FREEHOLD, N.J. - Cenntro Inc. (NASDAQ: CENN), an electric commercial vehicle company, has announced the opening of a new assembly and distribution facility in Ontario, California, aimed at bolstering its presence in the U.S. west coast market. The new facility is now operational with full-scale production capabilities for Cenntro's LS400 and Metro vehicle models.
As of June 2024, the California facility has successfully assembled and dispatched over three dozen LS400 units to customers on the west coast. This development is part of Cenntro's strategic initiative to streamline its North American operations and enhance the efficiency of deliveries to west coast clients, enabling them to electrify their fleets more effectively.
Peter Wang, Chairman and CEO of Cenntro, stated that the establishment of the California facility is a significant step towards improving production capabilities and meeting the increasing demand for electric vehicles (EVs) in the region. The company's intent is to drive sales growth by enabling fleet customers to reduce their carbon footprint and operational costs.
The new facility in California complements Cenntro's existing assembly facility in Howell, New Jersey, which continues to serve the east coast market. Concurrently, Cenntro is in the process of winding down its operations at the Jacksonville, Florida facility.
Cenntro, recognized for its range of electric commercial vehicles (ECVs), from class 1 to class 4 trucks, is also focused on developing a global supply chain and enhancing its manufacturing, distribution, and service capabilities. The company continues to advance its product offerings through investments in battery technology, powertrain, and smart driving technologies.
This press release statement contains forward-looking statements, and interested parties are cautioned that such statements involve risks and uncertainties. For further details on these risks, Cenntro has provided disclosures in its public filings with the SEC, including its most recent Annual Report on Form 10-K. The information in this article is based on a press release statement from Cenntro Inc.
In other recent news, Cenntro Inc., an electric commercial vehicle manufacturer, has been making significant strides in the global market. The company announced the release of its latest Logistar series model, the LS210, which has received European N1 type approval and is set to be sold in European and other global markets. The LS210 is a successor to the LS200 model and is designed for urban goods transportation.
Furthermore, Cenntro Inc. reported the delivery of over twenty Class 4 Logistar® 400 (LS400) electric commercial vehicles across the United States. The company's CEO, Peter Wang, confirmed that production and delivery of the LS400 are accelerating. The LS400 has garnered substantial interest, and Cenntro is advancing its series models, which are currently undergoing testing and certification processes.
The company is leveraging its California Air Resources Board (CARB) certification and Zero-Emission Powertrain Certification (ZEP) to boost sales in California and support the electrification of commercial fleets nationwide.
These developments reflect Cenntro's commitment to evolving its product line in response to the growing demand for environmentally friendly and technologically advanced commercial vehicles. The company is also enhancing its product capabilities with advanced battery, powertrain, and smart driving technologies.
InvestingPro Insights
Cenntro Inc. (NASDAQ: CENN) has been making strategic moves to cement its standing in the electric vehicle market, especially with the opening of its new assembly and distribution facility in California. As the company ramps up production to meet the west coast's demand for electric commercial vehicles, it's important to look at some key financial metrics and insights that could affect investor perception and the company's future performance.
InvestingPro Tips indicate that Cenntro is experiencing significant volatility in its stock price, which could be a factor for potential investors to consider. Moreover, the company is quickly burning through cash, which is a critical aspect to monitor as it expands its production capabilities and invests in new technologies. On the positive side, Cenntro has seen a notable return over the last week, suggesting some investor optimism in the short term.
From the real-time data provided by InvestingPro, Cenntro's market capitalization stands at $52.37 million USD, reflecting its current valuation in the market. The company's revenue growth over the last twelve months as of Q1 2024 is an impressive 107.92%, indicating a significant increase in sales which aligns with the company’s operational expansion narrative. Still, the gross profit margin remains low at 9.44%, underscoring the challenges Cenntro faces in terms of cost management and profitability.
Investors should note that Cenntro's price has fallen significantly over the last year, with a -56.35% return, which contrasts with the recent positive weekly performance. This highlights the importance of a cautious and informed approach when considering investment in Cenntro's stock. For those looking for more insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/CENN, which could provide further guidance on the company's financial health and stock performance.
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