Erayak Power Solution Group Inc. (NASDAQ:RAYA) announced a strategic shift toward developing high-capacity power solutions aimed at supporting artificial intelligence infrastructure in North America, according to a company press release. The company’s shares currently trade around $0.64, giving it a market capitalization of roughly $2.28 million, after a steep decline over the past year tied to operational challenges.
The manufacturer of portable power equipment is working on inverter generator platforms exceeding 13 kilowatts, expanding beyond its current range of 1 kW to 13 kW. As part of the effort, the company is incorporating diesel manufacturing resources to enable higher-output systems designed for industrial uses.
Erayak is also adding Uninterruptible Power Supply functionality to its 9 kW and 13 kW tri-fuel generator platforms. The UPS feature is intended to ensure seamless power transitions for sensitive computing hardware. New power platforms ranging from 4 kW to 13 kW have already entered engineering testing.
At the same time, the company is upgrading its 1 kW to 4 kW portable inverter generators for recreational vehicles and camping markets. Erayak is also exploring battery-powered portable power stations that could be introduced during the upcoming camping season.
The strategic shift comes as the company faces financial pressure. Construction of the main structure for its Ruike Electronics subsidiary facility has reached the halfway stage. The project is currently ahead of schedule and is expected to be completed and delivered in the second half of 2026. Once operational, the site will produce high-capacity power systems and UPS-enabled platforms.
Erayak currently maintains a current ratio of 2.14, indicating that its liquid assets exceed short-term liabilities.
“We are evolving Erayak to be a critical link in the AI power chain,” said Lingyi Kong, Chairman and CEO. “By integrating diesel resources and advancing our UPS-capable inverter technology, we are filling a unique niche: providing the reliable, high-output, and stable electricity that high-performance computing and smart infrastructure demand.”
The company manufactures a range of power solutions, including sine wave and off-grid inverters, gasoline and inverter generators, and battery chargers. Its products are used across agricultural and industrial vehicles, recreational vehicles and outdoor applications.
In other recent developments, Erayak entered into an at-the-market equity sales agreement with Craft Capital Management LLC that allows the company to sell up to $20 million of its Class A ordinary shares. The arrangement operates under a shelf registration statement effective since May 2024 and gives the company flexibility to sell shares on the Nasdaq Capital Market or other venues. No sales have been committed at this stage, and the timing, amount and pricing remain uncertain.
Separately, the company reported a sharp rise in demand for its portable quiet inverter generators following severe winter storms on the U.S. East Coast. According to Erayak, daily unit sales surged about twentyfold starting around January 20, 2026, compared with previous weeks. Nearly 1,000 units were shipped within two days as consumers prepared for potential power outages. These developments underscore Erayak’s recent strategic and operational initiatives.