Commercial electric vehicle startup Arrival is delisting from the Nasdaq stock exchange, accelerating its dissolution. The company, which went public after merging with a special purpose acquisition company, announced Monday morning that Nasdaq will suspend trading in Arrival's stock on January 30 and will then officially delist it. Nasdaq took this action because Arrival has delayed reporting financial results or submitting a remediation plan to the exchange.
Just two months after Arrival announced it had received $50 million in life-saving money, the company issued a delisting notice, saying it hoped the money would be enough to keep the company afloat while it explores selling assets. At the same time, Arrival is reportedly in talks with accounting firm EY, hoping that EY will lead a bankruptcy-like administration process.
Arrival's biggest promise when it was founded was to make electric vehicle production "radically more efficient" by using so-called microfactories to build electric delivery vans, buses and more. The company went public through a merger with a SPAC in 2021, and its valuation quickly soared to $13 billion.
Like most of its EV SPAC peers, Arrival is struggling to grow its business and continues to burn through the money it raised in the deal. It has repeatedly shifted its focus and gone through rounds of layoffs. Arrival has continually changed leadership and last year even tried to merge with another SPAC in a desperate bid to raise more money, but ultimately failed.
At least before Nasdaq announced its delisting on Monday, the company now has a market capitalization of nearly $20 million. The company has yet to deliver fully production-ready vehicles to any potential customers, such as UPS or Uber.