‘Looks like this could be a dud’: Key Tritium backer laments

afr.com:

One ofTritium’s biggest shareholders, Brian Flannery, says the company has left it too late to reduce its ongoing costs and should have closed its Brisbane factory a year ago and moved all manufacturing to the United States.

Shares in the NASDAQ-listed maker of fast chargers for electric cars fell another 20 per cent on Tuesday to US18¢ amid concerns that customers needing warranties over Tritium’s charging products may start to walk away.

Tritium chargers have been spruiked by politicians including US President Joe Biden and Prime Minister Anthony Albanese. Bloomberg

The stock recovered marginally on Wednesday, up 13.8 per cent to US20¢, giving it a market value of $US33.1 million ($52.3 million).

Tritium’s under-performance, which has prompted a warning that it will be booted off the bourse if the share price does not improve, comes only two years after it floated with a $US2 billion valuation, including debt.

Mr Flannery, a Financial Review Rich Lister whose investment in Tritium dates back to 2017, said he was disappointed in the company’s performance and decision-making. The value of Mr Flannery’s 5 per cent stake has fallen to $US1.66 million, from $US100 million at listing.

“They should have bitten the bullet and moved to the United States earlier and kept an R&D [research and development] centre in Brisbane,” he told The Australian Financial Review.

“They have to shut the Brisbane factory, that’s what they have to do.”

Mr Flannery said he was “shocked” by the board’s inaction. “The current directors have let it go too far and watched the margins disappearing,” he said.

“I think they need to find a big backer to take it private. I think taking it private is the only option. I am hoping someone takes them over.”

Mi