09-05-2025
Chipmaker Wolfspeed shares fall 23% as slowing EV sales hit annual revenue forecast
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Chipmaker Wolfspeed 's shares fell 23% on Friday after it raised going-concern doubts and forecast weaker-than-expected annual revenue as it grapples with slowing electric-vehicle demand amid economic company is squeezed between sluggish demand in the industrial and automotive markets, while rival Chinese manufacturers such as Sicc Co and EpiWorld International are gaining ground with inexpensive wafers, which are thin slices of semiconductor material used to make customers are also grappling with tariff-induced uncertainty, with General Motors trimming its 2025 profit forecast, while Mercedes-Benz had pulled its earnings outlook for departing CFO Neill Reynolds said in a post-earnings call that the company may need to pursue in-court options to renegotiate its debt and that "going concern" language could be added to the quarterly included the risk of "substantial doubt about the company's ability to continue as a going concern" in another regulatory filing on company will cut its senior leadership team by 30%, its executive chairman Thomas Werner said. It forecast 2026 revenue below market shares have fallen about 33% so far this year, after losing about 85% of their value in 2024."Difficulties refinancing the debt, continued cash burn and slowing demand in materials increased the specter of bankruptcy and will depress the stock for the foreseeable future," Charter Equity Research was set to lose more than $150 million from its market value of $689.2 million, if losses said it expects to receive $600 million of cash tax refunds during fiscal 2026 under the Chips and Science the future of the Biden-era legislation that promised subsidies for domestic chip manufacturing remains uncertain after U.S. President Donald Trump's administration called on lawmakers to repeal the federal funding.
