Today isn’t a great day for Hyzon Motors (NASDAQ:HYZN) and its stakeholders. The company issued a press release stating it will not issue its quarterly financial data by the previously established deadline. Making matters worse, Hyzon Motors admitted its European joint venture has “operational inefficiencies.” As a result, HYZN stock gapped down nearly 40% this morning.
Based in New York, Hyzon Motors develops zero-emissions, hydrogen-powered commercial vehicles. It isn’t usually on traders’ radars, as it’s one of the lesser-known electric vehicle (EV) makers with a public listing.
For better or for worse, however, the company is getting plenty of attention today. A fresh press release states that Hyzon Motors won’t issue its second-quarter 2022 financial results by the expected Aug. 15 deadline. The company cited “revenue recognition timing issues in China” in making this decision.
Hyzon followed this disclosure with: “A board-appointed special committee, working with external advisors, is conducting an independent investigation to address these and other governance and compliance issues.” Apparently, though, this wasn’t enough to quell financial traders’ concerns today.
What’s Happening with HYZN Stock?
Upon the ringing of today’s opening bell, HYZN stock was already down by approximately 40%. Even at 10:30 a.m. Eastern, the shares were still in the red by around 35% and below the key $3 level.
This might seem like an overreaction to a missed earnings-release deadline. However, there’s more news to report. Apparently, the company “has identified operational inefficiencies” at Hyzon Motors Europe B.V., which is its European joint venture with Holthausen.
In the press release, the company didn’t provide much detail on the nature and extent of these operational inefficiencies. Sometimes, offering less detail on a challenging situation can make investors even more nervous.
To add more fuel to the fire, Hyzon Motors stated that its “financial statements and guidance previously issued by the company can no longer be relied upon.” That’s not likely to inspire confidence in Hyzon’s shareholders. Hence, HYZN stock is deep in the red today.
The stockholders will definitely want to keep an eye out for further clarity on Hyzon Motors’ operational issues. For now, however, it’s definitely rough going for loyal investors in HYZN stock.
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On the date of publication, David Moadel did not have (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.