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WOBURN, Mass. - SES AI Corporation (NYSE: SES), a company specializing in high-performance AI-enhanced batteries, announced that its Board of Directors has approved a share repurchase program. The company is authorized to buy back up to $30 million of its Class A common stock, representing approximately 11% of its current $267.37 million market capitalization. The move comes despite the stock’s significant decline of 66.52% year-to-date, indicating management’s confidence in its financial projections and liquidity for the year.
The repurchase plan allows SES AI to acquire shares through various methods such as open market transactions and privately negotiated deals, in compliance with the Securities Exchange Act of 1934 and other laws. While the program does not require the company to buy a set number of shares, it may adjust repurchases based on factors like market conditions and available capital.
Qichao Hu, Founder and CEO of SES AI, stated that the repurchase program is backed by the company’s affirmation of its revenue guidance for 2025 and its expectation to end the year with over $200 million in liquidity. Hu emphasized that the buyback strategy is a judicious use of capital that can potentially enhance shareholder value without compromising the company’s financial stability. However, InvestingPro analysis reveals the company is currently burning through cash rapidly and was not profitable over the last twelve months. For deeper insights into SES’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
SES AI is known for its innovative approach in the battery sector, integrating artificial intelligence across various aspects of its operations, from R&D to battery health monitoring. The company, established in 2012, is headquartered in Boston and has a global presence, with facilities in Singapore, Shanghai, and Seoul.
The press release also contains forward-looking statements regarding SES AI’s business strategies and financial performance expectations. However, these projections are subject to risks and uncertainties, and actual outcomes may differ. The company cautions against placing undue reliance on these statements. For comprehensive analysis of SES’s valuation and growth prospects, investors can explore additional insights through InvestingPro, which offers 14 additional key investment tips and detailed financial metrics.
This share repurchase authorization reflects SES AI’s proactive approach to capital management and its belief in the company’s ongoing financial health. The announcement is based on a press release statement from SES AI Corporation.
In other recent news, SES AI Corporation has reported preliminary revenue results for the first quarter of 2025, expecting between $5.0 million and $5.8 million, aligning with its full-year guidance. The company also anticipates a strong liquidity position with approximately $240 million in cash, cash equivalents, and short-term investments, and no debt outstanding. SES AI has announced plans to host a live demonstration of its new Molecular Universe MU-0 platform on April 29, 2025, which aims to enhance battery material discovery using artificial intelligence. The platform is expected to streamline research and development in battery technology, particularly benefiting sectors like electric vehicles and energy storage. However, SES AI has received a notice from the New York Stock Exchange for failing to meet the minimum stock price requirement, with its stock falling below $1.00 over a consecutive 30-day period. The company is working to resolve this issue and return to compliance within the six-month timeframe allowed by the NYSE. Investors are advised to monitor SES AI’s updates as the company continues to innovate and address stock listing challenges.
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