In 2024, when confidence in Microvast was very low, Wu provided a $25M convertible loan. A few months later, after stronger Q3 results and better margins, the stock moved sharply as sentiment improved.
Now the company is again in a low-trust environment. There are still real concerns: weak communication, uncertainty around Clenera, execution risk, and a history of missed expectations.
At the same time, Wu has now converted the full loan into shares instead of taking repayment. That does not remove the risks, but it does show he remains economically aligned with the company at a difficult moment. It is possible he sees something in the business that the market is not fully pricing yet, similar to when he originally provided the loan.
Including 2M shares held by his children, his beneficial common exposure is about 136,111,752 shares. At an MVST price of around $1.55, that stake is worth roughly $211M. For the common stake alone to be worth $1B, MVST would need to trade around $7.35/share. That is quite a motivation.
I would not call this a guaranteed repeat of November 2024. But the setup has some similarities: low expectations, insider alignment, and meaningful upside if some JV comes up.