Aston Martin Lagonda Global Holdings PLC (LSE:AML) shares were the biggest faller on the FTSE 250 on Thursday morning following a report that the luxury car group is looking to raise funds, which analysts said "could significantly affect ownership".
The shares were down 14% to 415p by late morning on Thursday.
A new investor could potentially contribute more than £200mln, the report in trade title Autocar suggested.
It comes after the British supercar maker last month appointed former Ferrari chief executive Amedeo Felisa as chief executive as part of a boardroom shake-up, replacing Tobias Moers after less than two years in the job.
Following a tripling of its operating losses to £47.7mln, net debt rose 7% to £957mln but the company had cash of £404mln.
The report in Autocar said the fundraising was planned "to safeguard its future" but that with total debts including £1.2bn of outstanding bonds, bank drafts and loans, Aston Martin would be "unlikely to be able to raise funds by taking on more debt".
Analysts at Jefferies said, "details are vague and the company has not commented", noting that at its last closing market value of around £550mln a £200mln investment "could significantly affect ownership" including control by executive chairman Lawrence Stroll's Yew Consortium, which owns around a 21% stake.
For this year, Aston Martin said in May that it expects to deliver “significant growth” with an 8% rise in core volumes, which should increase adjusted earnings (EBITDA) by roughly 50%.
In the medium term, it is targeting production of 10,000 cars, £2bn revenue and £500mln EBITDA by 2024/25.
The Jefferies analysts said upcoming second-quarter results are "unlikely to reassure about liquidity", with sales expected to come in around 1,425 units, including 450 DBX, 15 Valkyries and 960 front-engine cars, generating revenue £266mln based on an £152,000 average selling price.
Gross profit margins are expected to be further eroded by rising raw materials prices, with disrupted supply chains across the industry also continue to impact on working capital with higher inventories and receivables resulting in forecast negative free cash flow of around £80mln, taking net debt to £1.035bn and gross liquidity to £325mln, incl circa £350mln of customer deposits.