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Why Phoenix Motor Shares Are Surging Premarket Monday

Lekha Gupta
April 15, 2024

Phoenix Motor Inc. (NASDAQ:PEV) shares are trading higher after the company reported solid revenue guidance for first-quarter FY24.

The company expects revenue of $8 million-$9 million, representing a significant increase from the $1.8 million recorded in the first quarter of 2023.

The considerable revenue increase is due to several strategic initiatives undertaken over the past year. This includes acquiring Proterra’s transit business and launching new products designed to meet the evolving needs of the commercial transportation sector.

Denton Peng, CEO of Phoenix Motor, said, “Our ability to significantly increase revenue is a testament to our innovative product line, the growing market demand for electric vehicles, and continued favorable government policies supporting electrification.”

“We are committed to leading the transition to sustainable transportation and believe our strategy aligns well with the increasing global emphasis on reducing carbon emissions.”

This month, Phoenix Motor disclosed its plans to create an Artificial Intelligence (AI) development center in Silicon Valley, California

In March, the company inked an Integration Agreement with InductEV to develop software, hardware, and, cooling and electrical systems integration of InductEV’s wireless charging pads with its zero-emission drive systems

Price Action: PEV shares are up 16.4% at $0.85 premarket on the last check Monday.

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