It’s Friday, and Phoenix Motors (EV transit contender) is coming off one of the most banger overnight parties of the friggin year, sending its stock soaring 193.53% in after-hours trading yesterday. That’s nearly 200%... all from a company that most people had written off as roadkill, while giving the financial equivalent of a middle finger to Wall Street skeptics.

(Source: Giphy) 

In short, the surge was triggered when Phoenix reported a fresh quarter revenue of $9.4 million, a massive leap from the pathetic $1.8 million it posted a year ago. For more context, that’s a girthy 422.22% booming record in revenue for the EV company who also flipped from a $2.8 million loss in 2023 to a whopping $14.8 million profit. 

(Source: Yahoo Finance) 

Additionally, on a per-share basis, Phoenix went from losing 13 cents to earning 49 cents. Meaning Phoenix Motors didn’t just report a comeback - they just experienced an insane resurrection. 

(Source: Giphy) 

What’s more, is that while some may look at this as a lucky break, Phoenix didn’t stumble into this success by accident. Over the course of the year, the company has made some key moves, starting with the acquisition of Proterra’s transit business and battery lease portfolio. This deal added heavy-duty electric buses to their vehicle lineup—because why not go big when you’ve been playing small for so long? They even landed their first major order of six zero-emission buses for Raleigh Durham International Airport that saw over 14 million passengers flow through it’s terminals in 2023. . 

(Source: Mass Transit) 

On the other hand, Phoenix Motors has not only partnered up with InductEV, a company specializing in wireless vehicle charging, because as we know “plugging in” is atrociously inconvenient - but they’ve also made a bold move, throwing their hat into the AI ring by launching a development center focused on self-driving systems. Translation: Any mention of AI keeps every company relevant these days. Smart play. 

(Source :Tech Spot) 

So clearly these major moves, combined with a record earnings report has conjured up a speculative bullish sentiment for the company… and from the looks of it they aren’t slowing down one bit. Especially considering they’ve recently reshuffled its executive team, appointing new chief operating and financial officers—presumably to make sure the wheels don’t fall off their newfound bandwagon that just so happens to have just raised $11.1 million through private placements. 

What’s interesting here is that even though Phoenix’s stock had been circling the drain, the momentum going into the earnings report clearly saw short sellers betting hard that the company would induce a seismic flop - as nearly 40% of the company’s float was sold short going into Thursday’s earnings report. 

But as you can imagine, those shorts got absolutely torched. The stock’s 193% surge left them scrambling to cover their positions, creating a short squeeze that sent Phoenix’s stock flying even higher. At its peak, the stock hit around $7, giving Phoenix a market cap of $218 million. Again, not bad for a company that just days ago, most people had forgotten even existed.

(Source: Raging Bull) 

But, but, but… of course, not everyone is ready to call Phoenix the second coming of EV dominance. For instance, some analysts are still waving the caution flag, pointing out that this blowout quarter was boosted by a one-time gain tied to the Proterra acquisition. In other words, Phoenix didn’t exactly pull a rabbit out of a hat—they just got a little help from accounting.

(Source: Giphy) 

"Phoenix has been losing money for years, and its revenue base remains extremely low for a public company," said Baird analyst Ben Kallo. "So we need to see continued strong execution before getting too excited." 

Meaning, even though Phoenix Motors just gave a masterclass in how to burn short sellers—fast, the only major hurdle standing in their way is if they can keep the momentum train churning. That’s the million-dollar question that only time will tell us.

(Source: Giphy) 

TL;DR: Phoenix Motors went from penny stock territory to posting a 193% gain in after-hours trading, thanks to a revenue surge and some strategic moves. Short sellers got burned, but analysts are skeptical about whether this performance is sustainable. 

Stocks.News holds no positions in companies mentioned in the article.