GREENVILLE, SC - Phoenix Motor Inc. (NASDAQ:PEV), known for its electric vehicle (EV) innovations in the commercial sector, has announced the upcoming delivery of four all-electric transit buses to the University of California San Diego. Scheduled for early 2025, these 35-foot electric buses are part of the university's initiative to decarbonize last mile transportation.
The integration of PhoenixEV's buses into UC San Diego's fleet will increase its electric fleet to 20 percent, contributing to the university's broader sustainability efforts and commitment to complete decarbonization by 2045. The addition of these vehicles is expected to reduce particulate emissions on campus and the surrounding neighborhoods, aligning with the institution's environmental objectives.
Denton Peng, CEO of PhoenixEV, expressed the company's enthusiasm for supporting UC San Diego in its sustainability endeavors, noting that this marks the third University of California campus to adopt their zero-emission shuttles and transit buses.
Phoenix Motor has positioned itself in the EV market with a focus on heavy-duty and medium-duty commercial electric vehicles, including transit buses, shuttle buses, school buses, and delivery trucks under its PhoenixEV brand. Additionally, it seeks to cater to the light-duty EV market through its EdisonFuture brand.
The company's forward-looking statement included in the press release cautions about potential risks and uncertainties that may affect future results, emphasizing that the statements are based on current expectations as of the date of the release. The risks outlined include the need for additional capital, the growth of product demand and revenue, profitability, supply chain dependencies, and broader economic and market conditions.
This news is based on a press release statement and reflects the company's latest step in expanding its footprint in the electric transportation sector, particularly within academic institutions.
In other recent news, Phoenix Motor Inc. has been making considerable strides despite facing potential delisting from Nasdaq due to non-compliance with the exchange's minimum bid price requirement. The company reported a record-breaking Q1, with net revenues of $9.4 million and net income of $14.8 million. These impressive earnings are largely attributed to the acquisition of a leading zero-emission bus manufacturer, which has allowed Phoenix Motor to secure a 40% market share in North America's electric transit bus market.
Phoenix Motor has also seen its total assets grow to $78.7 million, meeting Nasdaq's listing standards. The company has a robust order backlog of $200 million, which is expected to significantly contribute to future revenues. In light of these developments, Phoenix Motor was granted an extension until April 7, 2025, to regain compliance with Nasdaq's minimum bid price requirement.
In a strategic move to enhance its innovation capabilities, Phoenix Motor has partnered with the Bay Area Founders Club to establish an Artificial Intelligence development center in Silicon Valley. This partnership is aimed at advancing Phoenix Motor's initiatives in electric and autonomous bus technologies. The company continues to explore options to regain compliance with Nasdaq's requirements while also focusing on its growth in the electric transit bus market.
InvestingPro Insights
Phoenix Motor Inc.'s recent contract with UC San Diego aligns with its strategic focus on the commercial EV sector, particularly in transit and shuttle buses. This move could potentially boost the company's revenue, which has shown impressive growth. According to InvestingPro data, Phoenix Motor's revenue grew by 97.81% over the last twelve months as of Q1 2024, with a remarkable quarterly revenue growth of 428.92% in Q1 2024.
However, investors should note that despite this growth, the company faces financial challenges. An InvestingPro Tip indicates that Phoenix Motor is "quickly burning through cash," which could be a concern given the capital-intensive nature of the EV industry. This is further supported by the company's operating income margin of -167.35% for the last twelve months as of Q1 2024, suggesting significant operational costs.
Another InvestingPro Tip highlights that the stock "generally trades with high price volatility." This is evident in the company's recent stock performance, with a strong 70.04% return over the last month, but a -47.47% return over the past year. Such volatility may present both opportunities and risks for investors.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Phoenix Motor Inc., providing a more comprehensive view of the company's financial health and market position.
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