Electrical-vehicle startup Arrival warned on Tuesday that it might not have sufficient money to maintain its enterprise going towards the tip of subsequent 12 months.

The corporate mentioned it has been exploring choices to sort out the fund crunch and hinted at cost-cuts that would have a sizeable impression on its workforce within the UK.

Arrival’s transfer to “right-size” additionally comes because it shifts focus to the bigger U.S. market, with an eye fixed on incentives from the Inflation Discount Act.

EV startups that promised to disrupt the automotive business with novel manufacturing strategies and merchandise are scrambling to maintain a lid on prices attributable to supply-chain points and rising uncooked materials costs.

“We’re actively engaged in capital elevating … we have had some preliminary discussions with a handful of events,” Chief Monetary Officer John Wozniak mentioned in a post-earnings name.

It will take about six months for funding to materialize given the macroeconomic surroundings, he mentioned.

The corporate, which posted an even bigger third-quarter loss, expects to have sufficient money to fund the enterprise into the third quarter of subsequent 12 months.

“We are going to use money readily available of $330 million and look to safe new funds to attain our targets in the USA,” mentioned CE Denis Sverdlov.

In 2020, the corporate obtained an order for 10,000 electrical vans from United Parcel Service, with the choice for a further order of 10,000 items.

Arrival’s web loss widened to $310.3 million within the third quarter from $30.6 million a 12 months earlier.

The corporate’s U.S.-listed shares had been buying and selling at an all-time low of 36 cents.