Israeli wireless electric vehicle (EV) charging technology company Electreon Wireless (TASE: ELWS) today announced that the Swedish Transport Administration (TRV) has decided to cancel the tender for building an electric road system for which the company had bid. Following the announcement this morning, the company's share price is down 44.66% this afternoon. Electreon's solution charges the batteries of electric vehicles as they travel, through coils placed under the road surface.
The Swedish Transport Administration canceled the tender because all the bids received, both bids based on wired and wireless charging technology, were much higher than the estimated budget that the Authority had allocated to the project. The Swedish Transport Authority claims that the gap is due to the fact that this is the first project of its kind in the world and the changing global situation, including the availability of materials and high inflation rates.
Although the Swedish Transport Authority added that it still plans to build the first electric road in Sweden in the future, but this did not prevent the drop in Electreon's stock price.
Electreon said, "The company accepts with understanding TRV's decision to examine management of the tender, the tender requirements and the costs arising from it, and to formulate a renewed format for the construction of the first electric road in Sweden, among other things, because the structure of the tender and the requirements that were included in it, together with the detailed external circumstances in the announcement, created difficulty for all the tender bidders to submit an offer that would meet the estimated budget. In the company's assessment, based on an analysis of the tender's requirements and the possible ways to optimize it, publishing a new and improved tender in the future will result in the company being able to submit an attractive offer that will meet the estimated budget."
Electreon was founded in 2013 as Electric Road. In 2018 the company merged into a stock market shell, listed on the TASE and changed its name to Electreon Wireless. The company's president is former President Reuven Rivlin and chairman and CEO is cofounder Oren Ezer. In 2022, the company had revenue of NIS 8.65 million and reported a net loss of NIS 82.5 million.
Published by Globes, Israel business news - en.globes.co.il - on August 29, 2023.
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