Aston Martin Lagonda Global Holdings Plc. reaffirmed its guidance for the full year and said its cars were selling well, alleviating concerns raised by reports that it was seeking to raise funds.
Shares of the British carmaker fell 8% on Thursday, erasing an earlier tumble of 20%, after issuing a statement saying it is regularly reviewing financing options. The stock fell nearly 10% on Wednesday when Autocar announced that the automaker may recruit a new investor and offer a position on its board of directors. The Financial Times said the Saudi Public Investment Fund could take a stake in the company worth £200 million ($243 million), citing unnamed sources.
“Order books are strong and have strengthened further in recent months, with sports cars sold through 2023,” Aston Martin said in the statement.
Once touted as a peer of Ferrari NV, Aston Martin has struggled since going public in London four years ago. The automaker was forced in 2020 to seek bailout by Canadian billionaire Lawrence Stroll, who has spent the past two years injecting vital cash and forging closer ties with Mercedes-Benz Group AG.
While Aston Martin’s plan is to expand its range with more iterations of the successful DBX sport utility vehicle and revitalize its sports car range, deliveries of its £2.4million Valkyrie supercar have fallen behind.
Order intake for the DBX is more than 40% higher than last year, and Valkyrie production “continues to ramp up,” the company said Thursday. Aston Martin shares are down 65% this year.
— By Siddharth Philip (Bloomberg)