UnprofitabilityPersistent negative net profit and EBIT margins mean the business is not yet generating operating returns. This undermines the company's ability to self-fund growth, generates no retained earnings for reinvestment, and indicates structural cost or pricing gaps that must be closed to reach sustained profitability.
Negative Cash FlowsNegative operating and free cash flows constrain capital availability for manufacturing scale, R&D, or charging infrastructure. Continued cash burn raises reliance on external funding, increasing dilution or financing costs, which is critical for a capital-intensive EV manufacturer over the next several quarters.
Low Gross MarginsAlthough gross margins have improved, they remain low, limiting the company's ability to cover operating expenses and invest in growth while moving toward profitability. Structural margin pressure from component costs or pricing competition could impede durable margin expansion.