SHANGHAI - U Power Limited (NASDAQ:UCAR), a Chinese vehicle sourcing service provider with a market capitalization of $26.28 million, has announced the selection of its UOTTA battery-swapping technology by Treep Mobility Group S.A.C., a prominent Moto Taxi operator in Peru. The technology is designed for two-wheeler and three-wheeler electric vehicles and aims to facilitate the transition from traditional fuel-powered vehicles to electric models. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 2.19.
After a successful pilot deployment in Peru, which included two operational battery-swapping stations and a small fleet of electric vehicles, Treep Mobility is planning to convert its entire fleet to electric vehicles using the UOTTA technology. The company anticipates orders to surpass US$1 million.
Treep Mobility has endorsed the UOTTA model for its potential to maintain operational hours and revenue during the transition, while also reducing operating costs by 30-40% compared to fuel vehicles. The battery-swapping model is seen as a green and economical solution that aligns with environmental development trends.
UOTTA integrates AI technology through its cloud platform and station control systems to predict customer demand and optimize charging and swapping efficiency, aiming to enhance operational efficiency. The solution also uses operational data analysis to provide targeted solutions for vehicles and swapping stations.
Jia Li, Chairman and CEO of U Power, highlighted the significant market opportunity in Peru and South America, noting the growing number of electric two-wheelers and three-wheelers used in passenger transport and delivery services. Li expressed confidence that the partnership with Treep Mobility will encourage similar companies in South America to adopt the battery-swapping model, potentially leading to sustainable business growth for U Power. While the company has demonstrated impressive revenue growth of 473% in the last twelve months, InvestingPro analysis suggests the stock is currently undervalued, despite showing high price volatility. InvestingPro subscribers have access to 8 additional key insights about UCAR's financial health and market position.
U Power has been operating since 2013 and focuses on its proprietary battery-swapping technology, with one manufacturing factory in Zibo City, Shandong Province, China. The company's vision is to become a significant player in the EV market, primarily through its UOTTA technology.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Investors are encouraged to review factors that may affect the company's future results as outlined in U Power's filings with the U.S. Securities and Exchange Commission.
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