It’s a relatively quiet day on Wall Street as the S&P 500 swoons around the breakeven point and hangs around Friday’s closing price. But the same cannot be said for Arrival (NASDAQ:ARVL). ARVL stock is up more than 22% so far on the day.
At the session high, shares were up almost 31%. The stock is tacking onto Friday’s performance, in which it gained 11.7%. That said, it hasn’t been all that great of a ride for Arrival stock lately.
Despite the gains on Friday, the company received a non-compliance notice from the Nasdaq on the same day. Further, the stock hit a 52-week low on Thursday, bottoming at $1.62 a share. On the plus side, ARVL stock is up more than 44% from that mark now. At today’s high, it was up more than 54%.
Even with the large percentage bounce though, shares are still struggling badly. So far on the year, Arrival shares are down about 70%. Over the last 12 months, the stock is down 97%.
Can ARVL Stock Continue to Recover?
There are a lot of mixed signals out there about whether we are going into a recession. However, if we only looked at electric vehicle (automotive stocks as a whole — investors would think we’re in a recession right now.) stocks — and to some extent,
A number of these struggling EV names, like Rivian (NASDAQ:RIVN), Fisker (NYSE:FSR) and Nikola (NASDAQ:NKLA), have been trading better lately. Most of these names bottomed in late-April. While they have been rebounding, they’re struggling this year. The best of the trio — Fisker — is still down 10% for 2023 despite a 53% bounce off the year-to-date low.
Interestingly, this trio will report earnings tomorrow, Tuesday, May 9. ARVL stock will likely move in sympathy with these stocks too. Investors won’t have to wait long to hear from Arrival directly, with the company scheduled to report earnings on Wednesday.
That said, there are concerns. According to one report, “Britain’s Arrival SA said on Wednesday it expects to report one or more ‘material weaknesses’ in internal controls over financial reporting, marking another setback for the cash-strapped electric-vehicle startup.”
Perhaps the biggest issue? Arrival doesn’t generate any revenue — and doesn’t expect to do so until next year. Without revenue, it’s all about managing overhead and that’s where the issues now lie.
On the date of publication, Bret Kenwell 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.