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

Image source: Getty Images

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.

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

Smiling man working on his laptop.
International Stock News

Which 'other' US AI stock is soaring this week?

This US AI stock is following Nvidia's footsteps in more than one way.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
International Stock News

Warren Buffett meets AI: Is Berkshire Hathaway prepared for technological disruption?

Berkshire Hathaway's portfolio may contain underappreciated AI-associated risks.

Read more »

A man looking at his laptop and thinking.
International Stock News

Nvidia stock is still a great buy — but when should investors sell shares?

Here are three solid reasons for investors to consider selling shares of the artificial intelligence (AI) chip leader.

Read more »

Three exuberant runners dash towards the camera. One raises her arms in triumph; another jumps in the air with arms raised. The third runner gives a satisfied smile.
International Stock News

Why Tesla stock jumped today

Tesla investors seem to want to keep CEO Elon Musk happy.

Read more »

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Prediction: This will be Nvidia's next big move

The GPU leader's next big growth catalyst isn't being talked about much by investors -- yet.

Read more »

streaming stocks represented by woman watching tv on tablet
International Stock News

Why Apple stock popped (again) Wednesday morning

Wall Street is increasingly bullish on the iPhone maker's plans for artificial intelligence (AI).

Read more »

Boral share price divestment Banknote ripped in half
International Stock News

Is Nvidia stock a buy after the 10-for-1 stock split?

Shares in this artificial intelligence titan have become significantly cheaper, but its massive market cap remains the same.

Read more »

Woman relaxing and using her Apple device
International Stock News

Why Apple stock popped Tuesday morning

Wall Street is bullish on the iPhone-maker's plans for artificial intelligence (AI).

Read more »