We’re initiating a position in Nextracker , buying 350 shares at roughly $48.18. Following Thursday’s trade, Jim Cramer’s Charitable Trust will own 350 shares of NXT with a weighting of about 0.5%. Nextracker makes solar tracker systems that allow huge utility-scale rows of solar panels to rotate and follow the sun’s movement across the sky throughout the day, maximizing their power generation. It’s the “backbone” of any solar power system, as management would say. We’re using proceeds from Thursday’s exit of Foot Locker to fund this addition. We’re calling up Nextracker from the Bullpen , viewing its 24% pullback over the past couple of weeks as a good entry point to start a new position. As you can tell by its recent trading, this is a highly volatile name that is sensitive to interest rates and government policy. It’s why we are starting this position on the smaller side, leaving plenty of room to scale over time. Nextracker stands out for its leadership in a fast-growing market. Its original innovation was a single-row tracker technology that allows each row of panels to move independently, rather than all in unison. While this was once considered too expensive, Nextracker was able to lower its input pricing to the point where they’re now much more competitive. Over the years, the company added additional features to its product line of integrated hardware and software. Some of these features include self-powering systems, software that helps improve the energy yield on uneven terrain or bad weather conditions, and equipment that protects solar panels during hail storms, which is one of the leading causes of panel breakage. In response to customers needing something to mitigate hail damage risk, Nextracker developed an industry-first “hail stow” technology. Its most advanced system is fully automated and can provide up to a 75-degree rotation angle. Nextracker is the global market share leader in this space, with the highest-quality and most reliable product with the lowest install cost, operating cost, and levelized cost of energy (LCOE), which is a measure of lifetime costs divided by energy production. Its U.S. business accounts for roughly two-thirds of the company’s revenue. The international market is more competitive and its margins are lower than the corporate average, but the company believes there are opportunities to gain market share and pricing over time. The company reported a strong set of fourth-quarter results in May, with revenues up 42% year over year, much higher than expected, and adjusted EBITDA of $160 million versus $134 million expected. On adjusted earnings, analysts expected the company to make 68 cents per share, but it earned 96 cents per share. NXT YTD mountain Nextracker YTD For the full-year fiscal 2025, Nextracker management guided revenues in line but adjusted EBITDA ahead of estimates and adjusted EPS below estimates at the midpoint. However, some analysts pointed to management’s strong execution since becoming a public company, raising guidance each quarter in fiscal 2024, as a sign that guidance could be conservative. What makes solar, and the renewable industry at large, so appealing is that energy usage has increased dramatically over the past few years, driven by growth in data centers, electrification of appliances and vehicles with the need for more charging stations, and reindustrialization across the United States. It’s one of the reasons why we have been so bullish on Eaton . In a recent note by UBS, the analyst points out that Amazon , Meta , Microsoft , and Google represented 40% of total U.S. utility-scale solar demand over the last five years. Just four companies. Why are they huge buyers? These mega-cap tech companies are committed to 100% renewable power or clean energy. They are committed to decarbonizing. But here’s the thing: their needs may dramatically increase in the years ahead because of AI, which we know uses 10 times more electricity per query than a traditional Google search. And training has much higher power needs than your traditional cloud infrastructure. UBS argues that if these companies are in the early stages of exponential electricity demand growth, we should see demand for renewable projects increase along with it. Most will come from utility-scale solar projects that need tracker systems from either Nextracker or a competitor. Solar projects are a solution to these demand challenges because it is the lowest-cost option for new power. Its why CEO Dan Shugar explained on the last earnings call that solar deployments are accelerating in most of the world. Shugar’s positive view is also based on the U.S. Energy Information Administration forecasts of a 5% annual increase in new power generation needs over the next five years, and solar being the fastest growing energy technology with a 26% compound annual growth rate over the next five years. Nextracker’s record backlog of over $4 billion, up from $2.6 billion, surely supports this view. Even with all this growth happening at Nextracker and in the industry at large, we’re talking about a stock that trades at only 16 times the midpoint of its adjusted EPS outlook. If the stock can trade up to 18 times the high end of its full-year earnings guidance, the stock will trade at $55. We’ll set our price target at that level and note it is still $5 below where the stock traded in mid-June. The company has a strong liquidity position, which matters in this industry. Solaredge got slammed Tuesday after offering convertible notes and took down the whole group with it. Last quarter, Nextracker had about $470 million in cash and $150 of debt on the balance sheet and generated more than $400 million of cash flow over the full year. The company is not allowed to pay dividends or repurchase stock until 2026 due to the rules related to the spin from Flex , so what it can do instead build cash and use what’s leftover for disciplined mergers and acquisitions. Last week, it announced it paid $119 million to buy Ojjo, a renewable energy company specializing in foundation technology and services used in utility-scale ground-mount applications for solar power generation. Putting it all together, we are interested in renewables and solar stocks because energy needs are increasing around the world. Nextracker stands out to us in the group because of its technology leadership, strong balance sheet, and track record of execution. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
With the launch of the first-ever Class 8 vocational EV in the North American market, PACCAR Kenworth is raising the battery-electric bar and underscoring just how far the market has come since the Tesla Semi made its debut nearly a decade ago.
When Tesla pulled the wraps off its all electric Semi truck all the way back in November of 2017, the rest of the industry was hardly thinking about BEVs. Nearly a decade later, the world is still waiting for the Semi to begin regular production, and PACCAR is launching its second generation of HDEVs with the debut of this, the all-new Kenworth T880E vocational truck.
