Why did the Tritium share price just leap 14%?

Aussie-born EV charging giant got its US factory off the ground in just five months.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The Tritium share price launched 14% overnight to close at US$7.31
  • Its gain came amid news the Aussie-born EV charging giant has opened its first US factory
  • The facility was announced just five months ago by Tritium CEO Jane Hunter and US President Joe Biden

The share price of Aussie electric vehicle (EV) fast-charging leader Tritium DCFC Ltd (NASDAQ: DCFC) launched 14% overnight amid news the doors of its maiden United States factory have been thrown open.

The facility, located in Lebanon, Tennessee, is expected to help meet US government goals and electrify transportation across the continent and beyond.

Tritium CEO Jane Hunter made the announcement alongside US President Joe Biden in February.

Right now, shares in Tritium are priced at US$7.31 apiece.

Let's take a closer look at the latest news from the Brisbane-born outfit.

A man wearing a suit and holding an EV charger gives the thumbs up.

Image source: Getty Images

Tritium share price surges 14% as factory opens

The share price of NASDAQ-listed tech stock Tritium rocketed higher overnight amid the opening of its first US manufacturing facility.

The facility will initially produce the company's award-winning RTM fast-charging device. Additionally, it expects to branch out and produce the company's PKM150 in early 2023.

The PKM150 fast charger boasts a simpler install and more options for consumers, says the company.

Hunter said the facility's opening is an "important milestone" for the company, Tennessee, and US drivers. She continued:

As many as 35 million electric vehicles are expected to be in use by 2030 and those vehicles will require more powerful and convenient charging infrastructure.

Americans will rely on [EV charging infrastructure] to get to work, to school, to doctor's appointments, and more. It needs to be reliable, and it needs to be able to grow to meet their needs.

The chargers are expected to meet the requirements of the US's new Inflation Reduction Act. The legislation offers US$370 billion for climate-friendly initiatives. The PKM150 fast charger is also expected to meet the standards for US National Electric Vehicle Infrastructure program funding in the March quarter.

Furthermore, Tritium chief operating officer Glen Casey said the factory's set-up was one of the fastest he'd seen in his 30-year career. It took just five months. Casey said:

I can truly say that this new facility is world-class. Like our products, we've designed our manufacturing process to be modular and scalable.

Sadly, its overnight gains weren't enough to boost the Tritium share price back into the long-term green. It has slumped 21% since listing on the NASDAQ in January.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on International Stock News

Blue electric vehicle on a green rising arrow with a charger hanging out.
International Stock News

Boom! Why has Tesla stock rocketed 68% so far in 2023?

It's already been a year to remember for the electric vehicle giant.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
International Stock News

How an AI demo erased $140 billion from Alphabet stock

One error made this a costly display of Alphabet's new technology.

Read more »

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.
Share Market News

Meta stock price rockets 19% on $56 billion buyback

Meta stock has just seen one of its biggest jumps in history...

Read more »

woman looking surprised watching netflix
International Stock News

The Netflix share price just popped. Here's one way to buy in on the ASX

Here's one way to get a slice of whatever future Netflix might have.

Read more »

A futuristic view of electric vehicle technology with speeding bright light trails indicating power.
International Stock News

If I'd bought $5,000 of Tesla stock 3 years ago, what would my investment be worth now?

Here's how much mind-blowing money investors have made on Tesla stock in three years...

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
International Stock News

Alphabet stock: A once-in-a-decade opportunity to outdo Warren Buffett?

Is now the time to snap up shares in the global tech giant?

Read more »

Piggy bank on an electric charger.
International Stock News

Aussie investors are buying Tesla shares in droves. Should you?

A beaten-up stock, dramatic price cuts, and a controversial leader -- does investing in Tesla still make sense?

Read more »

Happy woman on her phone while her electric vehicle charges.
International Stock News

Should I buy Tesla stock for 2023 or not?

Is it finally time to buy Tesla stock?

Read more »