EV charger Tritium expects sales to double in 2023, receives record order from BP

EV charger Tritium expects sales to double in 2023, receives record order from BP

Photo: BP Pulse, via Facebook.

Electric vehicle (EV) fast charger manufacturer Tritium (NASDAQ: DCFC) went on a vertiginous ride in 2022 with its shares plunging 81 per cent by the year's end, losing its unicorn status as sourcing parts and staff proved difficult, gross margins were in negative territory and users complained about faulty machines in Australia.

But in the Brisbane-based company's first announcements of 2023 there has been at least a jolt of optimism, including a record order from BP for fleets and the general public in the United States, the United Kingdom, Europe, and Australia.

This builds on an agreement with the multinational in April last year involving an initial order of just under 1,000 chargers that was limited to the Australian, New Zealand and UK markets.

The news also coincided with a US$200 million-plus sales forecast for the calendar year stemming from the projected output of 11,000 units, compared to a record revenue in the range of $95-102 million expected for 2022, of which the vast majority was recorded in the December half.

This forecast is still well short of earlier forecasts projecting US$359 million in sales in 2023, but appears to be a move in the right direction as shares rose 10 per cent and the group is expecting a gross margin of 10-12 per cent as the company "benefits from its manufacturing scale-up, improved product pricing, and planned product suite streamlining".

In fiscal 2022 (ending 30 September) the group recorded a gross margin of -0.4 per cent and reported a loss of US$120 million.

Tritium expects operational expenses, including research and development, to rise by 13-19 per cent to $90-93 million in 2023 as well, as it ramps up production at facilities in Brisbane and Tennessee, which produced record units in December of 600 and 400 respectively - a 50 per cent rise on previously monthly highs.

In 2023 the Brisbane facility will phase out production of its four legacy products in order to focus production solely on Tritium's modular chargers.

Tritium did not report an estimate of BP's latest order, but specified it included a mix of Tritium’s 50kW RTM and 150kW PKM chargers. The RTM is the company’s first modular charger and one of the most advanced DC fast chargers on the market. 

"As a result of BP's order, Tritium’s industry-leading fast EV chargers will make it easier than ever before for commercial and everyday drivers to join the e-mobility transition," said Tritium CEO Jane Hunter.

"Tritium envisions a world in which fast EV charging is everywhere. We’re grateful to the bp team for their order and look forward to working together to support bp pulse as they build a reliable, accessible fast charging network around the world."

BP Pulse CEO Richard Bartlett described Tritium as a "natural choice" for the order.

"Tritium has a global presence and industry-leading DC fast charging technology – we’re looking forward to putting these chargers to work across three continents," he said.

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