Cyngn Inc. (NASDAQ:CYN), the manufacturer of AI-powered autonomous driving machines, has not only lost stock, but is almost wiped out. Over the past year, CYN stock has lost a significant 99% of its value.
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Currently, the company is implementing a 500-500 reverse stock split on a large scale to avoid being kicked off from the Nasdaq. That is, they were combined into one for every 500 shares, and the stock price was boosted with paper alone.
Reverse stock splits are often considered red flags because they artificially inflate the stock price without improving the company’s basics. Naturally, CYN’s shares fell an additional 45% since the reverse split, as they thought there was little reason for investors to stick.
So is this the end of the road? Or are there any turnaround opportunities? Let’s take a closer look.
Latest technological breakthroughs
Cyngn made some noise in a DriveMod system that uses Nvidia’s (NASDAQ: NVDA) Advanced Computing to drive autonomous industrial vehicles. This creation has caught the eye of investors, especially in real-world applications such as autonomous forklifts and taggers. An important milestone was our partnership with Arauco. This ordered 100 DriveMod Forklifts, which demonstrates the practical value of Cyngn’s technology.
Financial challenges and fundraising
Despite the success of its technology, Cyngn faces economic hurdles. As highlighted above, over the past year, its stock price has plummeted 99%, making the threat of delisting real. However, in early 2025, CYNGN secured $33 million in funding. This was essential for expanding production and commercial expansion. This financial boost is key to keeping CYNGN’s growth plan on track.
What’s next for Cyngn?
CYNGN aims to solidify its position in the autonomous vehicle industry with new funding, strong partnerships and innovative technologies. The challenges remain, but the company’s recent actions show that its focus is on long-term growth. With all this in mind, to better understand Cyngn’s goals for 2025, all eyes will appear in the company when you disclose your revenue report on March 19th.
With AI generally becoming a part of everyday life, Cyngn needs to prove that its fundamentals are suitable for competing in this ever-crowded industry.
