Romeo Power Inc. (RMO) stock plunged by 4.69% in the last trading closed whereas the RMO stock declines by 14.18% in the pre-market trading session after Rome Power announced its fourth quarter and full-year 2020 financial results, which ended on December 31. Romeo Power is an energy technology pioneer offering significant electrification solutions to difficult commercial applications. RMO was established in 2016 and is headquartered in Los Angeles, California.
- Romeo Power has generated a revenue of $9.0 million for the full year of 2020.
- The cash and cash equivalents were $292.4 million for the year ended on December 31, 2020.
- Also, RMO has paid cash of $1.3 million for capital expenditures of the year 2020.
Last year’s Business overview
In the report given by RMO, it is given that the last year has been pivotal for Romeo Power. RMO finished its business combination with RMG Acquisition Corp. as well as PIPE financing related to it. In addition, it has provided a $346 million net amount to help the growth and progress in the future.
Also, RMO has closed an agreement of worth $234 million with Lion Electric. The agreement state that RMO will provide battery modules and packs for Lion’s fleet of electric commercial vehicles, it’s a multi-year agreement.
It is expected that the shortage of battery cells would restrict RMO’s near-term production and revenue in 2021, according to their forecast. Demand for raw materials and cells has surpassed supply especially with the rise in growth of the electric vehicle industry in recent months. RMO has forecasted that Romeo Power’s full-year revenue in 2021 to be significantly lower than anticipated due to the cell shortage. Although the time it takes to get our solutions to market is quite disappointing, they are working really hard with their chosen cell supply teams to ensure allocation and continuous cell development in the near and long term.