Shares of Microvast Holdings, Inc. ( MVST ) are falling Tuesday after the lithium ion battery company reported mixed third-quarter earnings.

MVST is taking a hit from negative sentiment. Stay ahead of the curve here.

What To Know: Microvast’s adjusted earnings per share missed analyst estimates of 5 cents, instead coming in at 4 cents. The company brought in $123.29 million in sales, beating the estimate of $120.02 million and setting a new quarterly record.

The stock appears to be moving lower on the earnings miss, last down about 8%, according to Benzinga Pro.

For its 2025 outlook, Microvast ( MVST ) affirmed its initial target revenue growth of 18% to 25% year-over-year and revenue guidance of $450 million to $475 million. The company also updated its gross margin outlook for full-year 2025 from 32% to a target range of 32% to 35%.

“While we booked a GAAP net loss of $1.5 million, we also delivered a positive adjusted EBITDA of $21.9 million, demonstrating the growing demand for our innovative battery solutions and the tangible results of our focus on profitability and operational excellence,” said Yang Wu, Microvast's ( MVST ) CEO.

The company expects to finish installation and commissioning of production equipment for the Huzhou Phase 3.2 expansion by year-end with initial production to follow. Microvast ( MVST ) said it will also maintain focus on attracting new customers and broadening its presence in new market segments.

MVST Analysis: Microvast’s stock is trading significantly above its 200-day moving average of $3.01, approximately 50.4% higher, which typically indicates a longer-term bullish sentiment. However, the relative strength index (RSI) sits at 49.46, signaling a neutral position that may suggest a lack of momentum in either direction. This neutral RSI, combined with the recent price drop, could indicate a potential consolidation phase ahead.

Support for Microvast ( MVST ) is currently identified at $4.32, which aligns closely with the 50-day moving average, providing a critical level for traders to watch. If the stock fails to hold this support, it could open the door for further declines, potentially testing lower levels. On the upside, without a defined resistance level, the psychological barrier of $5.00 and the recent 52-week high of $7.12 may serve as key targets for any recovery.

MVST Price Action: Microvast ( MVST ) shares were down 8.63% at $4.55 at the time of publication on Tuesday, trading within its 52-week range of $0.17 to $7.12, according to Benzinga Pro.

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