Nxu Plunges 11.24% Amid Auditor Concerns, Reverse Split

On March 28, 2025, Nxu's stock price dropped by 11.24% in pre-market trading, signaling a significant shift in investor sentiment.

Nxu, Inc. recently faced a major setback as its auditor, Prager Metis CPAs, LLC, expressed doubt about the company's ability to continue as a going concern. This concern was raised in the company's 10-K filing for the period ending December 31, 2024, which included an unqualified opinion from the auditor. This news has likely contributed to the recent decline in Nxu's stock price, as investors become wary of the company's financial stability.

Adding to the uncertainty, Nxu, Inc. announced a 1-for-20 reverse stock split. This move is often seen as a last-ditch effort to boost the stock price by reducing the number of shares outstanding, which can make the stock appear more valuable on a per-share basis. However, such actions can also signal underlying financial troubles, further fueling investor concerns.