CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Aston Martin share price collapses as more cash needed to tackle Covid-19 ‘uncertainty’

The luxury carmaker saw its share price fall 68% in early morning trading after admitting that it will likely need more cash despite only recently receiving a bailout by billionaire Lawrence Stroll.

Aston Martin Lagonda saw its share price fall 68% in early morning trading after admitting that it will likely need more cash despite only recently receiving a bailout by billionaire Lawrence Stroll.

The luxury carmaker told investors that it may need to access high-interest notes, even after being given a £536 billion cash injection by a group led by Stroll.

The news sent shares plummeting, with the stock trading at 110p a share as of 13:00 (GMT) on Wednesday. Aston Martin kicked off the year trading at 547p, with the stock losing close to 80% of its value year-to-date.

‘I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda,’ Stroll said in a statement. ‘This is a very significant capital raise of £536m - due to be made by my consortium and other shareholders at a very challenging time.’

Stroll had hoped that the capital raise he and his co-investors provided would give Aston Martin the ‘necessary stability to reset the business for its long-term future’, but it appears the carmaker remains in a precarious position.

Looking to trade Aston Martin Lagonda and other UK stocks? Open a live or demo account with IG.

Covid-19 has created ‘increased and unquantifiable uncertainty’

Aston Martin admitted that it doesn’t have enough working capital according to the European Securities and Markets Authority rules, because the Covid-19 pandemic has put ‘increased and unquantifiable uncertainty’ on the business.

In mid-March, the company told investors how the virus had significantly impacted demand across all markets, particularly China, with the pandemic expected to hurt its financial performance in 2020.

In response, Aston Martin temporarily suspended production at its UK manufacturing facilities until 20 April and is working closely with suppliers and business partners to have production meet demand once the suspension is over.

You can go long or short Aston Martin Lagonda with IG using derivatives like CFDs.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

React to global volatility

Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
  • Round-the-clock assistance – our highly skilled teams are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.