Dear Valued Shareholders,&nbsp;&nbsp;I want to take a moment to address some of the concerns that have understandably arisen due to evolving market conditions. Let me assure you that as Founder and CEO of Nxu, I am wholly committed to ensuring that our company not only weathers these challenges but continues to thrive and progress.&nbsp;&nbsp;Nxu remains steadfast. We are guided by an evolving strategic vision and will continue to prove our ability to adapt, innovate, deliver, and maintain a strong footing regardless of circumstances.&nbsp;&nbsp;Our commitment to progress is unwavering, and we strive to push the boundaries of what’s possible. Nothing worth doing is easy, and we want to emphasize that the process for groundbreaking innovations inevitably requires intricate engineering and meticulous quality assurance. Easy isn’t what we’re aiming for. Doing things the right way requires more money, more time, and more effort.&nbsp; We will never compromise by cutting corners. Our long-term success will be measured by our impact. &nbsp;I'm asked the same questions by both current and prospective employees, investors, and supporters:<ul><li>What’s the current financial state of Nxu?&nbsp;&nbsp;</li><li>How much runway do you have?&nbsp;&nbsp;</li><li>What does the future look like?&nbsp;</li></ul>My response is simple and consistent. This is a startup, it’s risky. And no day is the same, so I can’t tell you what tomorrow brings, but I can tell you there is no limit to where we can bring value. To do something that is impactful, that is long lasting, that has the potential to truly change the world is an incredible opportunity and unimaginable challenge all in one.&nbsp;To change the world, you must be willing to take risks. You must be willing to do the hard things. You must be willing to expend more time, energy, and effort. You must also be willing to make mistakes.&nbsp;&nbsp;Every technology component we build, as evidenced by what we recently delivered, has a purpose. Each must be a marketable avenue to growth for Nxu. We do not just build packs and cells, we develop and manufacture technology across the mobility and energy sectors. The product we shipped a few weeks ago was the first in a series of specialized components and products being developed here at Nxu to be implemented across the mobility and energy industries&nbsp;Our team’s determination, resilience, and adaptability enabled us to deliver this technology system. Despite being faced with innumerable challenges, the Nxu team’s capacity to execute and unwavering commitment to this program showcases our customer-centric, nimble minded tenacity &nbsp; &nbsp;In upcoming quarters, our focus on building a path towards an infinite electric future remains razor-sharp. You can expect from us a continuation of our unwavering commitment to:&nbsp;<ol><li>Innovation – We will continue to innovate, creating solutions that not only address today’s challenges, but anticipate and shape tomorrow’s opportunities. We believe innovation knows no bounds.&nbsp;</li><li>Execution – We will deliver on our commitments to you and the broader market.&nbsp;</li><li>Communication – Clear communication is key. We will keep you updated on our progress, challenges, and strategies to ensure you are informed each step of the way.&nbsp;&nbsp;</li></ol>Regardless of the headwinds, Nxu is not a company that quits. We’ll keep going, we’ll keep doing the hard things and we’ll achieve our ambitious vision of a future where energy is abundant and accessible.&nbsp;&nbsp;&nbsp;Sincerely,&nbsp;&nbsp;Mark Hanchett&nbsp;Nxu Chairman, CEO, and Founder&nbsp;

