High Leverage And Weakened Equity RatioElevated leverage reduces financial flexibility to fund production ramp or warranty liabilities, raises refinancing and interest risks, and constrains ability to invest in R&D or capacity. A weak equity ratio also limits buffers against operational setbacks.
Negative Operating And Free Cash FlowPersistent cash burn forces reliance on external financing or equity raises, which can be dilutive and uncertain. Weak cash generation undermines the company’s ability to scale production, honor working capital needs, and sustain multi-year commercialization efforts.
Declining Revenue And Negative MarginsFalling sales and negative gross/EBITDA margins point to production inefficiencies, pricing pressure or poor mix. Without durable margin recovery, the business struggles to fund operations internally or demonstrate a viable path to profitable scale.