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Nxu Shareholder Letter | Q3 2023 

Today, <a href="https://investors.nxuenergy.com/news-releases/news-release-details/nxu-inc-announces-30-million-public-offering-common-stock" rel="noopener noreferrer" target="_blank">Nxu announced a $3 million public offering of common stock</a>. The offering is expected to close on or about Oct. 23, 2023, subject to customary closing conditions. This capital raise positions Nxu to execute against the key milestones we’re working toward in the near future: continued revenue-generation through charging field trials and development of our first public charging site in Quartzsite, Ariz. &nbsp;Additionally, this capital raise strengthens our balance sheet, which is a pivotal part of our strategy for maintaining <a href="https://nxuenergy.gcs-web.com/static-files/a4f09f66-bf39-4397-95c7-baa3e95b6c92" rel="noopener noreferrer" target="_blank">compliance with Nasdaq</a>. Our appeal hearing has been scheduled for Dec. 14, 2023. &nbsp;We’re continuing the march toward our vision of a future where energy is harnessed in a way that is abundant and accessible, to make electric mobility viable.&nbsp;&nbsp;Nxu One Megawatt+ Charging System: Product Launch and Public Field Trials&nbsp;<ul><li>Nxu is creating EV charging and energy storage solutions for the infrastructure we need to power our electrified future. <a href="https://arstechnica.com/cars/2023/09/powerful-new-ev-charger-starts-field-tests-in-arizona-this-weekend/" rel="noopener noreferrer" target="_blank">The first product</a> in that lineup is our Nxu One Megawatt+ Charging System and we had the pleasure of launching it to the public on Sept. 28 during National Drive Electric Week. <a href="https://investors.nxuenergy.com/news-releases/news-release-details/nxu-one-megawatt-charging-system-delivers-16mwh-and-demonstrates" rel="noopener noreferrer" target="_blank">Public use and response to date has been overwhelmingly positive</a>, and we surpassed 1.6MWh in the opening weekend, alone. We’ve seen a variety of EV OEMs charge with us, from Tesla and Audi, to Rivian and Fisker. And interest is growing, as we see additional customers each week, including repeat customers. &nbsp;</li></ul>First Major Highway Megawatt+ Charging Station: Quartzsite, Ariz.&nbsp;<ul><li>Nxu is under contract to purchase land in <a href="https://investors.nxuenergy.com/news-releases/news-release-details/nxu-announces-first-megawatt-charging-site-along-major-highway" rel="noopener noreferrer" target="_blank">Quartzsite, Ariz</a>. that will be the permanent site of our first Megawatt+ charging experience on a major highway. Strategically located on Interstate 10 between Arizona and California, the Quartzsite location will <a href="https://www.azfamily.com/video/2023/10/11/heres-how-arizona-companies-are-working-improve-ev-fast-charging-capacity/" rel="noopener noreferrer" target="_blank">alleviate EV drivers’ charger anxiety</a>, allowing them to charge up while enjoying much-needed amenities like bathrooms and air conditioning.&nbsp;&nbsp;</li></ul>These past few months have been pivotal for us. They haven’t been easy, but they’ve been important, and revealed some important learnings along the way. We’ll keep charging forward.&nbsp;&nbsp;

A Message from Nxu

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! 

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 

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>!

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Nxu Shareholder Letter | Q3 2023

A Message from Nxu

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

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