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ANAHEIM, CA - Phoenix Motor Inc. (NASDAQ:PEV), known for its medium-duty electric vehicles, has announced a strategic partnership with ADASTEC Corp., a company specializing in Level-4 automated driving software. This collaboration aims to develop 40-foot battery-electric buses with advanced autonomous capabilities, targeting the needs of modern public transit systems in North America. The announcement comes as Phoenix Motor, with a market capitalization of $14.64 million, has demonstrated remarkable revenue growth of 425% in the last twelve months. According to InvestingPro analysis, the company maintains a healthy current ratio of 2.19, indicating strong short-term liquidity position.
The partnership leverages PhoenixEV's expertise in manufacturing zero-emission vehicles and ADASTEC's Level-4 automated driving software, flowride.ai. The initiative responds to the growing demand for sustainable and efficient transportation solutions, combining electrification with automation to address issues such as emissions, operational efficiency, and labor shortages. While the company's stock has faced challenges, declining over 57% in the past year, InvestingPro data reveals 13 additional key insights about the company's financial health and market position. Subscribers can access the comprehensive Pro Research Report, part of the analysis available for over 1,400 US equities.
Denton Peng, CEO of Phoenix Motor Inc., stated that the partnership represents a significant advancement in intelligent transportation, positioning the company at the forefront of transit's future. Dr. Ali Peker, CEO of ADASTEC, echoed this sentiment, highlighting the strategic importance of the collaboration for expanding automated public transit in the United States.
The first vehicle from this partnership is expected to debut later in 2025, with demonstration pilots planned for early 2026. Several transit agencies are preparing to participate in these pilots, signaling a shift towards electric and automated public transportation solutions. Despite trading at a relatively low P/E ratio of 5.15, InvestingPro analysis indicates the company faces challenges with cash burn and debt management, factors that could impact the execution of these ambitious plans.
Phoenix Motor Inc. has established itself as a pioneer in the electric vehicle industry, producing a range of commercial products including transit and shuttle buses, school buses, and delivery trucks under the PhoenixEV brand. ADASTEC Corp., on the other hand, has made strides in Level-4 bus automation with international deployments and industry partnerships.
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements reflect the company's current expectations as of the date of the release, and actual results may differ. Factors that could affect outcomes include the company's ability to raise capital, grow demand for its products, and access necessary parts and materials, among other risks outlined in the company's SEC filings.
This news article is based on a press release statement from Phoenix Motor Inc. and does not constitute an endorsement of the company's claims.
In other recent news, Phoenix Motor Inc. has announced a strategic partnership with Beijing Guorun Venture Capital Co., Ltd. to create a 1 billion RMB (approximately USD 140 million) investment fund aimed at expanding electric vehicle manufacturing in China. Additionally, the company has secured a $6 million loan from J.J. Astor & Co. to enhance its production capabilities to meet the increasing demand for electric transit buses. In a move to innovate last-mile delivery, Phoenix Motor has launched a pilot program for autonomous delivery robots, complementing its existing autonomous vehicle projects. The company also announced a strategic partnership with Noodoe to advance zero-emissions transportation through innovative charging solutions. Furthermore, Phoenix Motor has postponed its Annual Meeting of Stockholders, with a new date yet to be determined. These developments reflect Phoenix Motor's ongoing efforts to strengthen its international presence and expand its portfolio of sustainable transportation solutions. Investors are encouraged to keep abreast of these updates through the company's SEC filings.
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