A Letter to Shareholders from Mark Hanchett, Founder and CEO of Nxu

As EV sales continue to skyrocket across the nation, the threat of cities and towns experiencing local energy crises increases too. Our nation’s local electrical utilities in their current state cannot keep up.The main factor causing this issue is EV charging at home. As high-power home charging grows in popularity, many EV owners are installing Level 2 (240-volt) chargers, which charge six times faster than a standard 120Vac outlet. The hiccup is the average home has a 200-amp electrical panel and your city’s electric utility expects you to use no more than 20% of your home’s total power (48kVA) at a continuous rate, except for running air conditioning units, washing machines, electric stoves, or hot tubs, which are large energy consuming systems.Now add EV charging. One single EV typically takes up to 50amps of power (that’s 1/4 to 1/2 of a house’s total available power) and is a much longer continuous peak draw, because EV charging runs constantly for an average of four to six hours. All said, home charging puts a heavy strain on your home and local utility transformer.When multiple households in a neighborhood charge their EVs at the same time (typically in the evening or overnight), this can potentially overload the local power grid, which requires expensive upgrades of neighborhood electrical systems to prevent. Charging at night also causes a surge of power usage for the utility which increases the demand of non-renewable sources of energy, creating the need for “peaker” plants to come online (known as the duck curve). These plants are the most expensive and highest polluting power systems to run, which, for many EV drivers, negates why they switched to an EV in the first place. Local electric utilities are working tirelessly to prepare for this level of power use in their current infrastructures, but it will cost billions in heavily time-consuming upgrades to accommodate the rapidly growing numbers of EVs.There is also another hurdle for EV owners to consider. As legislation is pushing for certain high-energy-consuming appliances (stoves, water heaters, dryers) to be fully electric, this will in-turn further increase the energy demand, according to the U.S. Energy Information Administration (EIA).EV owners need a more practical solution, and that solution is home energy storage systems. Home energy storage is an innovative technology that will allow EV owners to transform how they charge their cars and power their homes. By integrating energy storage with the existing grid infrastructure, utilities can also better manage resources and reduce the grid strain caused by EV charging.The bonus is these systems can also reduce electricity costs by allowing EV owners to charge their vehicles at any time, including on-peak hours when electricity rates are higher. A study by the Rocky Mountain Institute found that deploying energy storage systems in homes could save consumers up to 49% on their electricity bills. Home energy storage systems can also supply backup power during blackouts or other grid disruptions, ensuring a consistent supply of electricity for the home.Innovative community-based energy storage systems can also serve entire neighborhoods to supply efficient energy management and distribution for multiple homes through one system. By pooling this resource, shared storage systems slash the costs of implementing energy storage technologies, making them accessible to more households and foster a more resilient grid to support a sustainable future.Nxu, Inc., a sustainable energy solutions company in Mesa, Arizona, is developing this advanced battery technology to revolutionize the energy storage landscape and help mitigate the strain on the grid from EV charging and more. The Nxu energy storage system stores excess energy that is generated during off-peak hours and discharges it during peak demand periods, stabilizing the grid and reducing the need for costly infrastructure upgrades.As the electric transportation landscape continues to evolve, the need for grid modernization and innovative solutions such as Nxu's energy storage systems becomes increasingly urgent. Utilities, policymakers, and consumers must collaborate to develop strategies that ensure sustainable EV growth. By investing in energy storage systems, smart charging technologies, and renewable energy sources, we can ensure a smooth transition for electric transportation and a cleaner, more resilient future for all.Want more info like this? Follow Nxu on <a href="https://nxuenergy.com/#nav-menu" rel="noopener noreferrer" target="_blank">social</a> and <a href="https://nxuenergy.com/" rel="noopener noreferrer" target="_blank">subscribe</a> to our newsletter.&nbsp;

The Need for Energy Storage Solutions is Urgent. Here's Why! 

