$ AYRO – AYRO, Inc
AYRO, Inc. (AYRO), formerly DropCar, Inc., is a designer and manufacturer of light-duty, emissions-free electric vehicles for urban and community transport, local delivery, closed campus mobility, recreational, and government use. The company’s first and latest EV models, the AYRO (pronounced “arrow”) 311 and the Club Car 411, are both offered in multiple configurations. The company’s vehicles are now primarily used on college campuses and resorts due to their efficacy and low speeds, making them a safe and viable option for operations on these properties, with plans to expand to other uses soon. Recently, AYRO is in the process of a manufacturing deal with Karma, a U.S subsidiary of China’s Wangxiang Group, that will help the company to produce EV types that are in high demand due to the presence of COVID-19.
Over the past year, AYRO has seen a financial year loss of $8.7m and a trailing twelve-month loss of $9.9m, amplifying its loss by moving away from its breakeven target. With “some industry analysts predicting a breakeven point to be near, the company is expected to incur a financial loss in 2021, before generating positive profits of $7.6m in 2022.” (Simply Wall St) For this break even point to occur just over a year from now, it is calculated that the company is expected to reach an expected “annual growth rate of 91%.” (Simply Wall St) It is also important to note that if the company were to grow at a slower rate than expected, AYRO will become profitable later due to the plans the company has in its mix.
Back in September of 2020, AYRO announced that they would be partnering with the EV maker Karma Automotive with a contract to have Karma to help produce over 20,000 electric delivery vehicles through 2023. This contract, valued at more than $300m, will see Karma helping to design, engineer, and manufacture the vehicles in its southern California factory. This comes in light of the heightened need for electric delivery vehicles as AYRO CEO Rod Keller said that “restaurants increasingly need their own EV delivery fleets as more sales are made via deliveries through firms such as DoorDash, GrubHub Inc, and Uber Eats.” In addition, on March 8th of this year, AYRO announced the launch of the first ever Electric Vaccine Vehicle (EVV) which will be designed specifically to “mobilize a flexible, safe, and efficient means of delivering vaccines and testing to millions of people in 2021 and beyond.” (AYRO Inc,)
This paired with the companies most recent announcement that AYRO has reached an agreement with Element Fleet Management to help select, finance, and optimize their fleets for cost savings, driver safety, and reducing environmental impact. AYRO CEO Rod Keller added further comment to the agreement stating that AYRO “should now be able to provide custom, end-to-end EV fleet management services for commercial customers, enabling us to quickly and effectively scale” while gaining a specific competitive advantage towards other companies who do not “have this support in meeting immediate demand for sustainable delivery fleets.” With AYRO’s plans to continuously construct electric delivery vehicles for food delivery services on and off campuses, local delivery, and electric delivery vehicles for government use during the COVID-19 pandemic, AYRO can expect a large amount of income for the coming future. Especially with their plans of partnering with Karma for more efficient manufacturing as well as improved management with Element Fleet, the company’s trend of fiscal year losses will soon be over, creating a path for large profits and growth within the company.
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Sources used in this Article:
(Simply Wall St)
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