Why Did AIIO Stock Slump 20% Today?

• The consolidation will reduce the company’s Class A shares to 1.8 million from 36.4 million.
• Robo.ai’s Class B shares will be cut to 17.79 million from 355.7 million.
• Robo.ai’s CEO said the decision was aimed at improving market perception, reducing compliance-related volatility, and attracting broader institutional investor interest.

Shares of Robo.ai Inc. (AIIO) plummeted more than 20% 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.

CEO’s Letter To Shareholders Highlight Undervalued Stock 

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.

“Currently, the company's share price performance does not adequately reflect the preliminary results of our artificial intelligence transition and international expansion,” the letter read.

Meanwhile, retail sentiment for AIIO on Stocktwits slipped to ‘bearish’ from ‘neutral’ a day earlier.

Robo.ai Expands AI Capabilities with New Joint Venture

In February, Robo.ai announced a joint venture with DaBoss.AI to build an embodied intelligence data center in the United Arab Emirates. The initiative aims to tackle key challenges in AI development, including data scale, cost, and compliance, while supporting real-world deployment of advanced AI systems.

The joint venture will combine Silicon Valley expertise with a global collaboration model to improve data delivery and access to diverse datasets. 

Robo.ai also revealed its first commercial deal under this partnership, with its subsidiary set to deliver 30,000 hours of robot training data to DaBoss over 12 months.

Year-to-date, the stock has crashed more than 70%.

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