What happened

After climbing nearly 5% through the first two days of the week, shares of Hyliion Holdings (NYSE:HYLN) are moving in reverse today as shareholders dig through the company's third-quarter earnings report, which was released after the market closed yesterday. Although the company exceeded analysts' bottom-line expectation, investors weren't impressed, expressing concern over the supply chain challenges facing the company.

As of 10:36 a.m. EST on Wednesday, Hyliion's stock was down 12.6%.

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Image source: Getty Images.

So what

In the pre-revenue phase of its development, Hyliion, which builds electric powertrains for trucks, didn't have any revenue expectations from analysts to meet, though Wall Street was expecting the company to report a loss per share of $0.24. Beating expectations, Hyliion reported a slimmer loss of $0.15 per share.

Weighing more heavily on investors' minds, however, is the company's struggle with navigating the supply chain woes. In the press release addressing the third-quarter 2021 performance, the company acknowledged that "While Hyliion recently achieved critical product milestones, supply chain challenges and enhancements to the Multi-Phase Development Program have led to an extension in the go-forward development timeline."

In addition, the company intimated that investors might need to exercise some extra patience, saying, "Similar to others in the automotive industry, the shortage of semiconductors, as well as several other key components, is extending the Company's timelines longer than expected."

Now what

Although investors may find the supply chain challenges disconcerting, there was some positive news in the report. Hyliion, for example, stated that it believes operating expenses for 2021 will be lower than expected, forecasting $110 million to $120 million instead of the original guidance of $130 million to $140 million.

The market's souring on the stock today seems like a mild overreaction; however, prospective investors might want to wait to see things head back on track before parking this electric vehicle stock in their portfolios. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.