AYRO Highlights Recent Accomplishments and Updates Stakeholders on its Current Business Strategy
AYRO Inc (NASDAQ:AYRO) released a stakeholder letter highlighting its 2024 achievements and 2025 strategy. The company achieved significant cost reductions, with operating expenses declining 74% from $6.1M in Q3-23 to $1.6M in Q3-24. Key developments include:
- Partnership with GLV Ventures to reduce manufacturing costs of the Vanish LSEV
- Becoming a Tier One Supplier for General Motors
- Securing first purchase order from a top three auto manufacturer through GLV partnership
- Management team enhancement with Gilbert Villarreal as President and Joseph Ramelli as CFO
The company plans to leverage its Texas facilities and GLV's low-cost manufacturing capabilities to expand as a contract manufacturer while maintaining Made in America status. AYRO maintains strong cash position to support current plans and focuses on increasing stockholder value through 2025.
AYRO Inc (NASDAQ:AYRO) ha pubblicato una lettera agli azionisti evidenziando i risultati del 2024 e la strategia per il 2025. L'azienda ha raggiunto significative riduzioni dei costi, con le spese operative che sono diminuite del 74%, passando da 6,1 milioni di dollari nel Q3-23 a 1,6 milioni di dollari nel Q3-24. Tra i principali sviluppi figurano:
- Collaborazione con GLV Ventures per ridurre i costi di produzione del Vanish LSEV
- Diventare fornitore di primo livello per General Motors
- Ottenimento del primo ordine di acquisto da un produttore automobilistico tra i primi tre grazie alla partnership con GLV
- Potenziamento del team dirigenziale con Gilbert Villarreal come Presidente e Joseph Ramelli come CFO
L'azienda prevede di sfruttare le sue strutture in Texas e le capacità di produzione a basso costo di GLV per espandersi come produttore in subcontracting mantenendo lo stato di produzione Made in America. AYRO mantiene una solida posizione di liquidità per supportare i piani attuali e si concentra sull'aumento del valore per gli azionisti fino al 2025.
AYRO Inc (NASDAQ:AYRO) publicó una carta a los interesados destacando sus logros de 2024 y su estrategia para 2025. La empresa logró una reducción significativa de costos, con los gastos operativos disminuyendo un 74% de 6,1 millones de dólares en el Q3-23 a 1,6 millones en el Q3-24. Los desarrollos clave incluyen:
- Asociación con GLV Ventures para reducir los costos de fabricación del Vanish LSEV
- Convertirse en un proveedor de primer nivel para General Motors
- Asegurar el primer pedido de compra de un fabricante de automóviles entre los tres principales a través de la asociación con GLV
- Mejora del equipo de gestión con Gilbert Villarreal como Presidente y Joseph Ramelli como CFO
La empresa planea aprovechar sus instalaciones en Texas y las capacidades de fabricación de bajo costo de GLV para expandirse como fabricante por contrato, manteniendo el estatus de Fabricado en América. AYRO mantiene una sólida posición de efectivo para respaldar los planes actuales y se enfoca en aumentar el valor para los accionistas hasta 2025.
AYRO Inc (NASDAQ:AYRO)가 2024년 성과와 2025년 전략을 강조한 이해관계자 서한을 발표했습니다. 이 회사는 운영 비용을 74% 줄여 2023년 3분기 610만 달러에서 2024년 3분기 160만 달러로 감소시키며 상당한 비용 절감을 달성했습니다. 주요 발전 사항은 다음과 같습니다:
- Vanish LSEV의 제조 비용을 줄이기 위해 GLV Ventures와 파트너십 체결
- 제너럴 모터스의 1급 공급업체가 됨
- GLV 파트너십을 통해 세 번째로 큰 자동차 제조사로부터 첫 번째 구매 주문 확보
- 길버트 빌라레알을 사장으로, 조셉 라멜리를 CFO로 영입하여 경영진 강화
회사는 텍사스 시설과 GLV의 저비용 제조 능력을 활용하여 계약 제조업체로서 확장할 계획이며, '메이드 인 아메리카' 지위를 유지합니다. AYRO는 현재 계획을 지원하기 위한 강력한 현금 위치를 유지하고 있으며, 2025년까지 주주 가치를 높이는 데 집중하고 있습니다.
AYRO Inc (NASDAQ:AYRO) a publié une lettre aux parties prenantes soulignant ses réalisations de 2024 et sa stratégie pour 2025. L'entreprise a réalisé d'importantes réductions de coûts, les dépenses d'exploitation ayant diminué de 74 %, passant de 6,1 millions de dollars au T3-23 à 1,6 million de dollars au T3-24. Les principales évolutions comprennent :
- Partenariat avec GLV Ventures pour réduire les coûts de fabrication du Vanish LSEV
- Devenir fournisseur de premier niveau pour General Motors
- Obtention de la première commande d'achat d'un des trois plus grands fabricants automobiles grâce au partenariat avec GLV
- Renforcement de l'équipe de direction avec Gilbert Villarreal en tant que Président et Joseph Ramelli en tant que CFO
L'entreprise prévoit de tirer parti de ses installations au Texas et des capacités de fabrication à faible coût de GLV pour s'étendre en tant que fabricant sous contrat tout en maintenant le statut de Fabrication Américaine. AYRO maintient une solide position de liquidité pour soutenir les plans actuels et se concentre sur l'augmentation de la valeur pour les actionnaires jusqu'en 2025.
