What's Going On With Velo3D Stock?
Velo3D, Inc. (NASDAQ: VELO) shares dropped sharply Tuesday morning despite announcing a new contract from a U.S. Defense prime contractor.
- Velo3D shares are retreating from recent levels. Why is VELO stock falling?
Velo3D Announces Full Rate Production Contract
Velo3D on Tuesday announced it was awarded an $11.5 million multi-year full rate production contract from a key U.S. defense contractor, in support of a high-profile national security program.
The contract leverages Velo3D’s Rapid Production Solution (RPS) and industrial-scale Laser Powder Bed Fusion (LPBF) printing capability to produce high-performance, critical components quickly and at a lower cost than the same components produced using traditional subtractive manufacturing methods.
“Velo3D is absolutely honored to continue supporting key industry partners delivering critical programs that strengthen our national security,” said Arun Jeldi, CEO of Velo3D.
“This multi-year full rate production contract signals the trust and confidence our customers have in Velo3D to scale programs rapidly through faster part delivery, enhanced reliability and the surge capacity needed to meet evolving demands of their customers.”
The news comes after the U.S. Army Ground Vehicle Systems Center (GVSC) recently tapped Velo3D as the first qualified 3D-printing vendor in order to accelerate additive manufacturing for ground vehicles. This collaboration aims to enhance the production capabilities and technological advancements in 3D printing, which are critical for modernizing military equipment and boosting national security.
Despite these positive developments, the market’s current sentiment towards tech stocks has led to increased volatility. The significant short interest of around 20.5% in Velo3D is also likely contributing to the recent volatility in shares.
VELO Stock Dips Despite Positive Partnership News
VELO Price Action: Velo3D shares were down 13.79% at $9.63 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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