Volcon stock plunges to 52-week low of $0.58 amid steep decline

Published 23/05/2025, 16:10
Volcon stock plunges to 52-week low of $0.58 amid steep decline

Volcon Inc. (VLCN) shares have tumbled to a 52-week low, touching down at $0.58, as the electric vehicle company grapples with market challenges. According to InvestingPro data, the company’s financial health score stands at a concerning 1.37 (WEAK), with negative EBITDA of -$24.97M and a market capitalization now at just $2.69M. This latest price level reflects a precipitous drop from previous valuations, with the stock experiencing a staggering 1-year change of -99.61%. Investors have watched with concern as Volcon’s market position has weakened over the past year, leading to this new low point in the company’s stock performance. The significant decline raises questions about the company’s future prospects and the broader electric vehicle market’s volatility. InvestingPro analysis indicates the stock is currently undervalued, though it’s worth noting the company’s alarming gross profit margin of -363% and beta of -1.08, suggesting strong negative correlation with market movements. (Get 14 additional ProTips and detailed analysis with InvestingPro.)

In other recent news, Volcon Inc. announced its financial results for the first quarter of 2025, reporting revenue of $736,049, which reflects a decrease compared to the previous two quarters. The company also experienced a net loss of $2,460,430, although this marks an improvement from the last two quarters of 2024. In a strategic move, Volcon has initiated a share buyback program, allowing the repurchase of up to $2 million of its common stock until March 2026. This decision, supported by the company’s $19.1 million in unrestricted cash, indicates a focus on returning value to shareholders. Additionally, Volcon has entered into a supply agreement with Venom-EV to provide up to $3 million worth of golf carts, with an initial order of 500 vehicles already placed. As part of this agreement, Volcon will issue shares of its common stock to Venom based on the number of units purchased. The company is also evaluating the impact of increased tariffs on goods imported from China and Vietnam, considering options such as U.S. assembly or cost adjustments for consumers. These developments highlight Volcon’s ongoing efforts to navigate market conditions and expand its product offerings.

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