Massimo Group (NASDAQ:MAMO) saw its stock plunge 17.1% in premarket trading Thursday after announcing the creation of a dedicated robotics division—news that appeared to raise doubts among investors about the company’s strategic trajectory.
The powersports and electric vehicle manufacturer said it has launched Massimo AI Technology, Inc., a wholly owned subsidiary aimed at developing robotic systems for industrial automation and logistics. The company described the move as a “measured and strategic step” toward expanding into global markets for both industrial and service robotics.
Massimo noted that the robotics programs are still in the early stages of research and development, and the company did not provide any estimates regarding when products might reach commercialization. The new unit is currently working to build an integrated supply platform, including key mechanical and electrical systems, control hardware, and sensor technologies that will eventually support its robotics offerings.
David Shan, Founder, Chairman, and CEO of Massimo Group, characterized the initiative as “a natural extension” of the company’s existing strengths. “Our experience in electric systems, manufacturing, and global operations provides a strong foundation as we begin building the next phase of our technology portfolio,” Shan stated.
According to Massimo, the new division is intended to broaden the company’s technological footprint, create potential entry paths into high-growth automation markets, and diversify longer-term revenue streams.
Despite these ambitions, the steep share-price decline suggests many investors are wary—possibly concerned about the capital demands, competitive landscape, or strategic risk tied to shifting into the robotics sector, an area outside Massimo’s established expertise.