Shares dropped 11.1% as investors were clearly disappointed by the significant revenue decline, gross margin compression, and a cautious outlook driven by supply chain bottlenecks, execution challenges, and delayed production capacity ramp.
- Q2 revenue fell sharply to $2.1 million, down significantly from both prior year and Q1, resulting in a gross loss for the quarter.
- Supply chain constraints delayed production and shipments, particularly impacting new battery configurations for new customers.
- Execution struggled due to overloaded resources and management bandwidth consumed by board and leadership changes.
- The Texas production facility was not yet operational in Q2, delaying capacity expansion and negatively affecting manufacturing output.
- Management is prioritizing core business focus, has exited Bitcoin mining and repaid debt, and expects better execution and capacity utilization starting in Q3.
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