AYRO Inc (NASDAQ:AYRO) hat einen Brief an die Stakeholder veröffentlicht, der die Erfolge von 2024 und die Strategie für 2025 hervorhebt. Das Unternehmen erzielte bedeutende Kostensenkungen, wobei die Betriebskosten im dritten Quartal 2023 von 6,1 Millionen US-Dollar auf 1,6 Millionen US-Dollar im dritten Quartal 2024 um 74% sanken. Zu den wichtigsten Entwicklungen gehören:
- Partnerschaft mit GLV Ventures zur Senkung der Produktionskosten des Vanish LSEV
- Einstieg als Tier-One-Lieferant für General Motors
- Sicherung des ersten Kaufauftrags von einem der drei größten Automobilhersteller durch die Partnerschaft mit GLV
- Verstärkung des Managementteams mit Gilbert Villarreal als Präsident und Joseph Ramelli als CFO
Das Unternehmen plant, seine Einrichtungen in Texas und die kostengünstigen Produktionsmöglichkeiten von GLV zu nutzen, um sich als Auftragsfertiger zu expandieren und gleichzeitig den Status „Made in America“ aufrechtzuerhalten. AYRO behält eine starke Liquiditätsposition bei, um die aktuellen Pläne zu unterstützen, und konzentriert sich darauf, den Wert für die Aktionäre bis 2025 zu steigern.
- 74% reduction in operating expenses (Q3-23: $6.1M to Q3-24: $1.6M)
- Achieved Tier One Supplier status with General Motors
- Secured first purchase order from major auto manufacturer
- Strategic partnership with GLV Ventures for cost reduction
- Strong cash position reported to support current operations
- Ongoing need for Vanish vehicle revamp to reduce manufacturing costs
Insights
The letter highlights notable financial and strategic developments that warrant careful analysis. The 74% reduction in operating expenses from
The achievement of becoming a GM Tier One Supplier and securing a purchase order from a top-three auto manufacturer represents a significant pivot in business strategy, diversifying revenue streams beyond their core LSEV business. However, investors should note the company's small
The strategic partnership with GLV Ventures and the focus on low-cost manufacturing facilities in Texas represent a important operational pivot. The dual-facility approach (Texas and GLV) strengthens the "Made in America" value proposition while potentially optimizing production costs. The Tier One Supplier status with GM is particularly noteworthy as it requires meeting stringent quality control and operational standards that few small manufacturers achieve.
The planned Vanish vehicle redesign through GLV could significantly improve unit economics, but the timeline and capital requirements for this transformation need careful monitoring. The expansion into contract manufacturing for major automakers leverages existing capabilities while diversifying revenue streams, though scaling production to meet potential demand from large OEMs will require careful capacity management.
The company's strategic repositioning in the EV market shows adaptability to changing market conditions. While maintaining focus on the Vanish LSEV, AYRO's expansion into automotive contract manufacturing represents a pragmatic diversification strategy. The GM Tier One Supplier status opens doors to the broader automotive supply chain, potentially reducing dependence on the highly competitive direct-to-consumer EV market.
However, the EV market landscape is increasingly challenging, with larger players having significant cost advantages. AYRO's focus on micro-distribution and last-mile delivery remains relevant, but success will depend on effectively balancing the core LSEV business with new contract manufacturing opportunities. The GLV partnership could provide important cost competitiveness, essential for surviving in the price-sensitive EV market.
ROUND ROCK, TEXAS / ACCESS Newswire / January 16, 2025 / AYRO, Inc. (NASDAQ:AYRO) ("AYRO" or the "Company"), a designer and manufacturer of electric, purpose-built delivery vehicles and solutions for micro-distribution, micro-mobility, and last-mile delivery, today provides a letter to stakeholders highlighting its recent accomplishments and discussing its path forward.
To our valued stakeholders,
Clearly, 2024 was a transformational year for AYRO. The purpose of this letter is to update you on our progress and how these developments help set our course for 2025.
