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Tritium is an Australian based EV chargers company, offering a state-of-the-art line of products, and with solid market shares in Europe, the U.S. and Australia. Currently benefiting from strong macroeconomic tailwinds, subsidized and partially de-risked by recent financings, the company will have to face serious challenges to install themselves as a market leader, if successful in doing-so returns could be very impressive as we see this disruptive technology being implemented worldwide. 

Current partnerships

Government funding opportunities

"A bipartisan infrastructure bill supports a $7.5 billion investment toward new EV chargers, The Bipartisan Infrastructure Law includes $5 billion in formula funding for states with a goal to build a national charging network. 10% is set-aside each year for the Secretary to provide grants to States to help fill gaps in the network. The Law also provides $2.5 billion for communities and corridors through a competitive grant program for supporting rural charging, improving local air quality and increasing EV charging access in disadvantaged communities."

More about their products

"We focus exclusively on DC fast charging solutions for EVs. This has led to us developing technology solutions differentiated from those of many of our competitors. Our fully liquid-cooled charging technology enables the charging station to achieve an ingress protection (“IP”) 65 rating and be sealed from dirt, dust, salt and other corrosive contaminants, and to operate in a wide range of ambient temperatures and environmental conditions. In contrast, many of our competitors offer air-cooled chargers."

Burlap's 2 minutes   DDs

 
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  1. Executive officers, directors and their affiliates hold approximately 30.6% of the outstanding Ordinary Shares as of February 7, 2022.
     

  2. A bipartisan infrastructure bill supports a $7.5 billion investment toward new EV chargers in the United States over the next decade. it includes $5 billion in formula funding for states with a goal to build a national charging network. 10% is set-aside each year for the Secretary to provide grants to States to help fill gaps in the network. The Law also provides $2.5 billion for communities and corridors through a competitive grant program
     

  3. Tritium’s Lebanon, Tennessee facility is targeted to begin in the third quarter of 2022. The facility is expected to house up to six production lines, which will produce 10,000 DC fast charger units per year, with the potential to increase production to approximately 30,000 per year at peak capacity.
     

  4. Hold a market share of approximately 20% in Europe and the United States and 15%, for DC fast chargers, as of March 2020. Leader in both Australia and New Zealand, with a market share of approximately 75% as of March 2020. 
     

  5. Solid partnership with Fortune 500 companies, including Shell, BP and BHP mining.
     

  6. White House support.
     

  7. Solid and recent growth, the Company reports second half 2021 sales of $98 million, an increase of 416% year over year; record contracted backlog at year-end, representing over 48% of the Company’s 2022 revenue target; and issues formal revenue guidance of $170 million for 2022, consistent with prior forecast.
     

  8. State-of-the-art products, Tritium is allegedly offering one of the most performing Chargers, able to resist drastic temperature changes. Thermal testing temperatures ranging from -70°C (-94°F) to +180°C (+356°F)
     

  9. Fully integrated suite of product, from hardware to software, including servicing and maintenance. Level 2 chargers to be announced in 2023.
     

  10. Industry studies estimate that more than 4 million DC fast chargers will be needed by 2040

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  1. Never been profitable since inception.
     

  2. The EV market currently benefits from the availability of rebates, tax credits and other financial incentives from governments, utilities and others in many countries around the world to offset the purchase or operating cost of EVs and EV charging stations. Tritium’s sales and sales growth heavily rely on these incentives to continue the transition towards the electrification of transport, and therefore the demand for EV chargers.
     

  3. In the future, they may need to raise additional funds, which may result in the dilution of  shareholders, and such funds may not be available on favorable terms or at all.
     

  4. Competition is starting to get tougher, with numerous, very well-diversified and funded competitors, notably ABB, Siemens and Chargepoint.
     

  5. Warrants exercisable when underlying is over $6.90, Cashless redemption over $10.80 which means possible selling pressure and/or dilution when approaching these levels.
     

  6. High chances of failing execution on a multitude of avenues, future inflection points might result in adverse losses, loss of market shares and decrease in margins.
     

  7. Cost and scarcity of raw materials for charge might be detrimental to the cost of goods, adversity in hiring and retaining qualified employees in a high demand market.
     

  8. Unclear path to profitability, the company might struggle to justify their current valuation, especially if they aren't able to meet their ambitious pre-SPAC guidance.
     

  9. Tritium focus on level 3 chargers which is a risky venture since the price of installations are 10-20x higher than level 2. Especially since the $7.5 b bill will focus on L2 charging stations (cost for level 2 chargers 6k /stations,  Level 3 100k/stations)
     

  10. Tritium will need to invest heavily in Research in Development, weak IP protection could result in losses.

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DCFC plan to open their Tenesse factory in august of 2022, the plant is expected to produce over 30k chargers annualy.

The Catalyst list
 

Where to DD?

 

 Company's earnings announcement for the fiscal year ending June 30, 2022, which is expected to be released in September 2022

Burlap's Blog 

Tritium Charging

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