Microvast (NASDAQ:MVST) Plunges 9.88% as Debt Burden Overshadows Breakeven Hopes

Microvast Holdings Inc. (NASDAQ:MVST) plummeted 9.88% in pre-market trading on December 15, 2025, signaling heightened investor concerns ahead of its projected breakeven timeline. Analysts have highlighted the company’s aggressive path toward profitability, with expectations of a final 2025 loss followed by a $33 million profit in 2026. This would require a 68% annual growth rate, underscoring the high-stakes nature of its turnaround strategy.

Despite the optimistic forecasts, Microvast’s leverage remains a critical risk factor. The firm’s debt-to-equity ratio of 115% far exceeds the 40% threshold typically considered sustainable, raising questions about its capital management capabilities. While analysts acknowledge the potential for rapid growth during an investment phase, the elevated debt burden increases vulnerability to operational delays or market volatility.

Investors are closely monitoring whether the company can meet its breakeven timeline while addressing structural challenges. The balance between scaling production and maintaining financial discipline will likely dictate long-term confidence in Microvast’s value proposition.