Phoenix Sells 6 All-electric Transit Buses to Raleigh Durham International Airport for Delivery Later this Month
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The acquisition of Proterra Transit by Phoenix Motor Inc. and the subsequent order from Raleigh Durham International Airport (RDU) for six zero-emission buses is a strategic move that positions Phoenix as a key player in the electric vehicle (EV) market for public transportation. This order, being the first since the acquisition, is indicative of the market's acceptance of Phoenix's expanded product line and signals potential growth in its market share.
From a market research perspective, the shift towards zero-emission transportation is gaining momentum due to increasing environmental concerns and regulatory support. Phoenix's alignment with these trends could lead to increased demand for their electric buses, particularly from entities looking to reduce their carbon footprint. The fact that RDU is a repeat customer also demonstrates customer satisfaction and brand loyalty, which are positive indicators for Phoenix's reputation and future sales prospects.
Phoenix Motor Inc.'s announcement of the new order can be expected to have a favorable impact on their financial performance. This sale not only generates immediate revenue but also strengthens the company's backlog, providing a more predictable stream of future income. The deal may also serve as a reference point for other potential customers, potentially leading to a multiplier effect in sales.
Investors should monitor Phoenix's ability to scale production and maintain profit margins with the increased volume. The cost efficiencies and economies of scale achieved through the acquisition of Proterra Transit will be critical in determining the long-term financial health of the company. Additionally, the market will be looking at Phoenix's next earnings report to assess the financial impact of this deal and any forward-looking statements regarding their EV segment's growth trajectory.
The procurement of zero-emission buses by RDU reflects a growing trend among transportation hubs to invest in sustainable solutions. As a sustainability analyst, it is noteworthy that Phoenix's fifth-generation 40' ZX5+ buses offer an environmentally friendly alternative to traditional diesel-powered buses, which can significantly reduce greenhouse gas emissions and pollutants.
Phoenix's commitment to electrification in the medium-duty vehicle market is not only a business opportunity but also a contribution to the broader goal of reducing the transportation sector's environmental impact. The long-term benefits of such investments include improved air quality and public health, as well as positioning Phoenix as a leader in the transition to a low-carbon economy. This move may also enhance Phoenix's brand image and appeal to environmentally conscious stakeholders, including investors who prioritize environmental, social and governance (ESG) criteria in their decision-making processes.
ANAHEIM, CA / ACCESSWIRE / March 6, 2024 / Phoenix Motor Inc. (NASDAQ:PEV) (the "Company" or "Phoenix"), a leading manufacturer of heavy-duty transit buses and electrification solutions provider for medium-duty vehicles, announced today that repeat customer Raleigh Durham International Airport (RDU) has placed an order for six zero emission Phoenix battery electric buses, marking Phoenix's first formal order after acquiring the Proterra Transit business line.
In 2023, RDU served a record of 14.5 million passengers and RDU will soon be receiving and serving passengers with Phoenix's fifth-generation 40' ZX5+ buses. The buses will be used to transport passengers to and from the park and ride lots and airport terminals at RDU. Brian McLean, RDU's Fleet Manager, said "RDU is excited about introducing more EV technology into the fleet, which aligns with our Sustainability Management Plan. We want to do our part in decreasing greenhouse gases."
The six ZX5+ buses were manufactured in Greenville, South Carolina and Phoenix looks forward to continuing its longstanding relationship with RDU to deliver these buses later this month.
"We are excited about the opportunity to continue to serve the needs of Raleigh Durham International Airport and its passengers. Phoenix has a long history of providing airport transportation in its legacy medium-duty shuttle bus business and we are eager to continue to grow this business in our heavy-duty transit bus line," said Denton Peng, CEO of Phoenix.
About Phoenix Motor Inc.
Phoenix Motor Inc., a pioneer in the electric vehicle ("EV") industry, designs, builds, and integrates electric drive systems and manufactures heavy-duty transit buses and medium and light-duty commercial EVs. Phoenix operates two primary brands, "Phoenix", which is focused on commercial products including heavy and medium-duty EVs (transit buses, shuttle buses, school buses and delivery trucks, among others) and "EdisonFuture", which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. To learn more, please visit: www.phoenixmotorcars.com.
Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. These risk factors include, among others, those related to our ability to raise additional capital necessary to grow our business, operations and business and financial performance, our ability to grow demand for our products and revenue, our ability to become profitable, our ability to have access to an adequate supply of parts and materials and other critical components for our vehicles on the timeline we expect, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of the Company's annual report filed on Form 10-K filed with the Securities and Exchange Commission. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.
CONTACT
Mark Hastings, Chief Investment Officer
marketing@phoenixmotorcars.com
SOURCE: Phoenix Motorcars Inc.
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