“The Kenworth T880E marks a groundbreaking milestone in Kenworth’s history as we bring to market the first Class 8 battery-electric solution built for vocational applications,” explains Kevin Haygood, Kenworth assistant general manager for sales and marketing. “The T880E is engineered to meet the evolving needs of operators and vocational fleets while still providing the durability, reliability and customization our customers expect.”
The new electric K-whopper is motivated by PACCAR’s in-house ePowertrain platform, capable of putting up to 605 hp and 1,850 lb-ft of peak torque to work, while delivering the same levels of drivability and dependability fleets expect from a Kenworth – but power and torque are only part of the T880E’s work-ready résumé.
Advertisement – scroll for more content
Open to work
Kenworth T880E; via PACCAR.
In addition to a stout, Class 8 electric chassis fitted with heavy-duty Kenworth brakes and axles, the T880E’s central drive eMotor allows for significant wheelbase flexibility so fleet buyers can spec out exactly the machine they need to get the job done. The T880E was also designed to enable lift axle installations from trusted Kenworth upfitters for a vocational-friendly BEV integration.
Additionally, the T880E features a wide selection of factory-installed options that include both high- and low-voltage ePTO (electric Power Take Off) ports, mechanical ePTOs, and the same wide array of body configurations as the ICE version.
Speaking of the ICE version, the electric T880E also can also be had in the same set-back front axle and set-forward front axle configurations with the same multi-piece hood construction. Inside the cab, the latest in driver-focused technology includes the Kenworth SmartWheel and a new 15″ DriverConnect digital touchscreen. Dash and vocational features like RAM Mounts and factory-installed PTO switches are available. The T880E is also offered with Kenworth ADAS packages for customers interested in DigitalVision Mirrors, Bendix Fusion, and Lane Keeping Assist.
It’s so big, you guys
Kenworth T880E; photo by the author.
The T880E was on static display at last week’s ACT Expo in Anaheim, California. Check with your local Kenworth dealer for availability.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.
The tire-blistering SU7 Ultra has been the Xiaomi brand’s flagship super sedan since its launch, but a controversial software setting has limited the car to “just” 900 hp in regular driving – resulting in an outcry from owners who ponied up for the big boy numbers. With its latest software update, that missing 648 hp is back on tap!
The SU7 Ultra made waves throughout the performance car world when a bright yellow striped example lined up alongside a white quarter mile king, the 1,000+ hp Tesla Model S Plaid, and promptly smoked it.
That wasn’t all. A preproduction SU7 Ultra prototype lapped the legendary Nürburgring circuit in just 6 minutes and 46.874 seconds, firmly stamping the 1,500+ hp Xiaomi’s alphanumeric into the track’s record books with a time nearly fifteen seconds quicker than a Rimac Nevera or, on the ICE front, either a Corvette ZR1, Viper ACR, or Porsche 918 (take your pick).
It’s hardly any wonder, then, that the customers who signed up – in droves, too – were disappointed to learn that the SU7 they were allowed to buy had been neutered by the safety nannies to the tune of nearly 650 hp. (!)
Advertisement – scroll for more content
We’re so back
The outrage from SU7 Ultra owners was immediate. And, facing mounting pressure online and on social media, Xiaomi ultimately decided to withdraw the performance-limiting features while acknowledging the need for more transparent communication about future software updates they messed up, saying in a statement, “we appreciate the passionate feedback from our community and will ensure better transparency moving forward.”
So, rich people can rocket themselves down the road in 9 second hypercars again and all is right with the world. A happy ending – but one that sort of illuminates a fresh set challenges for automakers peddling “software-defined vehicles” to a market that still thinks of their cars as very much hardware defined products.
The new reality is playing out in real time now, and the Jeff Bezos-backed $20,000 electric compact pickup from Slate Auto is going the other way entirely – time will tell whether more, or less tech is the answer.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.
Tesla (TSLA) has started offering reduced interest rates on the new Model Y in the US — this equates to a direct discount on the brand new vehicle that was supposed to spark Tesla’s demand back.
The automaker has announced “1.99% APR or $0 Due at Signing available for well-qualified buyers” on the new Model Y in the US for the first time:
This amounts to a direct discount worth a few thousand dollars. It is the first widely available discount on the new Model Y coming just weeks after the cheaper non-Launch Edition launched in the US.
These discounts and subsidized financing point to soft demand for the updated best-selling vehicle in the US. Tesla just delivered a disastrous first quarter, which it mostly blamed on the Model Y changeover, resulting in lower inventory.
However, industry watchers, including Electrek, noted many signs that the Model Y changeover was not the only issue. Tesla added significantly to its inventory in the first quarter, and the wait times for the new Model Y were extremely short.
Now, the discount weeks after launching the new Model Y confirm the soft demand in the US.
I think it’s clear by now: the new Model Y is not coming to save Tesla.
Let’s be honest: It will still be a significant vehicle program by volume. It just won’t help Tesla return to growth this year.
The RWD Model Y is still coming and has a chance to help in the US. It is already available in China, and it’s not helping Tesla much there, but that’s in a hyper-competitive market, especially at lower prices where the RWD Model Y operates.
Tesla’s performance in Q2 in China will be interesting since it is basically back to its regular lineup for the whole quarter.
The US appears to have been Tesla’s least affected market, but Q3 will be the real test with the full lineup and no backlog of demand for new Model Y.
FTC: We use income earning auto affiliate links.More.