The Analysts of Taking Stock with Kalilah Reynolds say Jetcon’s pivot from used cars to solar equipment is a smart move as the used car industry continues to take a beating from the economy.

The company’s revenues fell 27% to $184 million, down from $251 million for the same period last year. The company recorded a net loss of $8.2 million, mainly due to the sale of 10 vehicles from its EV fleet.

According to Jetcon, the vehicles were haemorrhaging value and were sold below market value. The company said that had the vehicles sold for market value, the profit would have been $4.2 million.

Business Journalist, David Rose, explained that Jetcon’s business is being heavily impacted by the high interest rate environment.

“Higher rates mean less people are going to be able to qualify for used car deals. And, whereas  I might have been able to afford a used car at 7% before, that might not be the case now that I have to be paying probably 10%  or 11% as my interest rate,” he said.

Jetcon also cited higher interest rates as one of its current challenges. The company said that it believes interest rates will come down, but it doesn’t expect to see an uptick in business until that happens.

Founder of Wealth Watch JA, Julian Morrison, also noted that the used car market is oversaturated causing a glut of vehicles on the market.

“The industry was already very crowded because the barrier to entry is fairly low and we know it’s a very popular market for money laundering. So many persons who are involved in illicit activities create a car mart and make it seem as if they’re a car dealer,” he added.

He said that this added competition, in addition to the high interest rate environment is hitting directly at Jetcon’s bottom line.

The stock’s price has remained in the $1.05 range for the past three months.