Recent Accomplishments
During the fourth quarter of 2023, the Company took extraordinary measures to reduce its cost structure and improve profitability. In fact, total operating expenses declined from
$6.1 million in Q3-23 to just$1.6 million in Q3-24, a reduction of74% During 2024, we also took bold steps to reduce our manufacturing costs and enhance our management team. We began to revamp the Vanish, our Low-Speed Electrical Vehicle (LSEV), in late 2024, which is currently underway, and expect this work to significantly reduce its manufacturing costs through our new partnership with GLV Ventures. We fully expect this partnership to also open doors for additional business opportunities and expand our overall target market
In August of 2024, we enhanced the management team with the addition of Gilbert Villarreal as President of AYRO's operating subsidiary and hired a new Chief Financial Officer, Joseph Ramelli, both with the primary focus on improving the profitability of the Company and seeking partnerships to expand potential opportunities for AYRO
On December 4, 2024, we announced our partnership with GLV Ventures with the primary objective of leveraging the relationship to secure additional partnerships and drive new orders. Our initial focus is to use GLV's low-cost manufacturing capability to redesign the Vanish to enhance its unit profitability
Importantly, on December 12, 2024, we announced that the Company became a Tier One Supplier for General Motors, a significant accomplishment with incredible upside potential
Most recently, on December 16, 2024, we announced the securing of our first purchase order through our partnership with GLV, from a top three auto manufacturer. This highlights the Company's ability to diversify its business and expand into new markets
Going Forward
Following these recent accomplishments, we believe we are better positioned to continue to expand our reach as a contract manufacturer by leveraging both our low cost facilities in Texas and GLV's low-cost facilities, thereby underscoring a Made in America guarantee.
These milestones also help ensure that we can and will continue with the development and marketing of our Vanish vehicle, which remains a top opportunity. We remain focused on revamping our business and expanding into additional markets, which we believe will drive profitability and revenue growth.
Conclusion
Given that we are now a recognized supplier to GM, one of the largest auto manufacturers in the world, we believe that it will also enable us to further expand our capabilities and secure design and manufacturing projects. As such, we are also keenly focused on building a pipeline of non-GM opportunities.
With a revamped management team, a much lower cost structure, a valuable partnership with GLV, expanded capabilities, all which are supported by a strong cash position sufficient to support our current plans, we believe that our business outlook continues to improve and should improve our ability to successfully execute on our evolving business strategy to meet the demands of the changing EV market.
As always, our priority is to increase stockholder value, and we look forward to updating our stockholders on our continued progress throughout 2025.
Sincerely,
Josh Silverman
Executive Chairman
AYRO, Inc.
About AYRO
AYRO designs and produces zero emission vehicles and systems that redefine the very nature of sustainability. Our goal is to craft solutions in a way that leaves minimal impact on not only carbon emissions, but the space itself. From tire tread, fuel cells, sound, and even discordant visuals, we apply engineering and artistry to every element of our product mix. The AYRO Vanish is the first in this new product roadmap. For more information, visit www.ayro.com.
Forward-Looking Statements
This press release may contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any expected future results, performance, or achievements. Words such as "anticipate," "believe," "could," "estimate," "intend," "expect," "may," "plan," "will," "would" and their opposites and similar expressions are intended to identify forward-looking statements and include the development and launch of the AYRO Vanish. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: AYRO's success depends on its ability to complete the development of and successfully introduce new products; AYRO may experience delays in the development and introduction of new products; the ability of AYRO's suppliers to deliver parts and assemble vehicles; the ability of the purchaser to terminate or reduce purchase orders; AYRO has a history of losses and has never been profitable, and AYRO expects to incur additional losses in the future and may never be profitable; AYRO faces risks associated with litigation and claims; AYRO may be unable to replace lost manufacturing capacity on a timely and cost-effective basis, which could adversely impact its operations and ability to meet delivery timelines; the market for AYRO's products is developing and may not develop as expected and AYRO, accordingly, may never meet its targeted production and sales goals; AYRO's limited operating history makes evaluating its business and future prospects difficult and may increase the risk of any investment in its securities; AYRO may experience lower-than-anticipated market acceptance of its vehicles; developments in alternative technologies or improvements in the internal combustion engine may have a materially adverse effect on the demand for AYRO's electric vehicles; the markets in which AYRO operates are highly competitive, and AYRO may not be successful in competing in these industries; AYRO may become subject to product liability claims, which could harm AYRO's financial condition and liquidity if AYRO is not able to successfully defend or insure against such claims; increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, chipsets and displays, could harm AYRO's business; AYRO may be required to raise additional capital to fund its operations, and such capital raising may be costly or difficult to obtain and could dilute AYRO stockholders' ownership interests, and AYRO's long term capital requirements are subject to numerous risks; AYRO may fail to comply with evolving environmental and safety laws and regulations; and AYRO is subject to governmental export and import controls that could impair AYRO's ability to compete in international market due to licensing requirements and subject AYRO to liability if AYRO is not in compliance with applicable laws. A discussion of these and other factors with respect to AYRO is set forth in our most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q. Forward-looking statements speak only as of the date they are made and AYRO disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For investor inquiries:
CORE IR
investors@ayro.com
516-222-2560
SOURCE: Ayro, Inc.
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FAQ
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