Negative Gross Profit And Persistent LossesConsistently negative gross profit and sizable net losses signal structural unit economics issues: pricing, production cost, or mix problems. Unless gross margins recover through design, scale, or cost cuts, persistent operating losses will constrain reinvestment and long-term viability, risking chronic cash consumption.
Ongoing Cash Burn And Weak Cash GenerationSustained negative operating and free cash flows mean the business cannot self-fund growth and requires continual external capital or parent support. Continued cash burn reduces strategic optionality, elevates refinancing and funding risk, and limits ability to invest in product roadmap or dealer support over the medium term.
Balance-sheet Leverage Spike In 2025A sudden increase in debt alongside shrinking equity materially raises leverage and refinancing risk. Higher interest and covenant pressure can constrain operational flexibility, force prioritization of debt service over R&D or marketing, and amplify downside if revenue and margins don't improve.