How an Electrical Mobility Company can manage its Financial profile while a production of a product, to Ensure the Group from its Economic Downfall?

The leading electrical mobility company had been entered into loss by ramping up their manufacturing power, causes the downfall of the company in the year 2018. The company was not able to do the production the products first but later half of the year they were able to increase production and are still currently in the process of ramping up their manufacturing power. While production may have increased somewhat, company’s financial profile has only declined. The company executives came to Research Nester to seek out for help in obtaining solutions.

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An overview:

1

A prominent electrical mobility company from the United States, having a remarkable market share, wanted to upgrade itself and raise its market value in the industry, to overcome its economic downfall.

2

The company aimed to increase its market share by manufacturing more products by the end of the year and reach to the top position in the industry.

3

Research Nester helped through its macroeconomic analysis consulting services solution in finding out the ways to rise and maintain its financial profile during the production of the new products. This helped in making an impeccable strategy for upgrading the financial liquidity to ensure the Group to respond swiftly to strategic economic downfall of the company and giving state of electrical mobility services for the customers.

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The Story

Research Nester found that there were approximately a 60% of economic loss in the last years. Furthermore, different types of mobility companies have invested in the electrical mobility company for the production of the electrical vehicles. The team found out that the following causes of the economic loss -

  • - Over production of the products
  • - Financial Woes
  • - Too many upcoming projects
  • - Tight Competition
  • - The quality of the electrical vehicles manufactured

Here, owing to the advent of the electrical mobility industry, the company was incapable of getting the funds for the production of the new products due to its economic loss. This was also causing a drop in the demand for the product.

The Solution:

Research Nester used its macroeconomic analysis consulting services solution and found various notable electrical mobility market which were incorporating, but not our client. Hence, it was needed that our client too incorporated those electrical mobility industries, to get the financial funds to overcome its economic loss and manufacture the new products by:

  • By completing on project at a time.
  • Framing the work chart for a project.
  • Maintaining Future Capital Requirements.
  • By checking the quality of the new product manufactured.
  • By fixing the amount of investment in a particular project.

The fact that the company had been unable to produce sufficient quantities of vehicles for the purpose of meeting demand has been a major problem for some time. As the company managed its 2018 journey, it has thus been able to increase output and is currently in the process of increasing production capacity. Although the company’s output may have grown slightly, its finances appear to be shrinking. In fact, the company experienced a massive and unexpected loss that rocked investors. The company reported a loss of over $700 million in the first quarter of 2019. In an alarming twist, $200 million of the company’s first quarter revenue came from regulatory credits. In an effort to hold on, the company said it had raised over $2 billion in capital and this was considered only a temporary fix that would prevent the company's collapse. The company has done a great job of keeping investors interested in the company's future, which makes it possible for them to raise support when times get tough. However, it seems that analysts are beginning to realize that the company is not quite as successful as it would like people to think.

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Results

With the utilization of the macroeconomic analysis consulting services solution, Research Nester measured the company’s current economic scenario in the industry. Our analysts understood where the company was lagging behind and provided the company an effective strategy to gain new financial liquidity and maintain its financial profile to overcome its economy downfall, which the company was not following to be on the track to maintain its economy. This helped the company in upgrading its financial credit and product delivery strategies. Further, the company could raise its market share to 80% during CY2020 from its earlier share of 41% in CY2019. The company also raised the demand of the product by 20%.

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swara-keni
Swara Keni

Head- Global Business Development

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