Ezgo Technologies Shares Plunge 2.52% in 10-Day Slide, 61.94% Drop as Reliability Issues Spur Investor Fears

Ezgo Technologies (EZGO) shares fell 2.52% on Monday, marking the 10th consecutive trading day of declines and a 61.94% drop over the past 10 days. The stock hit its lowest level since April 2024, with no intraday price movement to offset the prolonged weakness. The sustained sell-off reflects growing concerns about the company’s core product reliability and operational challenges.

Recurring technical issues with Ezgo’s golf cart controllers have emerged as a critical factor undermining investor confidence. Users report frequent malfunctions, including sudden power loss, erratic speed fluctuations, and overheating, which disrupt operations and increase repair demands. These problems have led to heightened customer dissatisfaction, with some users citing repeated controller failures and compatibility issues when upgrading to lithium batteries. Such reliability concerns risk damaging the company’s reputation and could drive customers toward competitors, pressuring sales and market share.

High maintenance costs and complex repair requirements further amplify the challenge. Technical guides highlight the need for frequent inspections and diagnostics, placing a financial burden on users and potentially deterring new buyers. While Ezgo could capitalize on this demand by offering premium service packages or upgraded controllers, recurring failures suggest a lack of product durability. The reliance on third-party technicians for troubleshooting also raises questions about the company’s ability to provide seamless customer support, potentially eroding brand trust.

Environmental and usage factors exacerbate the problem, with reports of controller failures linked to moisture exposure, vibration, and poor grounding. These vulnerabilities limit the product’s suitability for harsh conditions, potentially restricting market expansion in regions with extreme weather. Meanwhile, the financial implications of repeated repairs and warranty claims could strain profitability, particularly in price-sensitive markets where customers may avoid high-maintenance products.

Despite these challenges, Ezgo faces opportunities to innovate. Addressing compatibility issues with modern upgrades, such as lithium batteries, could attract performance-oriented buyers seeking enhanced speed and torque. Expanding customer support services or partnering with repair providers might also improve retention. However, without significant product improvements and proactive customer engagement, the company risks further reputational damage and prolonged stock weakness as technical and operational hurdles persist.