Energy

As EV owners install home chargers at an exponential rate, the trend overlooks a growing demographic of people who live in multi-unit dwellings (aka MuDs) who may not have a place to put one. So, what does the future of EV charging look like for EV owners who live in MuDs?Nearly <a href="https://www.census.gov/programs-surveys/ahs.html" rel="noopener noreferrer" target="_blank">44 million residences</a>, or 31.4% of housing, in the U.S. today is multi-unit (also referred to as multifamily), which includes apartment buildings, condominiums, townhouses and mixed-used developments, according to a 2019 survey conducted by the American Housing Survey and the U.S. Census Bureau.Many of these residents are undoubtedly buying EVs, as, not surprisingly, <a href="https://www.coxautoinc.com/market-insights/q2-2023-ev-sales/" rel="noopener noreferrer" target="_blank">EV sales</a> in the US continue to skyrocket. Nearly 300,000 new electric vehicles (EVs) were sold in the U.S. in Q2, a record on its own and an increase of 48.4% from Q2 2022. Add to this President Biden's dedication to the IRA, which aims to reach <a href="https://www.un.org/en/climatechange/net-zero-coalition" rel="noopener noreferrer" target="_blank">net-zero carbon emissions by 2050</a>, there are many incentives to driving electric.Doing the math, these factors meshed together means there’s a greater chance that EV owners who live in MuDs can charge where they live someday soon. But there are some huge issues for building owners to overcome, such as demand, cost recovery, charging options, and logistics, according to the Plug-In Electric Vehicle Charging Guide by California Plug-In Electric Collaborative.If you are a MuD resident and you want to nudge the process along, here are a few benefits you can share with your property owner or manager to help convince them to install EV chargers:+Adding electric vehicle charging stations to multifamily housing can help attract and retain residents, according to the <a href="https://www.energy.gov/" rel="noopener noreferrer" target="_blank">US Department of Energy</a>+Building owners may be able to take advantage of <a href="https://afdc.energy.gov/laws" rel="noopener noreferrer" target="_blank">state or utility incentives</a> for installing charging infrastructure+Installing EV chargers can give the property a forward-thinking, sustainable appeal which can be used to attract new residents, particularly EV owners+Installing EV chargers can help properties earn points toward <a href="/content/Energy%20&amp;%20Environmental%20Design%20(LEED)%20Certification" rel="noopener noreferrer">Leadership in Energy &amp; Environmental Design (LEED) Certification</a>, a stringent code for buildings to qualify as “green” California was one of the first states to jump on installing EV charging at MuDs and offers us a few <a href="https://energycenter.org/sites/default/files/docs/nav/programs/pev-planning/san-diego/SDG&amp;E%20Multi-unit%20Case%20Studies%20CFT%20REVI.pdf" rel="noopener noreferrer" target="_blank">successful case studies</a>. Here are a few more things to consider to advocate for getting chargers installed where you live:+Learn the laws in your local community and state. See if you can jump on any initiatives to create new laws that support EV charging+Talk to your neighbors and gather support of the EV or would-be EV owners in your building+Research different chargers. The units and features you choose will depend on your specific property’s requirements and will determine associated costs+Figure out the costs of chargers and how much you and the other residents are willing to cover of the cost of charger installation and electricity+Look into <a href="https://afdc.energy.gov/laws" rel="noopener noreferrer" target="_blank">state and regional incentives</a> for charging station installations may be available to individuals or businessesAt Nxu, our stance is the nation's energy infrastructure simply isn't ready for the demand that EVs are creating. We are working around-the-clock to develop battery charging and energy storage solutions that will help create a sustainable infrastructure to keep EVs moving forward.To hear more about the future of energy solutions and what Nxu's working on, check out our recent news segment on <a href="https://www.fox10phoenix.com/news/are-demands-for-electric-vehicles-slowing-down-heres-what-you-should-know" rel="noopener noreferrer" target="_blank">Fox 10</a>.

Tips for EV Owners Living in Multi-Unit Dwellings 

Charging

Fox 10 visited Nxu’s manufacturing facility in Mesa to talk with our fearless leader Mark Hanchett about the need for a sustainable energy infrastructure and how Nxu is creating the big solutions the EV industry needs to keep moving forward.

Watch Our News Segment on Fox 10

And just like that, the NxuOne charger is NACS compatible! In this 90-second video, Victor Atlasman explains why Nxu is committed to integrating the NACS charging cable and connector into our proprietary megawatt-plus charging and energy infrastructure. <a href="https://www.youtube.com/watch?v=alRcwXksRIo" rel="noopener noreferrer" target="_blank">Watch now</a>!

