Cyngn Inc. (NASDAQ:CYN), a manufacturer of AI-powered self-driving machines, hasn’t just seen its stock drop – it’s been nearly wiped out. Over the past year, CYN shares have lost a massive 99% of their value.
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Now, to avoid getting kicked off the Nasdaq, the company has implemented a massive 1-for-500 reverse stock split. That means every 500 shares have been combined into one, pushing up the stock price on paper alone.
A reverse stock split is often seen as a red flag because it artificially inflates the share price without improving the company’s fundamentals. Unsurprisingly, CYN shares have tumbled another 45% since the reverse split, as investors saw little reason to stick around.
So, is this the end of the road – literally? Or is there a chance for a turnaround? Let’s take a closer look.
Latest Technological Breakthroughs
Cyngn has made some noise with its DriveMod system, which uses NVIDIA’s (NASDAQ:NVDA) advanced computing to power autonomous industrial vehicles. This creation has caught the eye of investors, especially with real-world applications like self-driving forklifts and tuggers. A significant milestone was the partnership with Arauco, which ordered 100 DriveMod Forklifts, showcasing the practical value of Cyngn’s technology.
Financial Challenges and Fundraising
Despite its tech success, Cyngn has been facing financial hurdles. As highlighted above, over the past year, its stock price plummeted by 99%, and the threat of delisting became genuine. However, in early 2025, Cyngn secured $33 million in funding, which was crucial for expanding production and commercial deployment. This financial boost is key to keeping Cyngn’s growth plans on track.
What’s Next for Cyngn?
With new funding, strong partnerships, and innovative technology, Cyngn is destined to solidify its place in the autonomous vehicle industry. While challenges remain, the company’s recent actions indicate a focus on long-term growth. With all that in mind, all eyes will be on the company when it discloses its earnings report on March 19 to better understand Cyngn’s goals for 2025.
With AI in general and autonomous vehicles becoming part and parcel of daily life, Cyngn will have to prove that its fundamentals are well-placed to compete in this ever-crowded industry.
