Phoenix Motor Inc. (PEV) announced strong second-quarter results on Thursday, highlighting a dramatic surge in revenue and a shift towards profitability. The company’s net revenue climbed to $12.03 million, a significant increase from the $1.16 million recorded in the same period last year. This impressive growth is largely attributed to Phoenix Motor’s strategic focus on the electric transit bus market, which is now at the heart of their operations.
The company’s commitment to this sector is evident in recent developments. In May 2024, Phoenix Motor delivered five 40′ ZX5 battery electric buses to the University of California, Irvine (UCI), demonstrating its ability to meet the growing demand for sustainable transportation solutions in the academic sector. Furthermore, Phoenix Motor secured a contract to supply four all-electric transit buses to the University of California, San Diego, with deliveries scheduled for early 2025.
The financial performance reflects this positive trajectory. Gross profit for the quarter reached $1.83 million, a stark contrast to the gross loss of $(0.06) million recorded in the prior year quarter. Earnings per share (EPS) also saw an improvement, climbing to $(0.06) from a loss of $(0.15) in the previous year’s period. As of June 30, 2024, Phoenix Motor boasted $1.40 million in cash and cash equivalents, demonstrating a strong financial position.
Denton Peng, CEO of Phoenix Motor, expressed his satisfaction with the results, stating, “This success is largely attributed to the rapid integration of our new transit segment, which currently forms the cornerstone of our operations.” Peng added, “With the electric vehicle market continuing to grow, we believe Phoenix Motor is well-positioned to meet the rising demand for clean energy solutions, creating sustainable value for our shareholders and driving long-term growth.”
Despite these positive developments, PEV shares closed down 3.6% at $0.44 on Friday. This dip could be attributed to various factors, including market sentiment and broader investor caution. While the company is clearly on a growth trajectory with its focus on electric transit, the overall market conditions may be impacting investor confidence.