Watch Our NACS Charging Capability Demonstration

As a driver approaches her luxury SUV, the Apple Car Key feature on her phone unlocks the door with handsfree ease. Sitting in the driver’s seat, she’s greeted by a "no phone present" notification on the dashboard and realizes the personalization of the cabin is her husband’s.&nbsp;Meanwhile, the owner of an EV compiles a list of his vehicle’s electronic glitches: a failed charging connector, false tire pressure warnings, delayed boot of the infotainment system, screen glitches, and a faulty backup camera.&nbsp;&nbsp;Bugs, bugs, bugs...Bugs are one thing; bad user interface (UI) is another. Over the past 20 years, as color displays have become a prominent feature in vehicles, we have seen few examples of well-executed user experience (UX) and UI in automotive design. Sixteen years after smartphones have paved the way, cars are rolling off the assembly line with complicated and unusable interfaces, frustrating features, and ineffective design. Some of the specific issues include:&nbsp;•	Messy menus and sub-menus&nbsp;•	Lack of self-explanatory designs&nbsp;•	Useless or underutilized features&nbsp;•	Dead space but small touch targets&nbsp;•	Outdated design or pseudo fancy graphics&nbsp;•	Too many steps needed to find the desired function&nbsp;&nbsp;&nbsp;And the list goes on...&nbsp;&nbsp;How did we get here?&nbsp;Thousands of talented software engineers and UI/UX designers work at these companies, so how is the automotive industry still in this situation today? Years have passed since automakers started integrating more and more electronics into vehicles, painting themselves into a corner. Whether they realize it or not, the problem will just keep getting worse.&nbsp;&nbsp;Car makers are assemblers. They’re mechanical and manufacturing companies, not electronics makers. They assemble control units the same way they assemble structures and body panels. But this approach doesn't work – it's counterintuitive and profoundly inefficient.&nbsp;Modern vehicles are made with 40 to over 100 control units per vehicle. Some of these control units come from a single supplier, but easily more than 10 tier 1 vendors build them. This means that many of the control units are developed with chips from multiple vendors and various software stacks and hardware platforms, and the work is replicated numerous times.&nbsp;&nbsp;At their core, most automotive control modules don’t differ much: they’re tiny computers with a communication chip with inputs and outputs that perform similar tasks. But the pieces don’t often work together as planned, despite months and months of validation, resulting in vehicles like the two examples above.&nbsp;But that’s not even the worst part. The worst part is the OEMs can't fix the bugs. Why not? Because they don't own the tech and tier 1 vendors charge high fees to change a few lines of code. OEMs don't often know where to start since they don't have access to the code that’s running on their own vehicles.&nbsp;The issue is the same for UI. Frankly said, the automotive industry doesn't know what to do with good software or UI talent. The processes, mindsets, and politics are counterintuitive to what software development requires. Regardless of the amount of talent invested in development, the results are almost always subpar.&nbsp;&nbsp;Committees or A/B testing dictate the behavior of an interface, making it confusing to use. Multiple teams create various pages of a user interface, time is wasted in sync meetings, and massive, soulless hierarchies full of pseudo-experts kill creativity and deliver sub-par results.&nbsp;&nbsp;So, can automakers fix this? The short answer is no unless the fundamental approach changes. Sure, OEMs talk about doubling down on bringing software in-house, but instead of developing a complete architecture from scratch, they only develop 10-30 percent and carry too much legacy to really optimize their systems.&nbsp;Even 50 percent may improve things, but it won't solve the problem. The only way to build a true digital product with continuous bug fixes and feature updates that leverage the full potential of sensors and actuators is to start from a blank slate, build all electronics in-house, and strategically control the entire process from start to finish. The auto maker closest to currently achieving this is Tesla, and the real value of that company is in vertical integration and software. But even Tesla got its start with outsourced electronics.&nbsp;&nbsp;The Future of Automotive DesignThe next 10 years are going to be decisive for the automotive industry, and without vertical integration, it’s hard to envision how carmakers could deliver good products.&nbsp;For almost a decade, Apple has had a “worst-kept secret” EV project dubbed "Project Titan", with hundreds of engineers working on mobility and autonomous technologies. A lot of partial information has surfaced, and Apple was rumored to utilize different OEMs’ platforms for their future vehicles.&nbsp;There has been buzz for some time about changes in direction in this project and people leaving or being let go in droves, painting a dire narrative about the supposed failure of this project. However, I think the reality of the situation is simpler…&nbsp;&nbsp;Apple is the paragon of vertical integration. I think it’s highly unlikely they would release a vehicle with a single line of code they don’t control. What is certain is Apple has the resources to build every automotive electronic in-house, as well as other things like traction motors. If they outsourced, it would likely be on the mechanical side, the exact opposite approach to current automotive design.&nbsp;&nbsp;&nbsp;For now, what Apple plans to build is still a mystery, but I bet that whatever the form, factor, size, speed, or way it’s used, they’ll own and control the software and hardware like no other car maker. And it will be a game changer. Unless we get there first!&nbsp;&nbsp;The Nxu Way Nxu, Inc. is charting its own game-changing course in vertical integration. Since its inception in 2016, Nxu, Inc. (formerly Atlis Motor Vehicles) has made the conscious choice to build and own all hardware and software in-house with the goal of simplifying, optimizing, and delivering better experiences for our customers. We developed one hardware/software module called Omega that we use and will use in the huge majority of our electronic modules.&nbsp;We’re on an incredible journey and the first results are encouraging. At present, we’re set to soon launch our first battery packs with battery cells, hardware and software all researched and developed entirely in house.&nbsp;We believe this will translate into a tremendous competitive advantage in terms of user satisfaction, not only improving software reliability but allowing us to constantly add new features and improve the product to change people's lives for the better. This won’t happen overnight, but our team makes progress every day.&nbsp;&nbsp; To learn more, watch this short <a href="https://www.youtube.com/watch?v=sKqBxe5bOeg&amp;t=45s" rel="noopener noreferrer" target="_blank">video</a>.

