What happened
The CEO of Arrival (ARVL 1.30%) is stepping down, part of a broader shakeup at the troubled electric vehicle (EV) manufacturer. Investors are hoping the reshuffling will have a positive impact, sending shares of Arrival up as much as 18% on Friday.
So what
Arrival came to market in March 2021 via a deal with a special purpose acquisition company (SPAC) with plans to develop battery-powered vans, buses, and cars. But the company has had a difficult time since going public. In August, Arrival shelved its bus and car projects in favor of developing an electric van for United Parcel Service. In October, the company cut about one-third of its staff to preserve cash.
On Thursday, Arrival announced founder Denis Sverdlov is stepping down as CEO and has been appointed chairman of the company's board. Peter Cuneo, a current board member, has been appointed as interim CEO. Company president and chief of strategy Avinash Rugoobur has also resigned, but will remain a board member.
Now what
Arrival needs a lot of help to fulfill its vision, and investors are banking on Cuneo as a good candidate to get the job done. Cuneo joined Arrival as part of the SPAC deal, and has a track record as a turnaround specialist including guiding Marvel Entertainment out of bankruptcy.
For now, the priority for Arrival is the UPS contract. The company is behind schedule but said in September it was on track to deliver its first 20 vans to customers before the end of the year. If Arrival can get its products to customers, there is still a chance this company could be a success.
