Aston Martin Shares Tumble as Production Delays Lead to Higher Losses and Lower Volume Forecast

Q3 losses of £48.4m exceed expectations due to supply chain and software issues impacting DB12 deliveries, marking a setback for owner Lawrence Stroll's turnaround efforts. Aston Martin maintains its 2025 £2bn sales target despite the bleak forecast.

• Aston Martin's Q3 losses were larger than expected at £48.4m due to supply chain and software issues delaying DB12 deliveries, leading to a significant drop in the company's share price.
• The company has adjusted its sales target for the DB12 model this year to 6,700 cars, down from its initial target of 7,000 units.
• Despite the setbacks, Aston Martin remains confident in hitting its sales target of £2bn per year by 2025, driven by expected significant growth compared to last year and higher gross margin.
• 55% of the initial DB12 buyers are new to the Aston Martin brand, reinforcing the extraordinary demand for the new sports car despite production delays.
• The company's net debt decreased from £766m at the end of 2022 to £750m in Q3 2023, signifying ongoing efforts to reduce leverage and retire debt.

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