Robbins LLP is Investigating Allegations that Microvast Holdings, Inc. (MVST) Misled Investors Regarding its Ability to Reach its Margin Targets

Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Microvast Holdings, Inc. (NASDAQ: MVST) securities between April 1, 2025 and March 16, 2026. Microvast purports to design, develop, and manufacture “advanced specialized battery technologies”, primarily for use in electric commercial vehicles and energy storage systems (“ESS”).

The Allegations:

According to the complaint, during the class period, defendants announced the expansion of its manufacturing facility located in Huzhou, China, dubbing the initiative “Huzhou Phase 3.2”, claiming that its increased production capacity would be online before the end of 2025. Defendants likewise advised investors to expect improved margins, touting a supposed “strategic repositioning away from low-margin segments” and a new “focus . . . towards more profitable, higher-value opportunities”. Notwithstanding, plaintiff alleges that defendants failed to disclose that (i) due to, inter alia, inventory management issues and delays in commercial vehicle rollouts by Microvast’s customers, defendants had overstated Microvast’s ability to reach its margin targets, and (ii) defendants overstated Microvast’s ability to complete the Huzhou Phase 3.2 expansion by the end of 2025.

A series of disclosures, after which Microvast's stock declined, revealed the truth about the Company.  Microvast's final disclosure occurred on March 16, 2026, it reported its financial and operating results for the quarter and year ended December 31, 2025. Among other items, Microvast reported that gross margin declined to approximately 1% for the quarter, down sharply from approximately 36% for the same period in the prior year, which the Company attributed to inventory impairment charges arising from “specialized ESS components”. Microvast also reported revenue of $96.5 million for the quarter, representing a 15% year-over-year decrease and falling well short of the consensus estimate of $136.4 million. Microvast attributed this result to “regulatory shifts in South Korea and delays in customer platform ramp-up” in Europe, the Middle East, and Africa.  On this news, Microvast’s stock price fell $0.79 per share, or 34.2%, to close at $1.52 per share on March 17, 2026.

What Now: You may be eligible to participate in the class action against Microvast Holdings, Inc.  Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.