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Arrival (NASDAQ:ARVL) stock is slipping on Friday following reports that the electric vehicle (EV) company is delaying certain projects.
According to these reports, Arrival is pushing back the development of its electric cars and electric buses. Instead, the company is going to continue to focus its time on manufacturing its electric vans.
So why exactly is ARVL pushing back the production of electric cars and buses? Insiders claim that the company lacks the revenue needed to further develop these products. To combat that, it will focus on its electric vans to generate revenue and grow its business.
While these EV products are delayed, that doesn’t mean Arrival is giving up on them completely. The sources behind today’s report claim that the electric car project could be revived if the company starts generating enough revenue from its electric vans, reports Reuters.
It’s worth noting that Arrival’s alleged decision to switch focus on electric vans comes after United States Postal Service (USPS) news last month. The USPS is seeking to further electrify its delivery fleet, which would require more electric vans.
That’s something ARVL investors will want to keep in mind as the company is the current supplier of electric vans for United Parcel Service (NYSE:UPS). While Arrival hasn’t been named as the supplier of new EVs for the USPS, it’s a likely candidate.
ARVL stock is down 4% as of Friday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.