Solid Power: Testing Investors' Patience (Archive)
Solid Power’s delays, cash burn and policy risks keep the stock’s downtrend intact.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Solid Power's A-2 cell delivery timelines are delayed to early 2025, indicating R&D progress is slower than expected.
- Q4 FY24 FCF burn is expected to be $48.6 million, and ongoing high capital outlay is expected as the company transitions from batch to continuous flow electrolyte production.
- Liquidity is eroding, with only 5 quarters of short-term funding remaining.
- Relative to the S&P500, SLDP's underperformance downtrend is still intact, with no signs of a pause or a reversal.
- An incoming Trump administration may reduce EV-related grant subsidies, posing additional risks to Solid Power's funding and commercialization efforts.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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