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Investing.com -- Carbon Revolution PLC (NASDAQ:CREV) stock fell 2.9% on Friday after the carbon fiber wheel manufacturer announced the cancellation of two electric vehicle programs amid weakening demand in the broader EV market.
The Tier 1 OEM supplier, which produces lightweight advanced technology automotive carbon fiber wheels, revealed that a customer had terminated two programs earlier than expected. These programs were initially anticipated to contribute substantial wheel volumes to the company’s production.
Carbon Revolution is pursuing claims related to these cancelled programs but did not disclose the specific customer involved or the potential financial impact of the terminations.
Alongside the program cancellations, the company announced it had reached an agreement with Orion Infrastructure Capital (OIC) for up to $7 million in additional funding. The first $5 million was released on October 31, 2025, with a potential second tranche of $2 million available no earlier than March 31, 2026.
Despite this funding, Carbon Revolution warned it may need to secure additional capital in the short term and is "actively seeking other strategic alternatives" to be completed within its current fiscal year ending June 30, 2026.
The company also faces Nasdaq compliance issues and has submitted a plan seeking an extension until November 26, 2025, to regain compliance with listing requirements.
Carbon Revolution had previously revised its revenue forecasts downward and slowed expansion plans due to declining wheel orders, particularly in the EV segment, as disclosed in a July 25 release.
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