AeroVironment Overestimated Electric Vehicle Adoption Rates; Reports Reduced Annual Revenue as a Result

4 years ago by Mark Kane 5

AeroVironment charging station

AeroVironment charging station

AeroVironment recently presented its last quarter and fiscal 2013 year-end results.

These results don’t paint a bright picture for the charging station provider.

AeroVironment charging station

AeroVironment charging station

AeroVironment’s revenue stream has shrunk, but the company, which is mainly focused on unmanned aircraft systems managed to stayed profitable for the fiscal year ($10.4 million net income). Sadly, the first quarter of 2013 brings $795,000 in net loss.

Why we should care? Well, because Tim Conver, AeroVironment chairman and chief executive officer said:

“Government contracting delays for unmanned aircraft systems combined with lower than expected electric vehicle adoption rates to reduce annual revenue by 26 percent compared to fiscal 2012. Despite these market headwinds, we maintained market leadership in each business area and strengthened our cash position by $11 million, further enhancing our ability to move quickly and decisively when growth opportunities arise.”

So, it seems that AeroVironment joins the majority of companies – automakers, battery manufacturers and charging manufacturers – that overestimated initial EV adoption rates.

AeroVironment is one of the leading infrastructure providers in the US with thousands of Level 2 stations and at least several dozens CHAdeMO DC fast chargers deployed to date.

Will sales grow this year to a level that could make AeroVironment happy? Maybe, but we think AeroVironment needs more orders for the profit-making DC quick-charge stations.

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5 responses to "AeroVironment Overestimated Electric Vehicle Adoption Rates; Reports Reduced Annual Revenue as a Result"

  1. Josh says:

    I hope the are spending some of that cash on a CCS add-on for their CHAdeMO stations already in service. Their unit has a blank panel on the site opposite to the CHAdeMO cable, so I hope it was already planned out. It would be easy to sell upgrades to their current customers when the CCS capable Spark EV and i3 roll out.

  2. Mark H says:

    “AeroVironment is one of the leading infrastructure providers in the US with thousands of Level 2 stations and at least several dozens CHAdeMO DC fast chargers deployed to date.”

    Level 2 >>> at home, the work place, hotels, and where the EV will be parked for 4+ hours >>> good

    Level 2 in urban locations >>>> not so good or at least with minimal impact for the investment. I take exception to cases such as those used to make a statement or awareness of EVs.

    “at least several dozen CHAdeMO DC fast chargers” >> needs to be on major routes or where EVs require 50%-80% charge in 2 hours or less.

    Its is more than just the slow introduction of the EV, it also has to do with the evolving charge practices of early adopters.

  3. vdiv says:

    Did they just overestimate the demand or did they underestimate the competition/supply? Quite a few folks were contemplating a home “charger” and went with one made by other than Aerovironment. For commercial installations it seems that the EVSE’s provided by the charging networks, ChargePoint, SemaConnect, GE Wattstation, etc. were preferred over the standalone models even when the network-capable models were installed as standalone.

  4. gigglehertz says:

    AV has the worst website of all the charge networks, it’s clunky, ugly, and mixed in with all their other military death drone stuff. They always struck me as a company existing solely on govt contracts, and making no serious effort to be a real retail service provider. I’ve assumed when the govt contract runs out on the WCGH in a couple of years that they would merge ops with or sell off their assets to one of the other networks. It’s too bad because I really love their equipment, it’s stood up well in the NW weather for the last year with the only problems being the L3 display which seems to have been worked out. Honestly if I didn’t live in a condo I’d already own one of their L2’s. Somebody needs to go after the condo/apt EVSE market more seriously, because that’s where the tech savvy younger generations are going.

  5. Bill Howland says:

    @Gigglehertz

    Well said…. It wasn’t until recently they lowered the price of their 30 amp l2 charger. ARe u intimately familiar with it? I find some nissan dealerships work with my Tesla Roadster, then others don’t. So I assume there’s an option. Do You know what it is?