About Cenntro Electric Group Ltd (CENN)

Cenntro Electric Group Ltd (NASDAQ: CENN) is a commercial electric vehicle technology company located in Freehold, New Jersey. Established in 2013, Cenntro manufactures and distributes electric light and medium-duty commercial vehicles.

The primary product of Cenntro is its Metro electric commercial van. Designed for last-mile urban delivery and fleet service applications, the Metro van boasts a modular design, economical price point, and efficient operation as its key features. Besides vans, Cenntro also produces electric passenger vehicles, trucks, and buses. The company sells its Electric Commercial Vehicles (ECVs) globally, utilizing both direct and dealer networks. Additionally, Cenntro offers connected technology solutions to assist fleets in managing their vehicles.

With assembly plants in the United States and China, Cenntro is expanding its manufacturing and distribution footprint to meet market demand in North America, Europe, and Asia.

As of 2022, the company has delivered over 3,300 electric commercial vehicles to more than 200 customers. These vehicles are deployed in over 25 countries for various use cases. Cenntro aims to be a leader in the mass commercialization of electric vehicles.

In 2021, Cenntro Electric Group became a publicly traded company through a SPAC merger, with its stock, CENN, trading on the Nasdaq exchange. The company is now transitioning towards producing at larger scales to capitalize on the growing global trend of fleet electrification.

Cenntro Electric Group (CENN) Historical Performance

CENN stock has experienced high volatility since Cenntro Electric Group went public through a SPAC merger in December 2020. Initially, the stock witnessed a meteoric rise in early 2021, which was subsequently followed by a prolonged decline over the past year.

CENN commenced trading on the Nasdaq on December 22, 2020, at an opening price of $5.26, after the completion of its merger with the blank-check company Spartan Acquisition Corp. III. Capitalizing on the growing hype surrounding electric vehicle stocks at the time, CENN soared to reach its all-time high of $15.48 on February 12, 2021. Despite experiencing high volatility, the stock managed to remain above $10 through February 2021.

However, beginning in March 2021, CENN entered a downtrend as the entire EV sector faced a broad selloff. By December 2021, CENN had depreciated to $2.44, marking an 84% decline from its peak. Furthermore, the stock continued its downward trajectory in 2022 amidst broader market weakness. In June 2022, CENN dropped below the $1 mark for the first time, recording a low of $0.95 on June 13, 2022. This price represented a significant 93% decline from the all-time high.

Some key events that contributed to CENN’s prolonged slide include

• Cenntro delivered just 362 vehicles in 2021 versus a target of 2,000. Also, It revised 2022 guidance down from 20,000 to 15,000 vehicles.
• Supply chain disruptions, like chip shortages, hampered manufacturing and distribution.
• Lawsuits filed in 2021 alleged securities fraud related to the SPAC deal.
• Departures of co-founder Chris Thorne and board member Joe Tong in 2022.

While it is still well below its peak, CENN has managed to regain some ground in recent months, trading around $1.14 as of January 2023.

Here’s a table illustrating the price history of Cenntro Electric Group Ltd (CENN) stock.

Cenntro Electric Group (CENN) Financial Details

Cenntro reported an annual revenue of $8.942 million in 2022 and $8.577 million in 2021, which is a substantial drop from the $57.684 million in revenue reported in 2020. Also, the company’s net loss for 2022 significantly expanded, totaling $110.088 million, compared to a net loss of $16.422 million in 2021.

This sharp decline in net income can be attributed to various factors including supply chain disruptions, parts shortages, and logistical issues, all of which severely hampered Cenntro’s production and sales. Plus, The company delivered only 567 vehicles in 2022, down from 1,348 vehicles in 2021.

The company’s gross profit turned negative, with a gross loss of $514,000 in 2022, compared to a gross profit of $1.503 million in 2021. Furthermore, gross margins also took a hit in 2022, deteriorating significantly due to rising materials costs and lower production volumes, which inevitably compressed margins.

On the positive side, it is important to note that Cenntro continued to invest in research and development, with expenses amounting to $6.363 million in 2022, a significant increase from $1.478 million in 2021. Also, the company’s balance sheet remained relatively healthy, with $155 million in cash reserves, thanks to capital raised through stock offerings. But, it is important to note that the company continued to burn through these reserves due to its high operating losses.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction

The long-term forecast for CENN stock remains certain given the company’s history of execution struggles. Here’s a table showing the stock forecasts and price predictions for CENN from 2023 to 2030.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction 2024

In 2024, we expect Cenntro Electric Group (CENN)’s stock price to grow a lot. The predicted average price is $0.46, which means a big increase of 109.23%. The price is likely to go as high as $0.56 and not go lower than $0.42.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction 2025

CENN’s stock should keep going up in 2025. It is predicted to increase to an average price of $0.63, showing a big growth of 193.67%. The highest price is expected to be $0.82, and the lowest should be $0.53.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction 2026

