Aston Martin at risk of takeover as slump worsens

Aston Martin stocks are now worth less than a quarter of what they were when the British car-maker went public 10 months ago, raising the real prospect of a takeover.

Following a plunge of 22 per cent on Wednesday, the share price dropped to just £4.24 ($A7.52) late last night, compared to £19 ($A34) when Aston Martin was floated back in October.

The share price nosedive and the need to raise more funds to continue operating has provoked speculation the car-maker is about to be snapped up.

Addressing rumours, CEO Andy Palmer told reporters: "It's been a tough time for all of us, but we still believe that what we've done is the right thing for the brand."

Aston Martin has already announced that it had slashed its sales outlook by more than 10 per cent following a first-half loss of £35.2 million ($A62.5m).

Last year over the same period the car-maker made a £64.4 million ($A114m) profit.

Adding to the share price woes, Aston has announced that as well as lower vehicle production numbers, the anticipated costs of expanding its range will be higher.

Since July 24, when it issued a profit warning, the cost of shares in the car-maker have halved, with Aston Martin's valuation dropping from £1 billion ($A1.8b) to around the same level as the car-maker's debt of £723 million ($A1.3b).

It's now rumoured buyers like InvestIndustrial, which is already one of the largest stakeholders in the brand, might host a takeover bid.

Now, more than ever, both boss Palmer and existing shareholders are banking on the car-maker's first SUV, the DBX, being a success and capable of helping raise total sales to 14,000 by 2023.