Shares of Enovix Corp. fell sharply on Friday after the battery technology developer lowered its full-year revenue guidance, citing weaker-than-expected demand and ongoing supply chain challenges.
The company now expects 2024 revenue of $150 million to $170 million, down from its prior forecast of $220 million to $240 million. Enovix attributed the revision to slower adoption of its silicon-anode battery technology and delays in scaling production at its manufacturing partners.
The revised guidance follows a broader slowdown in demand for advanced battery materials, as end-market customers in consumer electronics and automotive sectors adjust inventory levels. Enovix also noted that supply constraints, particularly for key raw materials, have persisted longer than anticipated.
The stock dropped 12% in premarket trading, extending losses from Thursday’s 8% decline after the company reported first-quarter results that missed analyst expectations. Enovix reported a net loss of $32.1 million for the quarter, wider than the $28.3 million loss recorded in the same period last year.
Analysts at Wedbush reduced their price target on Enovix to $10 from $15, citing the weaker outlook and heightened execution risks. The stock has now fallen more than 40% year-to-date, underperforming the broader market and its peers in the battery technology sector.
Enovix’s silicon-anode batteries are designed to offer higher energy density and faster charging compared with traditional lithium-ion batteries, positioning the company as a key player in next-generation energy storage solutions. However, the company has faced challenges in ramping up production to meet commercial demand, particularly in the smartphone and electric vehicle markets.
The company’s management emphasized that while near-term headwinds persist, it remains focused on long-term growth opportunities, including partnerships with major OEMs and expansion into new applications such as wearables and IoT devices.
