Executive Summary / Key Takeaways

• Thunder Power Holdings, Inc. (AIEV) is an early-stage electric vehicle (EV) developer with proprietary modular chassis and battery technologies, aiming to disrupt the premium and practical EV segments.
• The company has yet to generate revenue from EV sales and continues to incur significant operating losses, with a critically low cash balance of $97,454 as of June 30, 2025.
• Recent delisting from Nasdaq to the OTCQB Venture Market and ongoing legal proceedings involving its principal shareholder raise substantial doubt about AIEV's ability to continue as a going concern.
• A strategic pivot includes the acquisition of a 30.8% stake in Electric Power Technology Limited (TW Company), signaling an expansion into renewable energy and integrated EV solutions to diversify its value chain.
• The investment thesis is highly speculative, hinging on the successful commercialization of its proprietary technology, the realization of benefits from the TW Company acquisition, and securing critical financing amidst intense competition and severe liquidity challenges.

A Vision for Sustainable Mobility in a Crowded Field

Thunder Power Holdings, Inc. (AIEV) emerged from the 2024 business combination of Thunder Power Holdings Limited and Feutune Light Acquisition Corporation, embarking on a mission to power the future of sustainable transportation. The company aims to create stylish, innovative, and cost-efficient premium electric vehicles (EVs) with differentiated designs tailored for various lifestyles. Its core business revolves around the design, development, and eventual manufacturing of high-performance EVs, with operations primarily in Taiwan and management teams spanning Taiwan and the USA.

The EV industry is a rapidly evolving, highly regulated, and capital-intensive market, characterized by intense competition from both established automotive giants and agile startups. AIEV's overarching strategy involves a phased development and roll-out of four distinct EV models: a limited-edition Coupe, a long-range Sedan, a compact City Car (Chloe), and a long-range SUV. This approach is designed to leverage a modular integration concept, which the company believes will reduce investment and accelerate design and production timelines. Broad industry trends underscore a growing global demand for sustainable transportation, encompassing practical, innovative, and luxury EV segments, alongside a nascent shift towards integrated clean energy solutions that extend beyond vehicle manufacturing.

The Technological Edge: AIEV's Proprietary Innovations

At the heart of AIEV's strategy lies its proprietary technology, particularly a patented modularized chassis system. This foundational innovation is intended to serve as the building block for the Thunder Power family of EVs, excluding the City Car, by enabling the sharing of common parts and modules. This modular approach is expected to significantly lower investment requirements and reduce both design and production time compared to traditional automotive manufacturing processes.

Beyond the chassis, AIEV's proprietary technologies are designed to deliver tangible benefits to consumers. The company anticipates these innovations will significantly increase the driving range of its EVs, allow for faster recharging capabilities, and ultimately lead to lower costs of ownership. While specific quantitative metrics for these benefits are not publicly detailed, the strategic intent is clear: to offer eco-friendly, premium EVs that compete effectively on design, quality, comfort, range, and price. For investors, these technological advantages represent AIEV's primary competitive moat, potentially enabling superior efficiency, enhanced market positioning in its targeted segments, and a foundation for long-term growth, assuming successful commercialization.

Strategic Evolution: From EV Developer to Integrated Energy Solutions

Thunder Power Holdings Limited (TP Holdings) was incorporated in 2015, establishing Thunder Power New Energy Vehicle Development Company Limited (TP NEV) in 2016 to focus on EV design and manufacturing. A pivotal moment in the company's history occurred on June 21, 2024, when TP Holdings completed a business combination with Feutune Light Acquisition Corporation (FLFV), a special purpose acquisition company. This reverse recapitalization transformed the combined entity into Thunder Power Holdings, Inc., which began trading on the Nasdaq Global Market under the symbol AIEV on June 24, 2024.

In a significant strategic move to diversify its approach across the clean energy value chain, AIEV entered into a Share Exchange Agreement on December 19, 2024, with shareholders of Electric Power Technology Limited (TW Company), a Taiwan corporation. This agreement, amended on January 27, 2025, and approved by AIEV's stockholders on June 26, 2025, involves the exchange of 31.63 million ordinary shares in TW Company for 37.64 million newly issued common stock in Thunder Power. This acquisition aims to address strategic gaps in the EV sector and expand AIEV's footprint into renewable energy and integrated EV solutions, broadening its potential revenue streams beyond vehicle sales alone.

A Precarious Financial Reality: Zero Revenue, Mounting Losses, and Liquidity Concerns

Despite its ambitious vision and strategic initiatives, AIEV faces a precarious financial reality. The company has not generated any revenue from the sale of EVs or other operating activities for the three and six months ended June 30, 2025, nor for the full fiscal years from 2021 to 2024. This absence of revenue underscores its early-stage status and the significant challenges in commercializing its products.

AIEV continues to incur substantial operating losses. For the three months ended June 30, 2025, the company reported a net loss of approximately $0.50 million, an improvement from a $1.30 million loss in the prior-year period. The net loss for the six months ended June 30, 2025, was approximately $1.30 million, down from $1.60 million in the first half of 2024. This reduction in losses was primarily due to lower share-based compensation expenses incurred after the June 2024 Business Combination, partially offset by increased professional expenses associated with being a publicly traded company, as well as higher payroll, insurance, and bank charges.

