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TeraWatt touts $1 billion raised

Sep 13, 2022
Illustration of an electric vehicle plugged in, the charging wire has dollar bill signs running inside of it towards the car.

Illustration: Aïda Amer/Axios

TeraWatt, a fleet charging network company, has surpassed $1 billion in private funding raised following a fresh injection of cash, the company tells Axios.

Why it matters: Building out a nationwide network of EV chargers is a capital-intensive undertaking.

Details: TeraWatt raised $100 million in capital when it launched back in May 2021, and says it has secured additional undisclosed funding to push past the $1 billion mark.

  • Funds managed by Vision Ridge Partners led the fresh infusion of capital, while existing investors Keyframe Capital and Cyrus Capital increased their capital commitments.
  • The funds came over the past six months, CEO Neha Palmer tells Axios, and Vision Ridge Partners will gain a board seat with its recent investment.

How it works: TeraWatt buys land near highways or other major logistics routes with the intent of building charging sites for EV fleets, including mid- and heavy-duty electric trucks.

Between the lines: TeraWatt's approach to EV charging requires quite a bit of upfront capital given it is purchasing land and building the sites itself.

  • However, the owned-and-operated sites stand to provide a steady stream of revenue once operational, without the caveats of any middlemen.

The bottom line: Investors are reacting to the Inflation Reduction Act by funneling funds into the companies that stand to benefit most from tax credits, including TeraWatt.

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