Weak Balance Sheet / High LeverageNegative equity combined with substantial debt materially constrains financial flexibility. High leverage increases refinancing and covenant risk, limits ability to invest in scaling production, and raises the likelihood of dilutive financing. This structural capital weakness heightens execution risk over the next several quarters.
Poor Cash GenerationThe absence of positive operating cash flow indicates operations are not yet self-funding, forcing reliance on external capital. Continued weak cash generation constrains working capital for production ramps, supplier payments, and warranty reserves, creating a persistent financing dependency until deliveries reliably produce positive OCF.
Persistent Operating LossesDespite revenue growth, negative EBITDA and a history of operating losses show unit economics and cost structure remain unproven at scale. Sustained operating losses erode runway and require repeated financing, making profitability contingent on successful scaling, cost control, and conversion of reservations into profitable deliveries.