Arrival (ARVL) nabs $300M in capital, yet US Van production remains underfunded
UK-based EV startup Arrival has garnered a fresh $300 million in equity financing in hopes it can slow the financial bleeding that has plagued it in recent months. As previously announced layoffs and cost cuts take effect, Arrival expects the funding to help slow its cash-burn rate, but says it will need to raise even more in order to begin Van production in the US next year.
Arrival ($ARVL) is an UK-based startup focused on delivering urban-centric mobility by way of its last-mile Arrival Van, although at one point the EV developer was soaring high in innovation, also developing an all-electric passenger bus and a rideshare-specific Arrival Car designed alongside Uber.
Like many young startups, Arrival’s need for massive amounts of funding took its toll over time. Following its public offering via an SPAC merger in March of 2021, Arrival’s stock value has tumbled, leading to an announcement last summer that it would be reorganizing its business to focus solely on Van production, halting Bus and Car development.
By October of 2022, Arrival announced it was pivoting its EV business once again, shifting its focus to US production after citing significant costs to scale overseas and a less-than-stellar at-the-market (ATM) platform. The revised strategy mentioned the cutting of “cash-intensive activities,” including staff salaries, particularly “a sizable impact on the company’s global workforce, predominantly in the UK.”
By November, Arrival president and chief of strategy Avinash Rugoobur resigned for personal reasons, and CEO Denis Sverdlov stepped down into a new role as chair of the board. Simultaneously, Arrival had received a letter of compliance because its stock share was too low. The company has until May to get its stock over $1.00 to avoid being delisted. As of this morning, shares are listed at $0.148.
Still, the startup fights on. Its former EVP of digital Igor Torgov will took over as company CEO in late January alongside the unfortunate news that it would be cutting its staff of 1,600 in half. Arrival hopes that these cuts alongside the funding announced today will help it stay liquid through 2023 while it tries to raise additional funding to reach scaled production.
Arrival’s late-2024 Van production feels quite far away
While today’s funding news should be encouraging from those fortunate to remain on staff at Arrival, the EV startup is by no means out of the red yet and has a long road ahead of it to actually reach Van production.
According a report from Automotive News Europe, Arrival believes the $300 million in equity financing from Westwood Capital will help it hit its targeted cash burn rate of $35 million each quarter, at least by the second half of this year. That’s when much of the aforementioned cash cuts and layoffs will take full effect.
The startup also said that the additional capital combined with the measures above should provide more liquidity to the business, at least enough to keep it going until late 2023. Still, Arrival isn’t expected to begin Van production at its US microfactory in Charlotte, North Carolina, until late 2024.
To keep the lights on into next year, Arrival said it is kicking off additional fundraising efforts focused on its targeted Van production timeline. To settle the previously mentioned issue with the Nasdaq listing, Arrival recently called for a meeting of shareholders to vote on a reverse stock split proposal to regain compliance. At the end of 2022, Arrival had approximately $205 million in cash and cash equivalents.
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Germany is about to become home to Europe’s largest battery storage system – a massive 1 gigawatt (GW) / 4 gigawatt-hour (GWh) project in Jänschwalde, Brandenburg.
LEAG Clean Power GmbH and Fluence Energy GmbH, a subsidiary of US-based Fluence Energy (NASDAQ: FLNC), are teaming up to build the “GigaBattery Jänschwalde 1000.” The four-hour system will use Fluence’s Smartstack technology, its latest large-scale energy storage solution.
Once complete, Europe’s largest battery storage project will play a key role in stabilizing Germany’s grid and storing renewable power for when the sun isn’t shining and the wind isn’t blowing. It’s designed to deliver essential grid services, support energy trading, and boost energy security as the country phases out fossil fuels.
LEAG’s broader “GigawattFactory” plan combines solar and wind farms with flexible power plants and large-scale batteries across Germany’s Lusatian energy region. “By constructing gigascale storage facilities, we’re addressing one of the biggest challenges of the energy transition: ensuring constant power regardless of the availability of renewable energies,” said Adi Roesch, CEO of the LEAG Group.
Fluence CEO Julian Nebreda described the project as a “milestone for the energy future of Germany and Europe,” adding that it demonstrates how collaboration and cutting-edge technology can “transform the foundation of our economy and our everyday lives.”
The German government recently reaffirmed the importance of storage in building a secure and affordable clean power system. With this 4 GWh giant, LEAG and Fluence are implementing that priority in one of Europe’s most coal-heavy regions.
Read more: Battery boom: 5.6 GW of US energy storage added in Q2
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![The Genesis GV90 is shaping up to be a real stunner [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2024/11/Genesis-GV90-ultra-luxury-SUV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
The GV90 will be the brand’s largest, most luxurious SUV yet. With its official debut coming up, a production version of the Genesis GV90 was spotted in public for the first time, offering a closer look at the stunning SUV.
The Genesis GV90 is a stunning flagship SUV
Genesis vehicles already have a unique design that’s hard to miss. The big Creste Grille, Two-Line Quad Lamps, and smooth character lines offer a refined, luxurious look, but Genesis is planning to take it to the next level with the GV90.
The GV90 is an “ultra-luxe, state-of-the-art SUV,” according to Genesis. It will be the luxury brand’s new flagship vehicle and first full-size electric SUV.
We got our first look at the flagship SUV last March after Genesis unveiled the Neolun concept at the New York Auto Show.
The GV90 has been spotted out in public several times now, even flashing high-end features like coach doors and adaptive air suspension, but now, we are finally getting our first look at the production version in real life.
A new video from HealerTV shows the production version of the Genesis GV90 in action. Although it’s still covered in camo, you can see a few slight design changes from the concept shown last year.
The headlights and grille appear closer in design to its current vehicles, but other than that, the GV90 looks essentially the same up front as the Neolun concept.
Since it’s still covered, it’s hard to see where the headlights are connected at this point. From the side and rear, the GV90 looks identical to the concept.
Genesis has yet to announce an official launch date, but the GV90 could debut by the end of the year with sales expected to kick off in mid-2026.
The flagship SUV is rumoured to be the first vehicle to debut on Hyundai’s new eM platform, which it claims will “provide 50% improvement in driving range” compared to its current EVs. It will also serve as a tech beacon, featuring Hyundai’s most advanced connectivity and safety tech.
We will learn official prices and final specs soon, but one thing is for sure: it won’t be cheap. The Genesis GV90 is expected to start at around $100,000, but higher trims could cost significantly more with added features and options.
Genesis is also introducing its first hybrid, the GV80, next year, followed by its first extended-range electric vehicle (EREV) based on the GV70. The EREV is expected to launch in late 2026 or early 2027. There’s also an off-road SUV in the works, which will likely arrive as a 2027 model.
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