Microvast’s Stock (MVST) Gives Back Some Gains Pre-Market

Microvast's stock price (NASDAQ: MVST) is down 7.1% through this morning's pre-market, giving back some of the impressive gains (+32.48%) seen through yesterday's session. The company, a global provider of next-generation battery technologies for commercial and specialty vehicles, finds itself in a peculiar position moving into Q2.

Record revenues and significantly improved margins for the fourth quarter and full year 2024, alongside bullish guidance for 2025, has given the bulls something to cling to, with earnings beating consensus.

When zooming out however, the uptick seen in the stock does little to offset the sharp declines experienced recently, and pales in comparison to the gains seen over the past year. The stock has shed 35.68% of its value since the start of 2025, yet continues to be firmly green over the past year, with gains of 573% making the stock a huge outperformer for longer term holders.

Taking a closer look at recent earnings, the company posted impressive Q4 revenue of $113.4 million, comfortably surpassing analyst expectations (which ranged from $91.88 million to $93.71 million) and representing an 8.4% year-over-year increase.

Full-year 2024 revenue hit a record $379.8 million, up a robust 23.9% compared to 2023. Perhaps the most significant financial highlight was the dramatic improvement in profitability metrics; full-year gross margin expanded to 31.5% from 18.7% in 2023, with Q4 gross margin reaching an even stronger 36.6%.

Looking forward, Microvast's management painted an optimistic picture for 2025. The company guided for full-year revenue in the range of $450 million to $475 million, implying substantial year-over-year growth of 18% to 25%. Furthermore, they aim to maintain healthy gross margins around the 30% mark. Bolstering this outlook is a reported backlog of $401.3 million, suggesting continued strong demand for its battery solutions, particularly noted in the US and EMEA markets which saw triple-digit percentage revenue growth in 2024. Expansion plans, like the Huzhou Phase 3.2 facility adding 2 GWh capacity, are key to meeting this demand.

Volatility can be expected after such a run, and picking a direction here is not for the faint of heart. In the short-term, continuing to hold $1.50 on significant volume could be a marker to watch in the days ahead.