Phoenix Motor Inc. (NASDAQ:PEV) Q3 2023 Earnings Call Transcript

Phoenix Motor Inc. (NASDAQ:PEV) Q3 2023 Earnings Call Transcript November 16, 2023

Operator: Welcome to the Third Quarter 2023 Phoenix Motor Inc. Earnings Conference Call. My name is Jael, and I'll be your operator for today's call. As a reminder, this call is being recorded and all participants are in a listen-only mode. It is now my pleasure to introduce Mark Hastings, Senior Vice President of Corporate Development and Strategy and Head of Investor Relations. Please go ahead.

Mark Hastings: Thank you, Jael, and welcome, everyone, to our third quarter 2023 earnings call. I will be joined for the Q&A session after the call by Denton Peng, our Chief Executive Officer. For those of you who are new to our story, Phoenix Motorcars is headquartered in Anaheim, California. Our goal is to be a leader in sustainable and zero-emission commercial transportation with a range of products available to our customers, including shuttle and transit buses, school buses, delivery vans and work trucks. We market our medium-duty vehicles through our brand, Phoenix Motorcars. In addition, we offer a full range of EV chargers and electric forklifts as well as telematics solutions for fleets, EV infrastructure solutions and electric vehicle maintenance and service programs.

A fleet of battery-electric commercial vehicles lined up against a sleek charging infrastructure.

We also are currently developing a light-duty commercial vehicle line, which will offer pickup trucks, delivery vans and SUVs, which will be marketed under our EdisonFuture brand. We are not a pre-revenue company like many others in our sector. We were founded in 2003, we delivered our first trucks nearly a decade ago, and our vehicles have logged more than 4 million zero-emission miles on the road. As a result, we have a stable and loyal customer base, and we offer our customers vehicles, charging and telematics solutions and complete vehicle maintenance and service support. For those of you who do not know CEO, Denton Peng yet, he has a long history of more than 20 years in the renewable and clean energy and transportation space. He was a pioneer in the solar business and has founded and led several New York Stock Exchange and NASDAQ-listed public companies.

We will hear from Denton later during our Q&A session. I would first like to say a few words about the exciting announcement we made this morning as we emerge from a very lengthy and detailed process as the winning bidder for the assets of Proterra Transit. Next, I'll spend a couple of minutes discussing our third quarter financial results, and then we'll wrap up by taking your questions. The Proterra Transit acquisition will be an important milestone in our company's history and one that ensures that we remain highly competitive in the zero-emission commercial vehicle industry. And through this acquisition, we will gain ownership of world-class technology and the intellectual property for Proterra's Transit buses, a large order backlog, significant assets and inventories and most importantly, a team that has successfully scaled operations to become the largest electric transit bus manufacturer in North America.

Proterra accounts for over 40% of all electric transit buses delivered in North America with over 40 million real-world service miles. The 35-foot and 40-foot ZX5 transit buses, which will become part of Phoenix's product portfolio are built on an innovative ground-up platform using a lightweight composite body offering the longest driving range on a single chart. Combination of Phoenix with Proterra's transit bus technology will provide significant market synergies in terms of scale, product offerings, customer relationships and market expansion. We still have much work to do before Proterra seeks approval from the U.S. Bankruptcy Court on November 28. But once approved, we aim to close as soon as is reasonably possible. Phoenix will continue to operate Proterra's transit bus manufacturing location in Greenville, South Carolina, and we will work towards ramping up production of the ZX5 transit bus.

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