ROUND ROCK, TX - AYRO, Inc. (NASDAQ:AYRO), a designer and manufacturer of electric vehicles with a market capitalization of $5.45 million, has been named a tier one supplier for General Motors (NYSE:GM) through its partnership with GLV Ventures, the company announced today. According to InvestingPro analysis, AYRO appears undervalued at current levels, despite its stock showing high volatility with a beta of 3.7. This collaboration marks an expansion of AYRO's low-cost manufacturing and engineering efforts and may lead to further opportunities with other major manufacturers.
Executive Chairman Josh Silverman stated that the partnership with GLV and the new status as a tier one supplier favorably positions AYRO for future design and manufacturing projects. He expressed optimism about the potential for new revenue-generating purchase orders as a result of this collaboration.
AYRO, known for its zero-emission vehicles, including the AYRO Vanish, aims to create sustainable solutions with minimal environmental impact. The company's approach involves careful consideration of various elements of product design, from tire treads to fuel cells.
The press release also contained forward-looking statements, cautioning that these involve risks and uncertainties that could cause actual results to differ materially from anticipated outcomes. InvestingPro data reveals several risk factors, including rapidly depleting cash reserves and weak gross profit margins, with revenue at just $0.22 million in the last twelve months. Factors such as development delays, supply chain issues, market acceptance, competition, and regulatory compliance were mentioned as potential risks. Get access to 12 more exclusive InvestingPro Tips for comprehensive risk assessment.
AYRO's announcement is based on a press release statement and reflects the company's current plans and expectations for its partnership with GLV and its role as a supplier for GM. The company's history of losses and the competitive nature of the electric vehicle market were highlighted as part of the challenges it faces.
Investors interested in AYRO can contact CORE IR for inquiries at investors@ayro.com. While the company maintains a strong current ratio of 6.55, indicating solid short-term liquidity, detailed financial analysis is available through InvestingPro's comprehensive metrics and real-time updates. The original press release is available on accesswire.com.
In other recent news, AYRO Inc. has amended its preferred stock terms and granted equity awards to its directors, marking significant changes in the company's governance structure. According to filings with the Securities and Exchange Commission, the company has modified the Certificate of Designations for its Series H-7 Convertible Preferred Stock, with the changes agreed upon with the required holders. This amendment includes the reclassification of Director Equity Grants as "Excluded Securities."
The equity awards consist of fully vested restricted shares and cash-settled restricted stock units of AYRO's common stock, issued at a price per share of $0.76. These Director Equity Awards are part of the AYRO Inc. Long-Term Incentive Plan and are subject to the terms outlined in the Plan and each Director Award Agreement.
InvestingPro's analysis reveals that despite challenges with weak gross profit margins and rapid cash burn, the company is currently undervalued. Data from the same source indicates that AYRO maintains a strong liquidity position with a current ratio of 6.55, suggesting its ability to meet short-term obligations. However, the company's stock has experienced significant volatility, declining over the past year.
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