U Power Limited (NASDAQ: UCAR) stock traded higher on Monday after the company announced progress into market validation for its shared battery swapping solution for two- and four-wheeled electric vehicles.
U Power Limited (UCAR) has recently embarked on a market validation phase for its unique battery-swapping solution, specifically designed for electric vehicles (EVs). The company has successfully set up more than 40 battery swapping stations in Shanxi, China, with a strategic focus on the delivery services and food delivery industry.
This pioneering solution caters to both two-wheel and lightweight four-wheel EVs, seamlessly accommodating battery packs with identical specifications. This enables different vehicle models to interchange battery modules at shared stations. The process begins with cell phone verification and proceeds with manual battery exchange.
The company’s Chief Executive Officer and Chairman of the Board, Mr. Jia Li, has expressed confidence in the solution’s potential to decrease operating costs for delivery service providers by an estimated 30%, compared to the costs associated with purchasing and charging batteries. The company anticipates substantial business opportunities and increased long-term shareholder value following the official launch of the service.
Upon completion of the validation phase, U Power intends to broaden its network by establishing over 200 specialized battery-swapping stations across additional provinces in China, including Shandong, Anhui, and Shanxi. The strategy aims to improve vehicle efficiency and reduce daily operating costs for users.
U Power (NASDAQ: UCAR) Stock Reaction
UCAR stock rose 1.12% to close at $0.09 on Monday. The traders had exchanged hands with 70,062,446 (70.06 million) shares compared to the average daily trading volume of 19.90 million.
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