Lithium battery cell manufacturer Romeo Power (RMO) has been losing momentum since its stock market debut in late December last year. So, the question is, as a tier-1 supplier, will RMO be able to regain investor confidence in the near term? Read more to find out.Romeo Power, Inc. (RMO) in Vernon, Calif., manufactures lithium-ion batteries for commercial electric vehicles (EVs) in two segments: Romeo Power North America and Joint Venture Support. On December 30, 2020, the company went public through a SPAC deal with RMG Acquisition Corp. RMO’s enterprise value prior to the merger stood at $900 million.
Regarding this special purpose acquisition, RMO ex-CEO Lionel Selwood Jr. said, “We are very excited about completing our merger with RMG…At this inflection point, where regulation is driving electrification across the commercial vehicle industry, and adjacent sectors, Romeo Power’s energy technology is ready to meet the demand.”
However, RMO has declined 76.9% in price year-to-date, reflecting investor concerns over its declining financials and multiple changes in senior management. Selwood, who played a major role in RMO’s stock market debut, was replaced on August 6, following which the stock declined 26.8%.