Arrival is an electric-vehicle startup that planned to use microfactories to build electric buses, vans and a car designed for Uber drivers. It also had programs for XL delivery vans targeted at the U.S. market with planned production in Charlotte, North Carolina by 2024. Those plans have largely unraveled: the company has dropped its Uber car and bus programs, slashed production targets, and laid off workers four times in the past 15 months. Arrival has missed SEC filing deadlines, including its 2022 annual report, and executed a reverse stock split to try to regain Nasdaq compliance. Financially, Arrival reported about $43 million of cash and cash equivalents at the end of the first half of 2023 and a net loss of $155.7 million in that period (versus a $100 million loss in H1 2022). It reduced capital expenditures to $4.1 million in H1 2023 from $198.9 million in H1 2022 as part of restructuring and cost-cutting efforts. The company is pursuing strategic alternatives, including a potential sale, while seeking additional capital to continue operations. Arrival is a pre-revenue electric vehicle maker focused on purpose-built last-mile delivery vans and a microfactory manufacturing approach. The company has shifted its product strategy to prioritize XL vans for the U.S. market and plans to start production in Charlotte, North Carolina in late 2024. Arrival is currently burning cash rapidly and has implemented drastic cost cuts, including a planned 50% headcount reduction to leave fewer than 800 employees and a target cash spend of no more than $35 million per quarter. It has built two L vans so far at its Bicester facility and aims to produce 10 L vans and accumulate 250,000 kilometers of public road mileage by the end of 2023 to validate engineering. Financially, Arrival says it is pre-revenue, reduced net debt by $121.9 million after a February sale of common stock, and is seeking further financing to fund XL development and ramp production. Leadership changes include the appointment of Igor Torgov as CEO and other governance moves such as a proposed reverse stock split to regain Nasdaq compliance. Arrival develops electric buses. The company is led by a former head of Yota. The article reports that a fund linked to Vladimir Potanin invested €50 million in Arrival. The report does not provide details on the financing instrument or other participating investors. No operating metrics, revenue, or user numbers are included in the article. Public comments attached to the article express a range of opinions about the company and its investors. Arrival is a British electric vehicle company that focuses on commercial vehicles, notably vans and buses. Founded in London in 2015 by Denis Sverdlov, the company has attracted strategic investors including Hyundai, Kia, UPS, and BlackRock. Earlier this year Arrival secured a reported €100 million strategic investment from Hyundai and Kia at a €3 billion valuation and later received a $118 million investment from BlackRock. The company has an order from UPS for 10,000 Generation 2 electric vehicles. Arrival plans to open a small-scale “microfactory” in Rock Hill, South Carolina, investing $46 million to establish its first U.S. production facility. The Rock Hill site is expected to produce up to 1,000 battery-powered buses per year and employ about 240 people once it opens next year. Arrival is a UK-based electric-vehicle startup led by Denis Sverdlov that has developed in-house software, materials, components and other technologies for Generation 2.0 electric vehicles. Its core product is a scalable 'skateboard' electric platform that can be adapted across multiple vehicle categories to underpin Purpose Built Vehicles (PBVs). Arrival is targeting vans and other vehicles for logistics, on-demand ride-hailing, and shuttle-service markets. The company plans to explore those segments through co-development with automotive partners. In January 2020 Arrival received a €100M investment from Hyundai Motor Company and Kia Motors Corporation to enable co-development of eco-friendly vans and other PBVs. Hyundai will contribute €80M and Kia €20M as part of the deal.

Total raised

$641M

Funding rounds

5

Latest round

Convertible Note

Latest activity

Nov 2023