U Power to supply battery-swap stations to Portugal taxis

SHANGHAI - U Power Limited (NASDAQ:UCAR), a Chinese provider of vehicle sourcing services and electric vehicle (EV) battery solutions trading at $5.60 per share, has announced a partnership with Associação Nacional dos Transportes Rodoviários em Automóveis Ligeiros (ANTRAL), Portugal's national taxi association. According to InvestingPro data, the company has demonstrated impressive revenue growth of over 470% in the last twelve months, though it currently faces challenges with cash burn rate. This collaboration will introduce U Power's new UOTTA 8-slot compact battery-swapping station to the European market, with deliveries scheduled for the first half of 2025.

The UOTTA 8-slot station is designed for dense urban areas, requiring only 90 square meters of space, and is capable of servicing 30-50 vehicles daily. Its modular design allows for future expansion to meet the growing demand for EV solutions. While the company maintains a healthy current ratio of 2.19, InvestingPro analysis suggests the stock is currently undervalued, presenting potential opportunities for investors interested in the EV infrastructure sector. Li Jia, Chairman and CEO of U Power, highlighted the company's adaptable technology, which includes AI integration for station management and cloud platforms to enhance power consumption and operational efficiency.

U Power's swap stations offer an economical alternative to traditional fast-charging stations, particularly in European cities where space is at a premium. The company claims that their stations require less capital investment while serving the same number of vehicles.

Since its inception in 2013, U Power has been working towards becoming a significant player in the EV market, focusing on its proprietary UOTTA battery-swapping technology. The company operates one manufacturing factory in Zibo City, Shandong Province, China, and has developed two types of battery-swapping stations for compatible EVs.

The press release also contains forward-looking statements regarding U Power's expectations for the future. However, these statements come with the usual caution that they are subject to risks and uncertainties and that actual results may differ from those projected.

This announcement is based on a press release statement and reflects the company's efforts to expand its reach within the European EV market, emphasizing its commitment to providing innovative solutions for the electrification of taxi fleets in urban environments. With a market capitalization of approximately $19 million and significant recent stock volatility, investors can access detailed financial analysis and 12 additional ProTips through InvestingPro's comprehensive coverage of UCAR's performance and prospects.

In other recent news, U Power Limited has expanded its footprint to Peru, introducing its UOTTA battery-swapping technology to the market via a partnership with Treep Mobility Group S.A.C., a leading Moto Taxi operator in the country. Following a successful pilot deployment, Treep Mobility plans to convert its entire fleet to electric vehicles using U Power's technology, with anticipated orders exceeding US$1 million. The UOTTA model, designed for two-wheel and three-wheel electric vehicles, has been praised for its potential to reduce operating costs and align with environmental development trends.

The technology integrates AI through its cloud platform and station control systems to optimize charging and swapping efficiency. U Power's CEO, Jia Li, sees a substantial market opportunity in Peru and South America, with the growing adoption of electric two-wheelers and three-wheelers in passenger transport and delivery services. Li believes the partnership with Treep Mobility could catalyze similar companies in the region to adopt the battery-swapping model, fostering sustainable business growth for U Power.

Despite a remarkable revenue growth of 473% in the last twelve months and a strong balance sheet, InvestingPro analysis suggests U Power's stock is currently undervalued. These recent developments indicate the company's continued commitment to innovation and market expansion.

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