MVST Stock Slides Toward Biggest Drop In 3 Years On Q1 Shocker: CEO Calls Weak Quarter ‘Temporary’

• Microvast blamed the drop on regulatory shifts and geopolitical issues in the Asia-Pacific.
• Gross margin fell to 31.6% from 36.9% due to lower production and weaker cost absorption. 
• CEO Yang Wu said the Q1 revenue decline reflects temporary disruptions, not structural issues. 

Microvast Holdings (MVST) stock is on track for its biggest intraday loss in nearly three years as investors react sharply to the company’s collapsing revenue, widening losses, and deepening concerns about global demand for its battery systems. 

MVST’s Earnings Shock

Microvast’s revenue dropped sharply by 48% year-on-year to $60.6 million compared to last year, falling well below the $99 million analysts’ estimate, according to Fiscal AI data. 

The company said the decline was caused by regulatory changes and geopolitical issues in Asia-Pacific countries like India and South Korea, along with delays in OEM launches and growing demand for cheaper products in some markets.

Gross margin contracted to 31.6% from 36.9%, reflecting reduced production volumes and weaker fixed-cost absorption. The company reported an adjusted net loss of $14.6 million, compared to a profit in the same period last year. Adjusted EBITDA also turned negative at $5.5 million. The adjusted loss per share was $0.04.

Microvast stock traded over 35% lower in Tuesday’s premarket. 

CEO Signals Optimism In MVST’s Business 

Speaking on the earnings call, Yang Wu, Founder, Chairman and CEO of Microvast, emphasized that the company’s first-quarter revenue decline reflects short-term disruptions rather than structural weakness.

“Our first quarter revenue was $60.6 million, reflecting a unique set of challenges, which created a year-over-year dip that we believe to be temporary. Our focus remains on bringing on capacity from Phase 3.2 as production time lines align with customer demand, and we expect this capacity to contribute to a continued revenue ramp through 2026,” said Wu. 

The CEO acknowledged that margin pressure may remain in the near term due to expenses tied to new facilities and changes in raw material pricing and reiterated the company’s goal of maintaining a stable margin profile.

What MVST Retail Traders Are Saying? 

On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day, with message volume surging 1,631% in 24 hours. 

A user questioned the company’s performance asking, “How t* did they only sell 60 mil. 277 MWh, 50% of it to Iveco. And then only 6 million in contract liabilities compared to 44 one year ago???”

Another user said, “This is an established company with real assets and revenues and is going nowhere.  The worst case scenario would be restructuring, moving to pink sheets, which can give the company time to re-emrage[emerge] stronger.”

MVST stock has declined by over 27% year-to-date. 

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