Liquidity remains a critical concern. As of June 30, 2025, AIEV held a mere $97,454 in cash. Operating activities consumed approximately $1.01 million in cash during the first six months of 2025. While financing activities provided approximately $1.05 million during the same period, this was primarily sourced from borrowings from the company's controlling shareholder and his family member. The company also holds a $13.11 million prepaid forward contract as a current asset, but the uncertainty surrounding the timing and market conditions for its settlement in shares creates an additional challenge to meeting short-term obligations. These conditions collectively raise "substantial doubt about the Company’s ability to continue as a going concern" for at least the next twelve months. Management is actively exploring new financing options, including debt extensions or new equity capital, and seeking to resolve the principal shareholder's legal situation to secure alternative financial support, alongside evaluating business restructuring and cost reduction strategies.

The Competitive Arena: AIEV's Position Against Industry Giants and Niche Players

AIEV operates as a niche player in the highly competitive EV market, positioning itself as a challenger rather than a leader. Its strategy focuses on a range of vehicles designed for practicality, extended range, and potential cost efficiency, such as its Long-Range Sedan, SUV, and Compact City Car. This approach contrasts sharply with the market dominance and diversified offerings of industry giants.

Against a formidable competitor like Tesla (TSLA), AIEV aims for a more accessible EV experience, potentially with simpler user interfaces, while Tesla leads in cutting-edge technology, premium pricing, and an extensive integrated ecosystem. Tesla's financial performance, with a TTM Gross Profit Margin of 0.18, Operating Profit Margin of 0.07, and Net Profit Margin of 0.07, significantly outpaces AIEV's current 0.00% across all these metrics, highlighting AIEV's substantial lag in market presence, technological integration, and financial scale.

Compared to legacy automakers like Ford (F) and General Motors (GM), AIEV offers a dedicated EV portfolio, seeking to differentiate through agile design and potentially innovative approaches. Ford (TTM Gross Profit Margin 0.08, Operating Profit Margin 0.03, Net Profit Margin 0.03) and GM (TTM Gross Profit Margin 0.12, Operating Profit Margin 0.07, Net Profit Margin 0.03) benefit from vast dealer networks, established brands, and immense manufacturing scale, areas where AIEV currently lags significantly. AIEV's smaller scale makes it vulnerable to these incumbents' financial stability and distribution strengths.

Even against fellow EV startup Rivian (RIVN), AIEV's competitive standing is challenging. While both are growth-oriented, Rivian, despite negative TTM margins (Gross Profit Margin -0.24, Operating Profit Margin -0.94, Net Profit Margin -0.96), has made high-profile investments and established a niche in adventure vehicles. AIEV's broader model range for everyday use could be a differentiator, but it must demonstrate cost-effective designs and faster innovation to counter Rivian's momentum.

AIEV's competitive advantages, or "moats," are primarily rooted in its proprietary modular chassis and battery technologies, which promise lower investment, reduced production time, increased range, faster charging, and lower ownership costs. These could foster customer loyalty, enable superior margins, and improve capital efficiency if successfully commercialized. However, significant vulnerabilities include its smaller scale, which can lead to higher per-unit costs, and potential technological gaps in areas like autonomous features compared to market leaders. High barriers to entry in the EV industry, such as substantial R&D costs, regulatory hurdles, and complex supply chains, while protecting AIEV from new entrants, also disproportionately favor larger, more financially robust incumbents.

Outlook and Risks: A High-Wire Act

AIEV's outlook is characterized by continued uncertainty and significant challenges. The company explicitly expects to incur substantial operating losses for the foreseeable future. Its product roadmap indicates no new vehicle models are anticipated until at least 2030, placing immense pressure on the success of its initial four planned models. The company has also set ambitious earnout targets for its shareholders: Tranche 1 shares (5 million) vest if sales/revenues reach $42.20 million by December 31, 2025, and Tranche 2 shares (15 million) vest if sales/revenues reach $415.00 million by December 31, 2026. Given the company's current zero revenue, these targets appear highly speculative, and management could not reasonably assess the performance condition for 2025.

The most pertinent risks for AIEV are existential. The "going concern" doubt, driven by persistent operating losses and critically low liquidity, is paramount. The uncertainty surrounding the $13.11 million prepaid forward contract and the ongoing legal proceedings involving the principal shareholder further compound liquidity concerns, potentially impacting future financial support. The company's delisting from Nasdaq and subsequent trading on the OTCQB Venture Market (effective June 5, 2025) significantly impairs its ability to access capital markets and attract investors. As an early-stage company with no commercially released vehicles and no experience manufacturing at scale, AIEV faces substantial commercialization and cost control risks. Its dependence on a limited number of models and the effectiveness of third-party distribution networks also pose significant threats to its future revenue and financial stability.

Conclusion

Thunder Power Holdings, Inc. presents a compelling narrative of technological ambition within the transformative electric vehicle sector. Its proprietary modular chassis and battery innovations offer a theoretical pathway to differentiated, cost-efficient, and high-performance EVs, a vision further bolstered by its strategic expansion into integrated clean energy solutions through the TW Company acquisition. This foundational technological promise and strategic diversification form the core of any potential investment thesis.

However, this vision is currently overshadowed by a stark financial reality. AIEV's complete lack of revenue, persistent operating losses, critically low cash reserves, and the explicit "going concern" doubt paint a picture of extreme financial distress. The Nasdaq delisting and the uncertainties surrounding shareholder support and a key prepaid asset underscore the company's precarious liquidity position. While AIEV's technological approach holds promise, its ability to translate this into commercial success and generate sufficient cash flow remains unproven and highly challenged. For investors, AIEV represents a high-stakes, speculative opportunity, where the long-term potential of its technology and strategic pivot must contend with immediate and severe financial headwinds. The company's future hinges on its ability to secure substantial new financing and execute flawlessly on its commercialization and diversification strategies.