Zapp Electric Vehicles Group Limited (NASDAQ:ZAPP): When Will It Breakeven?

Zapp Electric Vehicles Group Limited (NASDAQ:ZAPP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Zapp Electric Vehicles Group Limited designs, manufactures, and sells electric vehicles. With the latest financial year loss of US$222m and a trailing-twelve-month loss of US$219m, the US$9.8m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Zapp Electric Vehicles Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Zapp Electric Vehicles Group

Zapp Electric Vehicles Group is bordering on breakeven, according to the 3 American Auto analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$11m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 118% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Zapp Electric Vehicles Group's upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Zapp Electric Vehicles Group is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of Zapp Electric Vehicles Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Zapp Electric Vehicles Group's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Valuation: What is Zapp Electric Vehicles Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Zapp Electric Vehicles Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Zapp Electric Vehicles Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.