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Volcon (VLCN)
NASDAQ:VLCN
US Market

Volcon (VLCN) AI Stock Analysis

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VL

Volcon

(NASDAQ:VLCN)

28Underperform
Volcon is struggling with financial instability, evidenced by ongoing losses, erratic revenue growth, and negative cash flow. Technical indicators suggest a bearish trend with no valuation support, leading to a low overall stock score.

Volcon (VLCN) vs. S&P 500 (SPY)

Volcon Business Overview & Revenue Model

Company DescriptionVolcon Inc. (VLCN) is an innovative company specializing in the design and manufacturing of all-electric, off-road powersports vehicles. Based in the United States, Volcon targets outdoor enthusiasts by offering a range of electric motorcycles, utility terrain vehicles (UTVs), and other related products. The company's mission is to provide eco-friendly mobility solutions without compromising on performance or excitement.
How the Company Makes MoneyVolcon Inc. generates revenue primarily through the sale of its all-electric off-road vehicles. Key revenue streams include direct sales to consumers and dealerships, as well as potential subscription-based services or aftermarket parts and accessories. Additionally, partnerships with retailers and distributors help expand the company's market reach. Volcon may also explore strategic collaborations with technology companies to enhance vehicle features and increase sales potential. The company's earnings are influenced by factors such as market demand for sustainable transportation, brand recognition, and the expanding infrastructure for electric vehicles.

Volcon Financial Statement Overview

Summary
Volcon is facing substantial financial challenges, with significant losses, high leverage, and liquidity constraints. The income statement shows a lack of profitability, the balance sheet highlights leverage risks, and the cash flow statement indicates liquidity issues. Strategic initiatives are necessary to stabilize financial health.
Income Statement
35
Negative
Volcon's income statement reveals significant challenges with profitability. The company has consistently reported negative gross profit and net income, indicating a lack of profitability. Revenue growth is present but insufficient to cover escalating losses, as evidenced by substantial negative EBIT and EBITDA margins. The company's financials highlight an urgent need for strategic adjustments to improve cost management and enhance revenue streams to move toward profitability.
Balance Sheet
40
Negative
The balance sheet shows a concerning financial position with a high debt-to-equity ratio, due in part to negative equity in recent periods. While the company has managed to reduce total liabilities, it still faces significant leverage risks. The equity ratio has improved due to a reduction in liabilities, but the company's overall financial stability remains at risk without a clearer path to profitability and improved equity.
Cash Flow
30
Negative
Volcon's cash flow statement reflects ongoing struggles with negative operating and free cash flow, indicating liquidity issues. Despite some financing activities providing cash inflows, the company remains dependent on external financing. The free cash flow to net income ratio is negative, underscoring the challenge of converting revenue into cash. Improvement in cash flow operations is critical for long-term viability.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.13M3.26M4.55M448.82K0.00
Gross Profit
-17.18M-8.13M-8.87M-10.06M-2.52K
EBIT
-31.79M-29.79M-32.06M-39.18M-1.37M
EBITDA
-40.66M-39.48M-30.78M-39.45M-1.36M
Net Income Common Stockholders
-43.71M-45.07M-36.41M-39.36M-1.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.19M7.98M10.99M5.57M536.08K
Total Assets
22.13M22.13M22.73M14.62M1.85M
Total Debt
31.41M31.41M18.96M2.31M824.56K
Net Debt
23.22M23.43M7.97M-3.26M288.48K
Total Liabilities
41.76M41.76M22.09M8.32M3.00M
Stockholders Equity
-19.63M-19.63M635.01K6.30M-1.14M
Cash FlowFree Cash Flow
-25.45M-30.52M-34.45M-25.00M-1.40M
Operating Cash Flow
-25.04M-29.57M-33.65M-24.16M-1.16M
Investing Cash Flow
-329.97K-860.72K-799.41K-838.03K-249.04K
Financing Cash Flow
28.31M27.08M40.41M30.03M1.94M

Volcon Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.89
Price Trends
50DMA
1.59
Negative
100DMA
3.06
Negative
200DMA
10.11
Negative
Market Momentum
MACD
-0.15
Negative
RSI
35.73
Neutral
STOCH
48.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLCN, the sentiment is Negative. The current price of 0.89 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 1.59, and below the 200-day MA of 10.11, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 35.73 is Neutral, neither overbought nor oversold. The STOCH value of 48.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VLCN.

Volcon Risk Analysis

Volcon disclosed 38 risk factors in its most recent earnings report. Volcon reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Volcon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$2.23B15.6010.42%4.92%-1.15%121.43%
HOHOG
68
Neutral
$3.13B7.3014.19%2.77%-11.13%-31.78%
64
Neutral
$288.81M-1.53%-45.70%-115.77%
THTHO
62
Neutral
$4.10B20.455.13%2.54%-8.45%-25.41%
59
Neutral
$12.24B11.04-1.00%3.78%1.30%-19.54%
PIPII
53
Neutral
$2.31B21.218.18%6.38%-19.69%-77.72%
28
Underperform
$3.26M-864.11%23.80%99.03%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VLCN
Volcon
0.89
-349.27
-99.75%
LCII
LCI Industries
87.43
-24.44
-21.85%
HOG
Harley-Davidson
25.25
-16.92
-40.12%
PII
Polaris
40.94
-52.32
-56.10%
THO
Thor Industries
75.81
-34.80
-31.46%
MCFT
MasterCraft Boat Holdings
17.22
-6.19
-26.44%

Volcon Corporate Events

Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and Strategy
Volcon Enters Supplier Agreement with Venom-EV
Neutral
Feb 27, 2025

Volcon, Inc. has entered into a Supplier Agreement with Venom-EV, appointing Volcon as Venom’s supply representative for its gold carts. The agreement allows Volcon to purchase up to $3 million worth of products from Venom’s manufacturer, with payment terms set at net 90 days. Venom will handle shipping, tariffs, and product liability, while Volcon will issue shares to Venom based on product purchases, subject to shareholder approval. The agreement, effective February 25, 2025, has a one-year term with possible extensions and includes provisions for termination in case of insolvency or breach. Additionally, Volcon’s Board of Directors approved new committee appointments on February 21, 2025.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.