Shares of the electric vehicle (EV) battery technology company SES AI Corporation (SES -22.98%) fell hard today after the company released Q2 results yesterday that missed analysts' consensus estimates for both its top and bottom lines.
SES AI stock was down by 17.5% as of 11:05 a.m. ET, giving up all the gains it made yesterday after the company regained compliance with the New York Stock Exchange's listing requirements.
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A disappointing quarter
Just one day after receiving a note from the New York Stock Exchange that it was back in compliance with the exchange -- after its shares remained at an average closing price of $1 for 30 days -- SES AI's stocks fell sharply as investors processed the company's unimpressive quarter.
SES AI's revenue was $3.5 million in Q2, below Wall Street's consensus estimate of $4.5 million, and the company's loss of $0.07 per share was worse than analysts' expectation of a loss of $0.05 per share. Despite the lackluster results, SES AI founder and CEO, Qichao Hu, said the company's "path to profitability remains strong, and we are on track to reach our year-end revenue target of between $15 million to $25 million."
One bright spot for the company is that it ended the second quarter with no debt and $229 million in cash.
A bumpy road ahead
Investors' upbeat response to SES AI achieving NYSE compliance yesterday -- followed by today's sharp sell-off after disappointing Q2 results -- shows that this stock is likely to stay volatile in the near term.
Even with the company sticking to its outlook of annual revenue between $15 million and $25 million for the year and SES AI not having any debt right now, investors should be cautious about buying this EV stock. Regaining compliance is certainly a step in the right direction, but its Q2 results show that SES AI likely has a long way to go before investors should consider buying it.
