Cenntro Electric (NASDAQ:CENN) stock fell 15% on Dec. 19 as it prepared to launch its Logistar electric van at the Consumer Electronics Show (CES) on Jan. 5.
The Logistar 300 can be configured as a van or truck and has a range of 273 miles with a top speed of 75 mph. It is being marketed as a delivery vehicle. One version includes an independent refrigerator.
CENN stock opened this morning at about 31 cents per share. It has failed to trade over $1/share for over two months. At the start of 2022, it sold for about $4/share. The company’s market capitalization is about $80 million.
The Cenntro Story
Cenntro said it sold 307 trucks in the first half of the year, bringing in $5 million. But it had a net loss of $23.7 million. At the end of June, it reported $183 million of cash and a negative operating cash flow of $28.5 million over six months.
Cenntro came public in 2021 by acquiring Naked Brands Group, an Australian maker of intimate apparel. The deal acted like a SPAC, with Naked Brands as the shell. CEO Peter Z. Wang is a serial entrepreneur with extensive experience in China.
The company is based in New Jersey but has a battery factory in Mexico. It is building a production facility outside Jacksonville, Florida.
Wang says Cenntro vehicles are designed for the European market. The company says it will have six distribution centers in the Caribbean, Africa, and Europe, starting with Germany.
CENN Stock: What Happens Next?
Investors have grown skeptical of electric vehicle plays, and Cenntro’s under-the-radar story does not generate much confidence.
If it can fulfill its promises, however, Cenntro won’t remain a penny stock. Trouble is, that’s a big if.
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On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.