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RIVERSIDE, Calif. - XCharge North America, a subsidiary of XCHG Limited (NASDAQ:XCH), has installed two dual-dispenser GridLink chargers at a new electric vehicle charging depot in Riverside, California. The facility, developed and operated by Gateway Fleets, serves medium-duty fleets and independent FedEx operators. According to InvestingPro data, XCharge’s parent company maintains impressive gross profit margins of 50% and holds more cash than debt on its balance sheet, though the company’s current market capitalization stands at $85.55 million.
The GridLink chargers feature battery-integrated technology that stores 430 kWh of energy collected during off-peak hours, allowing for charging during peak times without incurring higher demand charges. This approach helps reduce overall energy costs while providing reliable charging for last-mile delivery vehicles. Despite showing revenue growth of 9.59% in the last twelve months, InvestingPro analysis indicates the company faces profitability challenges, with negative EBITDA of $11.8 million.
"We chose to partner with XCharge NA because their solution is easy to operate, dependable under daily load, and built with commercial fleets in mind," said Bruce Pflaum, CEO and Founder of Gateway Fleets, according to the company’s press release.
The deployment comes as California maintains its commitment to zero-emission vehicle mandates despite policy uncertainties. The state requires 100% zero-emission vehicles for medium and heavy-duty vehicles by 2040.
Gateway Fleets, which recently received investment from Partners Group, offers flat-rate EV leasing combined with charging infrastructure to help operators lower monthly costs and comply with California’s regulations without needing to own or manage charging equipment.
Aatish Patel, co-founder and president of XCharge NA, stated that the partnership demonstrates how the company’s battery-integrated technology helps "optimize existing electrical infrastructure in locations that are grid limited."
The charging solution addresses challenges faced by utilities struggling to meet growing power demands for electric vehicles, particularly in areas with limited grid capacity. With a strong current ratio of 2.08, XCharge appears well-positioned to fund its expansion plans. Discover more insights and 8 additional exclusive ProTips for XCH by subscribing to InvestingPro.
In other recent news, XCharge North America has entered into an exclusive partnership with Roady’s Truck Stops, the largest chain of independent truck stops in the United States. XCharge NA will serve as the sole provider of electric vehicle charging equipment and solutions for over 500 Roady’s locations nationwide. This collaboration aims to offer adaptable charging solutions suitable for various business models and site configurations. XCharge NA’s offerings include the GridLink charger, designed to enhance the resilience of the North American grid, and a new Virtual Point of Sale system developed with Stripe, Inc. The partnership is expected to attract new customers and drive revenue for small business owners, especially during economic uncertainties. John Fechik, a consultant to Roady’s, emphasized the importance of this partnership for small business owners. Aatish Patel, co-founder and president of XCharge NA, highlighted the opportunity to develop EV infrastructure that supports both EV drivers and the electrical grid. This announcement underscores the increasing relevance of EV charging infrastructure for the competitiveness and sustainability of businesses in the transportation sector.
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