DCFC - Tritium: Revenues Are Growing Fast But The Margins Are Disappointing

Summary

• Tritium finished FY22 with revenues of $85.8 million and sales for the calendar year are expected to stand at around $125 million.
• However, the gross profit was still negative in FY22 while EBITDA came in at minus $91.3 million.
• The gross margin barely improved in FY22 despite much higher sales of stand-alone chargers and economies of scale seem negligible.
• I’m concerned that the loss from operations could rise significantly as the Tennessee facility ramps up production.
• In my view, risk-averse investors should avoid this stock.

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