The Future of Electronics in Automotive Design 

On Saturday, April 22, Nxu hosted an Earth Day open house and free charging event at its headquarters in Mesa, Arizona. Dozens of enthusiastic EV owners lined up to charge their vehicles at Nxu’s groundbreaking megawatt charging station, tour the facilities, and learn more about EV charging.Victor Atlasman, Nxu’s Director of Engineering and Wizard of Charging Stations, brought up a few interesting ways to get the most out of your battery charging efforts. Here’s what he had to say, wrapped up in five fun facts about EV charging – including an EV battery myth-buster or two: Prioritize PreconditioningWhen charging, it’s important to precondition the battery. Various makes and models of EVs have a built-in preconditioning feature that will get the warming started, and many EVs have a built-in battery thermal management system (BTMS) that regulates the temperature automatically. To kick-in the preconditioning process without giving it much thought, set your GPS navigation in your EV to the nearest charging station and most vehicles will automatically precondition, he says. Pretty handy! Charge It UpAlthough some EV gurus may recommend charging your battery to 90 percent, Nxu’s stance is you can comfortably charge our batteries all the way to 100. Victor advises to charge to whatever level what you're comfortable with or the OEM's recommended value. Something important to note is that once your battery reaches around 80 percent, charging will slow down considerably and different charging methods, such as Level 1 (120Vac) or Level 2 (240Vac) or DC fast charging, will also affect charging rates. The slowing down of the charge is a phenomenon called trickle (aka taper or charging taper), which is based on several factors such as battery chemistry, temperature, and charging infrastructure. This is why it takes almost as long to get from 80 percent to 100 as it does to get from zero to 80. However, like most things in life, results can vary.&nbsp;Get Good IntelWhether you’re an EV noob or an EV guru, there’s a lot of info to sift through when it comes to what’s what in EV charging, but unfortunately a lot of it isn’t correct or is outdated. For example, your EV friends and some online sources may tell you that it’s best to avoid fast charging in hot weather since fast charging generates more heat and can stress the battery. However, this info is based on old, outdated information and is now considered an EV myth, like waiting three hours after you swim to avoid cramping, Victor says. Go UndercoverFor those of us in the Northern Hemisphere, summer is almost here! So, what does this mean for EV owners, especially those of us in Arizona where it can hit 120°? Cold affects range more than heat does, says Victor. During the hotter months, it’s a good idea to park out of direct sunlight as much as you can help it, as the AC will have to work extra hard to cool down.The thermal management system in your EV regulates the temp and will cool the battery and prevent overheating, but EVs may experience a decrease in driving range. The air conditioning system in an EV consumes energy and, in hot weather, it needs to work harder to cool the interior, further impacting the overall range. "It won’t have much effect on the battery itself, but if the car is hotter, it will take more power to cool it down,” Victor says.&nbsp;Plan AheadOverall, when it comes to getting the best out of your charging efforts, Victor recommends planning ahead:“Plan your routes and be comfortable with your local charging stations. Once you know your locations and reliability, reduce planning and be comfortable getting less of a charge. You'll get more bang for your buck, meaning the lower state of charge gets faster charging and you'll spend less time waiting, going from charger to charger. Use apps to view uptime and reliability before going to charging stations.” Bummed you missed the Nxu charging event in April? Don’t worry, there will be others.For info about future charging events and what’s happening at Nxu, <a href="https://www.youtube.com/@NxuInc" rel="noopener noreferrer" target="_blank">follow us on social</a> and <a href="https://nxuenergy.com/#subscribe" rel="noopener noreferrer" target="_blank">subscribe to our newsletter</a>.

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A Letter to Shareholders from Mark Hanchett, Founder and CEO of Nxu

The Need for Energy Storage Solutions is Urgent. Here's Why!

Tips for EV Owners Living in Multi-Unit Dwellings

Watch Our News Segment on Fox 10

Watch Our NACS Charging Capability Demonstration

The Future of Electronics in Automotive Design

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