arrival is giving up on them completely. Sources claim that the electric car project could be “revived” if the company starts generating enough revenue from its electric vans, per Reuters.
It’s worth noting that Arrival’s alleged decision to switch focus on electric vans comes after United States Postal Service (USPS) news last month. The USPS is seeking to further electrify its delivery fleet, which would require more electric vans.
That’s something ARVL stock investors will want to keep in mind. After all, the company already has a deal to supply United Parcel Service (NYSE:UPS) with electric vans. While Arrival hasn’t been named as the supplier of new EVs for the USPS, it’s a likely candidate.
ARVL stock is down 4% as of Friday afternoon.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.