Microvast Holdings Inc (NASDAQ:MVST) shares are trading lower in Monday’s after-hours session on reports the U.S. Energy Department ended contract negotiations.
What Happened: The U.S. Department of Energy (DOE) reportedly canceled contract negotiations for another potential $200 million award for Microvast, per Reuters, citing a source familiar with the matter.
In late 2022, Microvast and General Motors Co (NYSE:GM) received a $200 million grant from the DOE to support construction of a new separator manufacturing facility in the United States.
The company’s existing Tennessee facility is expected to be ready for production in the fourth quarter of 2023. Microvast recently said it had ramped up hiring ahead of the anticipated production start.
Microvast shares have staged a significant rally over the past couple of weeks since the company reported better-than-expected quarterly results and raised full-year 2023 guidance.
The lithium battery maker ended the quarter with $285.8 million in cash, equivalents and short-term investments, and also had a backlog of $486.7 million.
See Also: What’s Going On With Tesla Stock Today?
MVST Price Action: Microvast shares were down 27.3% after hours at $1.60 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Microvast.
