TEL AVIV - Medigus Ltd. (NASDAQ:MDGS), an Israel-based technology firm, announced Wednesday that its electric vehicle (EV) joint venture, Revoltz Ltd., has completed production of its first batch of 50 micro-mobility electric vehicles, named PORTO. This milestone marks a significant step for Revoltz as it gears up to deliver these units in line with a distribution agreement aimed at penetrating the Israeli last-mile delivery market.
The agreement, established in 2023 with a premier distributor in Israel, is valued at $2.7 million in revenue and sets a target of selling 150 vehicles within the first year. It also includes service and maintenance provisions for the PORTO vehicles, ensuring support and longevity for customers.
With a range of 100 km per charge and a 250L delivery payload, the PORTO is designed to meet the demands of urban delivery services, offering the capacity of a small hatchback car but with greater maneuverability in tight city spaces.
Revoltz, 19.9% owned by Medigus' subsidiary Fuel Doctor Holdings, Inc., which holds a 67.15% stake, positions the PORTO as a blend of functionality, sturdy design, and agility. The vehicle features an advanced tilting suspension mechanism for stability under full loads and evenly distributed cargo weight for a safe and confident ride.
Medigus operates in various sectors including advanced medical solutions, digital commerce, and electric vehicle markets, with affiliates such as Polyrizon Ltd., Gix Internet Ltd., Jeffs' Brands Ltd., Eventer Technologies Ltd., Charging Robotics Ltd., and Revoltz Ltd.
The press release from Medigus contains forward-looking statements regarding the PORTO's market potential and the company's expectations. However, these are subject to risks and uncertainties, and actual results may differ materially from those projected.
InvestingPro Insights
As Medigus Ltd. (NASDAQ:MDGS) makes strides with its electric vehicle venture Revoltz Ltd., it's important to look at the company's financial health and market performance to understand its potential. With a market capitalization of just over $5 million, Medigus is a small-cap company that has seen significant revenue growth over the last twelve months as of Q2 2023, with an increase of 158.37%. This growth is a positive signal for investors interested in the company's expansion into new markets like EVs.
However, it's not all smooth driving for Medigus. According to InvestingPro Tips, the company is quickly burning through cash and analysts do not anticipate it will be profitable this year. Additionally, Medigus is trading at a low revenue valuation multiple, and its valuation implies a poor free cash flow yield. These factors suggest that while the company is growing its revenue, it is facing challenges in terms of profitability and cash management.
Another noteworthy point is that Medigus' stock is trading near its 52-week low, which may indicate a potential entry point for investors who believe in the company's long-term growth prospects, especially considering the recent developments with the PORTO electric vehicle. With Medigus not paying dividends to shareholders, the focus for investors is likely on capital gains rather than income.
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