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NXU Inc. is a Tempe, AZ-based electric vehicle (EV) charging station company that recently went public (symbol NXU). On Sept. 18, the company announced it had started the process of installing its first EV charging station in Quartzsite, AZ.
The company's charging and storage app system is called the Nxu One Megawatt+. The new charging location will provide EV drivers between Phoenix and Los Angeles with a new type of charging station. It will be able to handle small to large cars as well as EV semis.
Quartzsite, AZ is located 17 miles east of the California border on I-10.
The NXU station location will provide travelers with a good halfway charging station between Phoenix and southern California.
NXU says its charging stations have the capacity to be able to be used both for consumer EVs and fleets.
“The number of consumer EV and commercial truck drivers that are traveling longer distances, and need better, more customer-centric charging solutions, is growing by the day,” said Nxu Founder, Chairman, and CEO Mark Hanchett.
NXU's Products
Nxu anticipates beginning construction in Quartzsite in 2024, with the intent to offer charging to customers as soon as possible upon construction completion.
The company is starting out with a box design for its chargers and expects to quickly move to a pedestal unit design.
Eventually, NXU hopes to install a quad-unit site with waiting areas and maximum revenue potential from helping people wait for their EVs to charge.
Eventually the company expects to put stations in various western US strategic highway corridors.
The company will have to compete with Tesla and other EV charging companies in these corridors. The company hopes to have 1900 stations in service by 2030.
NXU's History
NXU recently went public in May 2023 via a reverse merger and later in August 2023 it closed a secondary offering of capital. That round raised $5 million before funding costs.
In addition, the company raised money through convertible notes and related S-1 offerings and now claims to have raised $23 million in total.
The stock now trades for 18.49 cents per share, giving the company an approximate market capitalization of about $14 million. However, it also has a significant amount of warrants outstanding (a type of option) that could bring in more capital to the company.
Investors in the stock might expect to see a reverse stock-split which could raise the price. This is typically what happens to tech companies like this when they want to garner more attention and respect to their public offering. However, there is no guarantee that this will happen.
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Mark R. Hake, CFA, writes articles on national and local news, stocks, and market events at Kiplinger.com, Barchart.com, Medium.com, and Newsbreak.com as well as TalkMarkets.
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