What is the expected timeline for the deployment of UOTTA⢠batteryâswapping vehicles in Mexico and when will revenue be recognized?
Deployment timeline & revenue recognition
The LOI with DidiâŻMobility states that the first UOTTA⢠batteryâswapping vehicles are slated to enter service in Mexico in the fourth quarter ofâŻ2025 (initial pilot rollâout in Mexico City, with a broader rollout in earlyâŻ2026). UâŻPowerâs management has indicated that the revenue from the partnership will be booked only after the vehicles are operational and the swappingâservice contracts are executed, which the company expects to occur in the first quarter ofâŻ2026 (the first full fiscal quarter after the Q4âŻ2025 deployment).
Trading implications
The Q4â2025 deployment window creates a nearâterm catalyst for UCARâs stock, as investors will price in the incremental revenue stream that will start flowing in Q1â2026. Traders should watch for: (1) the completion of the pilotâtesting milestones (e.g., certification, siteâbuild progress) that could accelerate the rollout; (2) any guidance updates that move the revenueârecognition date earlier (potential upside) or delay it (downside risk). Given the modest 70âpoint sentiment boost and the strategic partnership with a highâprofile mobility player, the market may already be pricing in a modest upside. A shortâtoâmediumâterm position could be justified if the company confirms that the Q4â2025 rollout stays on schedule; a pullâback would be prudent if any regulatory or supplyâchain obstacles push the rollout or revenue recognition into 2026, which would delay the expected revenue uplift.