Velo3D Stock Declines Amid Allegations of Misrepresentation by Morpheus Research
Velo3D Inc. shares fell nearly 10% after Morpheus Research claimed the company's ties with SpaceX are overstated. The investigation highlights concerns over Velo3D's defense pipeline and CEO credibility, suggesting potential risks for investors.
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Shares of Velo3D Inc. (VELO) experienced a decline for the fourth consecutive session, dropping nearly 10% before stabilizing 5% lower. Morpheus Research's report alleged that Velo3D exaggerated its relationship with SpaceX, claiming this association largely ended years ago, with no new purchases since 2022.
Furthermore, the report indicated that SpaceX has developed capabilities to manufacture its own machines under a 2024 IP licensing agreement. Morpheus also criticized Velo3D's defense and aerospace focus, labeling its pipeline as speculative and questioning the viability of its contracts. Concerns were raised regarding the reliability of Velo3D's printers compared to competitors EOS and Nikon SLM, suggesting that the company's growth strategy may not effectively address these challenges.
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