Capital NeedsExro shares have been downgraded to Hold from Buy due to electric vehicle industry challenges, a potential shift to smaller order opportunities, capital needs, and a low working capital balance.
Industry ChallengesExro faces challenges in raising capital due to recent events in the EV industry, including bankruptcies and debt restructurings among other companies.
Stock DilutionExro's stock price has decreased by 50% quarter-to-date, and there is anticipation of issuing equity to raise capital, which could be incrementally dilutive.