Phoenix Motorcars All-Electric Vehicles Eligible for up to $40,000 Tax Credit Per Vehicle Under the Inflation Reduction Act

Phoenix Motor Inc. (the “Company” or “Phoenix”) (Nasdaq: PEV), a leader in manufacturing of all-electric, medium-duty vehicles, today announced the company is now a qualified manufacturer for the commercial clean vehicle credit under the Inflation Reduction Act.

Phoenix Motorcars’ all-electric commercial vehicle models weighing greater than 14,000 pounds gross vehicle weight rating (GVWR) are eligible for up to $40,000 in tax credits. Tax credits for vehicles weighing less than 14,000 pounds GVWR are available up to $7,500.

On Jan. 1, 2023, the commercial clean vehicle credit became available to businesses and tax-exempt organizations for the purchase of new electric vehicles to incentivize the adoption of electric vehicles and support domestic production. Currently, there is no limit on the number of tax credits a business can claim.

“We are proud to be able to provide clean, safe and environment friendly transportation for those seeking purpose built, all electric vehicles including trucks, buses and cargo vans," Dr. Lance Zhou, CEO of Phoenix Motorcars said. “Supported by the Commercial Clean Vehicle Credit, ownership of an all-electric commercial vehicle will be more affordable.”

Phoenix Motor’s medium duty vehicles provide reliability and efficiency, while helping address climate change. Phoenix Motor vehicles available for tax credit include: Phoenix Shuttle Buses, Phoenix Trucks and Phoenix School Buses. For more information on Phoenix’s vehicle and product offerings visit www.phoenixmotorcars.com/products. To learn more about Phoenix’s affordable financing visit www.phoenixmotorcars.com/solutions/financing-leasing.

About Phoenix Motor Inc.

Phoenix Motor Inc., a pioneer in the electric vehicle (“EV”) industry, designs, builds, and integrates electric drive systems and light and medium duty EVs and sells electric forklifts and electric vehicle chargers for the commercial and residential markets. Phoenix markets its commercial, medium duty EVs (shuttle buses, school buses, municipal transit vehicles and delivery trucks, among others) under its “Phoenix Motorcars” brand. Phoenix intends to bring “EdisonFuture” to market by 2025, which is its light-duty EV truck offering for the recreational and commercial market. For more information, please visit: www.phoenixmotorcars.com.

Forward-Looking Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are no guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s ability to convert concept trucks and vans into production and sales; the Company’s product development timeline and expected start of production; development of competitive trucks and vans manufactured and sold by the Company’s competitors and major industry vehicle companies; the Company’s ability to scale in a cost-effective manner; the Company’s future capital requirements and sources and uses of cash; the Company’s ability to obtain funding for its future operations; the Company’s financial and business performance; changes in the Company’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; the implementation, market acceptance and success of its business model; expectations regarding the Company’s ability to obtain and maintain intellectual property protection and not infringe on the rights of others; and other risks contained in the Offering prospectus and reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, including those set forth in the Risk Factors section of the Company's registration statement and Offering prospectus, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

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