…but with the usual sliver of promise
EXRO ended 2024 with mixed results that fell far short of early-year expectations. When announcing its merger with SEA Electric in early 2024, EXRO forecasted over $200 million in annual revenue, largely based on delivering up to 1,000 SEA-Drive® electric propulsion systems. However, actual results told a different story. The company generated just over $23 million in revenue for the year—less than 12% of the original target (and a miss by over a million dollars on the low end of the guidance they provided most recently in November at the analysts day). This shortfall in SEA-Drive® production significantly contributed to a major write-down of over $223 million in goodwill and intangible assets tied to the merger. Although the acquisition marked a strategic pivot toward vertical integration in commercial EV drivetrains, the failure to scale production on time ultimately undermined financial performance and investor confidence.
In response to the failure to meet its ambitious 2024 projections, EXRO was forced to implement more drastic cost-cutting measures than it likely originally planned. The company had expected its merger with SEA Electric to drive rapid revenue growth and production scale. Instead, severe underperformance across key programs led to a deep financial shortfall and precipitous share price decline, triggering a company-wide restructuring. Between April 2024 and March 2025, EXRO reduced its workforce from 266 to approximately 130 employees—a more than 50% cut. Facility closures and operational consolidation followed, enabling EXRO to realize more than $15 million in annualized savings. However, even these aggressive reductions were not enough to offset the impact of missed revenue targets. The company ended the year with a comprehensive net loss approaching $289 million, underscoring the severity of the business reset.
OEM Collaborations
Market skepticism toward EXRO is not only justified—it’s deepening. After years of missed milestones and overly optimistic projections, investors have grown increasingly doubtful of the company’s ability to deliver. In 2024, EXRO forecasted over $200 million in revenue post-merger with SEA Electric, yet closed the year with just over $23 million. This isn’t an isolated miss—it follows a pattern that raises legitimate concerns about executive performance, particularly from CEO Sue Özdemir and CFO Darrell Bishop. Past initiatives touted as transformational, such as the 2023 partnership with Linamar to supply high-voltage Coil Driver™ units in an E-Axle, have yet to produce any tangible updates. We previously examined this ‘partnership’ in this article. EXRO has chosen not to use the opportunity to update shareholders on this even in its 2024 year-end disclosures—an omission that is increasingly concerning given the partnership’s previously stated importance and missed timelines.
Investor frustration has now escalated into legal action. A class action lawsuit filed in November 2024 directly names CEO Sue Özdemir and Board Chair Rod Copes, alleging material misrepresentations related to revenue projections tied to the SEA Electric merger. Ongoing updates are available on EXRO Infohub’s tracking page: KND Law / JSS Barristers Proposed Class Action.
With each unfulfilled promise, the broader question becomes more pressing: how long will shareholders—and the Board of Directors—allow this leadership team to continue guiding the company’s future?
However, even under the cloud of persistent skepticism, EXRO still continues to signal momentum in building strategic relationships with major passenger car OEMs.
A notable section in the company’s MD&A reads:
“OEMs such as Mack, Isuzu, and Mazda are investing in new U.S. manufacturing facilities to accelerate commercial EV adoption.”
The inclusion of ISUZU and MAZDA—alongside MACK, a confirmed EXRO partner—raises questions and speculation among investors. While EXRO has not formally announced collaborations with ISUZU or MAZDA, their mention is underscored by substantial, real-world facility investments by both automakers:
- ISUZU announced a new $280 million commercial truck assembly facility in Greenville County, South Carolina. Set to open in 2027, the site will produce internal combustion and electric trucks with a capacity of 50,000 vehicles per year and create over 700 jobs. This move supports ISUZU’s broader electrification strategy and aligns with the timeline for EXRO’s growing Coil Driver™ initiatives. Source
- MAZDA, through a joint venture with Toyota, completed the $2.311 billion Mazda Toyota Manufacturing (MTM) facility in Huntsville, Alabama. Operational since 2022, this plant produces up to 300,000 vehicles annually—150,000 of which are Mazda’s CX-50 crossover designed specifically for the North American market. The facility exemplifies Mazda’s push to localize supply and grow its U.S. market share. Source
These major investments indicate that both ISUZU and MAZDA are deeply committed to North American production and innovation, which may align with EXRO’s positioning as a technology supplier within the electric powertrain space.
The company also outlined its priority:
“The Company is focused on expanding collaborations with existing OEM partners and securing at least two new major partnerships.”
In early 2025, EXRO confirmed a promising development:
“In Q1 2025, EXRO was awarded innovation pilots with two additional major automotive OEMs, funded by the OEMs to evaluate the integration of EXRO’s Coil Driver™ into their electric and hybrid platforms.”
Though still unnamed due to non-disclosure agreements, these pilots are funded by the OEMs themselves, indicating a level of confidence and interest in the Coil Driver™ platform. If EXRO is to be believed, these programs are expected to move into prototype testing in Q2 2025.
Additionally, EXRO announced in February 2025 that it had initiated pilot testing with an INTERNATIONAL-brand EMV truck, a sign of traction in the Class 6/7 segment and further strengthening its global presence. This was covered in more detail in a separate article.
The Hero in the Background?
One stabilizing factor in 2025 has been the continued financial support of long-term investor Vestcor. In a move that prevented immediate liquidity concerns, Vestcor provided further funds and extended the maturity of EXRO’s senior secured promissory note and kept the door open for additional drawdowns. While this provides short-term balance sheet relief, it also strategically avoids issuing new equity at a time when EXRO’s share price is trading near all-time lows. Although this may appear altruistic, the more likely motivation is to prevent Vestcor’s ownership from crossing critical thresholds that could trigger change-of-control provisions or other governance implications. This dynamic—balancing financial lifelines with cautious share accumulation—was explored previously here: Shareholders and Takeover Dynamics.
Ultimately, even Vestcor’s continued backing cannot substitute for EXRO achieving scalable revenue.
Broader Market Environment and Outlook
While product development continues, EXRO has yet to deliver the type of consistent results or transparency long-time investors have hoped for. With its capital position stretched and profitability still out of reach, EXRO’s strategic future remains highly dependent on delivering meaningful partnerships and successful commercialization.
EXRO continues to operate in a volatile market. Regulatory uncertainty in the U.S. and changing policies have impacted near-term EV demand, particularly for commercial applications. Despite these challenges, the company sees future opportunities in states like Texas and Florida, where electrification is gaining momentum through private investment.
⚠️ Investor Caution
“EXRO must achieve profitability and free cash flow before its angel investors or creditors lose faith—otherwise, liquidation could become a real possibility.”
