GREENVILLE, SC - Phoenix Motor Inc. (NASDAQ:PEV), known under the brand name PhoenixEV, has recently delivered five new 40' ZX5 battery electric buses to the University of California, Irvine (UCI), making further inroads into the educational sector with its sustainable transportation solutions. The delivery, completed in May 2024, is part of UCI's ongoing commitment to an eco-friendly campus, with its electric fleet operational since January 2018.
UCI, recognized for being the first university in the United States to convert its bus fleet entirely to electric, has now expanded its fleet to 25 buses. These buses have collectively covered over 1.18 million miles, with the 2023-2024 academic year recording 1.46 million riders and an average of 3,555 miles driven weekly.
UCI's electric buses are powered by an advanced microgrid, featuring an internal utility tunnel loop connected to a campus substation, which supports the Anteater Express bus service and the broader community of over 30,000 individuals.
The operational cost for charging the electric fleet is notably economical at $0.37 per mile, a significant reduction from the $1.53 per mile it would cost with diesel-powered buses. This cost-efficiency underscores the economic benefits of transitioning to electric vehicles alongside the environmental advantages.
PhoenixEV's CEO, Denton Peng, expressed pride in the partnership with UCI, lauding the university's dedication to sustainable student transportation.
PhoenixEV's engagement with educational institutions like UCI aligns with its broader mission to reduce greenhouse gas emissions. UCI maintains a pledge that at least 50% of its fleet acquisitions will be zero or low-emission vehicles.
Phoenix Motor, the parent company, continues to be a notable player in the electric vehicle industry, offering a range of commercial electric vehicles including transit buses, shuttle buses, school buses, and delivery trucks through its PhoenixEV brand, and light-duty EVs through its EdisonFuture brand.
In other recent news, Phoenix Motor Inc. has made several significant developments. The company has projected record Q1 revenue of $9.4 million, a substantial increase from the previous year's $1.8 million, attributed to the acquisition of Proterra's Transit business. However, the integration process has caused delays in regulatory filings, leading to the rescheduling of the Q1 2024 earnings call to August 15, 2024.
Phoenix Motor also announced a record surge in Q2 revenue, expecting figures between $14 million and $16 million. The company launched a new brand, PhoenixEV, merging with the recently acquired Proterra transit bus division, aiming to strengthen its position in the North American sustainable transportation market.
The company received a Nasdaq compliance warning due to a delayed quarterly report and was given 60 days to submit a plan to regain compliance. Amid these developments, Phoenix Motor's CEO, Xiaofeng Denton Peng, was suspended due to allegations of a breach of fiduciary duty and unauthorized related-party transactions. As a result, former CFO J. Mark Hastings was appointed as interim CEO.
InvestingPro Insights
Phoenix Motor Inc. (PEV) continues to make strides in the electric vehicle sector, as evidenced by the recent delivery of electric buses to UCI. While the company's commitment to sustainable transportation solutions is clear, a look at the financial health and market performance through InvestingPro data provides additional context for investors.
InvestingPro Data indicates a market capitalization of $16.14 million, reflecting the company's size and market value as of the last twelve months ending Q4 2023. Despite the positive news about fleet expansions, the company has a negative P/E ratio of -0.56, suggesting that it is not currently profitable. Additionally, with a significant negative revenue growth of -27.9% over the last twelve months, it indicates that the company's sales are decreasing, which could be a concern for potential investors.
One of the InvestingPro Tips highlights that PhoenixEV may have trouble making interest payments on its debt, which is a crucial factor for investors to consider, especially in the context of the company's financial sustainability. Moreover, the company's stock price movements are quite volatile, which can be a risk for investors looking for stability.
However, it's worth noting that the company has experienced a significant return over the last week, with a 12.47% price total return. This short-term performance could be appealing to some investors, although the overall trend over the last six months shows a price total return of -67.68%, indicating a longer-term downward trajectory.
For those interested in a deeper analysis, InvestingPro offers additional insights. There are 15 more InvestingPro Tips available for Phoenix Motor Inc., which can be accessed at https://www.investing.com/pro/PEV. Investors can also take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a comprehensive suite of tools to make informed decisions.
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