In 2026, more growth is expected for CENN’s stock. Predictions suggest an average price of $0.92, which is a big 319.47% increase. The stock might hit a high of $1.13 and is expected to stay above $0.83.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction 2027

In 2027, significant growth is expected for Cenntro Electric Group’s stock. The average price is likely to reach $1.43, showing a stellar 527.81% increase. The stock is predicted to hit a high of $1.63 and maintain a minimum value of $1.24 during this period.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction 2028

2028 is set to be a highly favorable year for CENN, with the stock’s average price expected to rise to $1.84. This increase marks a remarkable growth of 736.29%. The stock is likely to peak at $2.24 and not go below $1.53. With strong upward momentum, CENN’s stock is a noteworthy option for investors looking for significant returns.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction 2029

Moving into 2029, Cenntro Electric Group’s stock is expected to continue growing. The anticipated average stock price is $2.35, with the highest price likely reaching $2.73 and the lowest at $2.05. This forecast suggests a substantial growth rate of 946.15%, underlining the company’s strong market position and potential for expansion.

Cenntro Electric Group (CENN) Stock Forecast & Price Prediction 2030

By 2030, predictions indicate that CENN’s stock will reach an average price of $2.83, with a peak at $3.23 and the lowest price around $2.54. This outlook represents significant growth of 1154.67%, highlighting Cenntro Electric Group’s potential for exponential growth. This makes CENN a compelling choice for investors searching for stocks with strong future prospects.

Why Is CENN Stock Dropping?

Since early 2021, CENN stock has been going down for a long time, losing over 90% from its highest value ever. Several important reasons are causing this big drop in the stock’s value:

1. Failing to Meet Production and Delivery Targets: Cenntro didn’t deliver as many vehicles as it planned to. In 2021, it delivered only 362 vehicles, even though it had planned to deliver 2,000. This issue happened again in 2022, with 567 deliveries instead of the 1,500 target.
2. Supply Chain Disruptions and Parts Shortages: Like other automakers, Cenntro has had big delays because of issues with supply chains, a shortage of semiconductor chips, and problems with logistics. These issues have slowed down production and growth.
3. Investor Skepticism and Declining Interest: There was a lot of excitement about electric vehicle (EV) stocks from 2020 to early 2021, and CENN stock increased in value during this time. But now, people are not as interested, and the value of many stocks, including CENN, has gone down. The general feeling about these stocks is now negative.
4. Lawsuits and Controversy: In 2021, some investors took legal action against Cenntro. They claimed that the company made misleading statements and committed fraud related to a SPAC deal. This hurt the company’s reputation.
5. Departures of Senior Executives: In 2022, co-founder Chris Thorne and board member Joe Tong resigned, which made people worried about problems with the company’s leadership.

Will CENN stock go up?

Although CENN stock has been in a long slump, there are reasons to believe it might recover and increase in value in the future:

1. Increased Production: If Cenntro can fix its supply chain problems and meet its growth targets, the stock price should benefit from higher production and revenues, as the demand for commercial electric vehicles (EVs) is still strong.
2. Launching New Products: Cenntro plans to offer new types of vehicles, including electric commercial vehicle (ECV) buses, pickup trucks, and special urban delivery vans. These new products could attract more customers.
3. Expanding Geographically: Cenntro is increasing its business in North America, Europe, and Asia. Entering new markets could lead to more orders and sales.

If Cenntro capitalizes on these opportunities its stock forecast indicates an upside potential for the company’s stock. Predictions say that the stock have the ability to reach over $2 in 2030 which is a substantial growth of 1154.67% from the current stock value.

Cenntro Electric Group (CENN) FAQs

What is the Future of CENN Stock?

Based on our analysis, CENN stock could hit $1.84, which is approximately 730% growth, in 2028. But, the company would need to demonstrate sustainable competitive advantages in technology, manufacturing, and profitability metrics over the next 5 years.

Is CENN stock expected to go up in 2023?

Our model predicts CENN stock could reach $0.31 by end of 2023, a 47% upside due to easing supply chain issues and production improvement. However, more upside could be limited in the near term.

What was the highest price CENN stock ever reached?

CENN hit an all-time high of $15.48 in February 2021 at the peak of EV sector hype before crashing over 90% since then.

Does Cenntro Electric pay a dividend on CENN shares?

No, Cenntro Electric does not pay any dividend on its stock. The company is in high growth mode and redeploying capital into expansion plans.

What is Cenntro Electric’s market capitalization?

As of January 2023, CENN’s market cap stands around $63 million with the stock trading at $0.24 and outstanding shares around 263 million.

Who are the key competitors for Cenntro Electric?

Major competitors include established vehicle OEMs like Ford and GM entering EV space along with startups like Rivian and Arrival.