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Shares of Robo.ai Inc. (AIIO) plummeted nearly 20% in pre-market trading on Wednesday, after the company announced a 1-for-20 reverse stock split in an effort to regain compliance with Nasdaq’s $1 minimum bid requirement.
The consolidation will reduce the company’s Class A shares to 1.8 million from 36.4 million, while its Class B shares will be cut to 17.79 million from 355.7 million. The reverse split will take effect on April 6, 2026.
Separately, in a letter to shareholders, Robo.ai’s CEO, Benjamin Zhai, said the decision was aimed at improving market perception, reducing compliance-related volatility, and attracting broader institutional investor interest.
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