AYRO becomes GM Tier One Supplier, eyes growth in 2025

ROUND ROCK, TEXAS - AYRO, Inc. (NASDAQ:AYRO), a designer and manufacturer of electric delivery vehicles with a market capitalization of $4.75 million, announced a series of strategic moves aimed at restructuring its operations and expanding its market reach. The company, which is focused on micro-distribution and last-mile delivery solutions, detailed its recent achievements and future plans in a letter to stakeholders. According to InvestingPro analysis, AYRO maintains a "WEAK" overall financial health score, highlighting the importance of its restructuring initiatives.

AYRO reported a significant reduction in operating expenses, achieving a 74% decrease from $6.1 million in the third quarter of 2023 to $1.6 million in the same period of 2024. This was part of the company’s efforts to improve profitability and streamline its cost structure.

In late 2024, AYRO began revamping its Low-Speed Electrical Vehicle (LSEV), the Vanish, in collaboration with GLV Ventures, aiming to reduce manufacturing costs and enhance unit profitability. This partnership is also expected to facilitate business expansion and market diversification.

The management team was strengthened with the addition of Gilbert Villarreal as President of AYRO's operating subsidiary and Joseph Ramelli as the new Chief Financial Officer. Both hires are primarily focused on improving the company's profitability and exploring new partnerships.

A significant milestone for AYRO was becoming a Tier One Supplier for General Motors (NYSE:GM) on December 12, 2024, which the company believes will open up further design and manufacturing projects. Shortly after, on December 16, AYRO secured its first purchase order through the partnership with GLV from a leading auto manufacturer.

Looking ahead, AYRO is set to continue leveraging its low-cost manufacturing capabilities in Texas and through GLV, which supports a Made in America guarantee. The company intends to further develop and market the Vanish vehicle and explore opportunities outside of its General Motors relationship. InvestingPro analysts anticipate sales growth of 23.75% for the current year, though they note the company is not expected to achieve profitability this year. For deeper insights into AYRO's growth prospects and 14 additional ProTips, consider exploring InvestingPro's comprehensive analysis tools.

AYRO's executive chairman, Josh Silverman, expressed confidence in the company's improved business outlook, citing a strong cash position that supports current plans and the potential to execute an evolving business strategy in the changing electric vehicle (EV) market.

The information in this article is based on a press release statement from AYRO, Inc. The company's forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected. AYRO's future performance depends on various factors, including the development and market acceptance of its products, competitive industry conditions, and potential regulatory changes.

In other recent news, AYRO Inc. has seen significant developments in its corporate structure and operations. The company recently expanded its Long-Term Incentive Plan, increasing the number of shares available for grants to over four million, following approval from stockholders. Furthermore, AYRO has secured tier one supplier status with General Motors through its partnership with GLV Ventures, a move expected to expand the company's low-cost manufacturing and engineering efforts. This partnership could potentially open up additional opportunities with other major manufacturers.

In addition to these developments, AYRO has made notable changes to its governance structure. The company has amended the terms of its preferred stock and granted equity awards to its directors. The equity awards, part of the AYRO Inc. Long-Term Incentive Plan, consist of fully vested restricted shares and cash-settled restricted stock units of AYRO's common stock, issued at a price per share of $0.76.

Despite facing challenges such as rapidly depleting cash reserves and weak gross profit margins, with revenue at just $0.22 million in the last twelve months, AYRO maintains a strong liquidity position with a current ratio of 6.55. Analysts from InvestingPro anticipate a 23.75% revenue growth for the company in the current fiscal year. These are recent developments providing insight into AYRO's strategic initiatives and financial health.

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