While Nikola (NASDAQ: NKLA) is struggling to regain its. credibility at hydrogen summit, new players are entering the EV field. Hyliion (NYSE: HYLN) made its debut on Wednesday after the electric-vehicle startup closed its merger with blank-check company Tortoise Acquisition. Then there is Ideacom.
Hyllion
Hyliion has completed its business combination with Tortoise Acquisition which was approved by TortoiseCorp stockholders on September 28. Hyliion plans to make the all-electric ERX Hypertruck. With intense competition in the EV field, Hyllion did not waste its time and resources on an IPO and opted for SPAC, just like Nikola last year. The merger provided Hyliion with $560 million to develop and commercialize its electric trucks.
Since it was founded in 2015, Hyllion’s focus was on selling components that make commercial trucks increase their efficiency and reduce their emissions. But its aim is to build electric powertrain systems that will revolutionize commercial transport industry. It is set to compete directly with Tesla to be one of the first companies to bring electric trucks to market at scale, although it is following a different path to this goal. Many investors believe that HYLN has superior technology given that its engines are designed to have more range and carry a heavier load compared to prototypes of other EV makers.
One of the most impressive parts of this new public company is that its founder and CEO, Thomas Healy is 28 years old. With this listing, his stake in HYLN is worth $1.4 billion, making him one of the youngest self-made billionaires.
Additional source of revenue
But HYLN has another future source of revenue, its cloud-based, software system that it’s developing for trucks that collect data, provide analytics updates in real-time. This system should result in increased optimization for each vehicle. It adds its business model a subscription package while also reducing issues with maintenance and leading to longer lifetime value in addition to improved battery efficiency and savings on fuel costs. What Hyllion is bringing to the table does sound revolutionary.
Revenue
For now, despite pre-orders, HYLN is only expected to generate $1 million in revenue with $8 million expected next year. Its electric powertrain won’t be widely available until 2022, but its internal forecasts expect revenue of $344 million in 2023. Moreover, once it scales up production of its powertrains, revenue is expected to reach $2.1 billion in 2024.
Fisker
Fellow EV startup Fisker is awaiting a key shareholder vote on October 28 on its proposed merger with Spartan Energy Acquisition (NYSE: SPAQ). Fisker plans to produce the all-electric Ocean SUV. If the deal goes through, Fisker’s trade ticker will be FSR. On Wednesday, Fisker also announced that it will shift headquarters from Austin, Texas, to Manhattan Beach, California.
Ideanomics
Ideanomics (NASDAQ:IDEX) is a global company that merges the power of EVs and fintech. It facilitates the adoption of commercial EVs as well as supports next-generation financial services. Its electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity, as well as financing and charging solutions. The company coined this model as sales to financing to charging (S2F2C). Ideacom just announced that its MEG business experienced sequential growth throughout Q3, and that its Q4 is off to a good start with 440 units pending delivery. This growth, fueled by a combination of previously announced deals, along with improvements in its operational efficiency, helps the company achieve its goals for 2020 and sets the stage for growth at scale going into 2021, according to its CEO, Alf Poor. However, the true value of Ideanomics lies in providing customers and partners across the globe with more efficient solutions for a greener economy as it is present in the U.S., China, Ukraine, and Malaysia. This is a trend which will only become stronger with time and Ideanomics is positioned well to benefit from it.
Nio has been exciting investors this week
Nio (NYSE: NIO) stock climbed 23% on Wednesday after JPMorgan’s (NYSE: JPM) forecast that it will take a 30% share of the premium EV market that Tesla dominates. Today, it has been labelled as a ‘buy’ by Citigroup Inc (NYSE:C) and is rising to a new record.
Outlook
Newcomers will face significant challenges in scaling production, while the stock is already pricing in significant amounts of future growth. In order to be successful, they must produce their EV offering at a scale so within the next couple of years given the number of competitors aiming for this massive market opportunity. History has taught us that it’s not an easy task to achieve these targets. We don’t even know whether Nikola will successfully produce its Badger at scale to justify its valuation. Tesla has been on a crazy ride this year with its shares are up about 435% year to date, but there were many bumps along the road when success did not seem to be in the cards. Overall, this is an opportune time for a debut in the EV field as many companies have seen massive gains. Investors are valuing them based on their total addressable market, future revenue growth, the strength of their technology and powertrain system as well as to where they stand in comparison to Tesla. But they are still in their infancy and only time will tell if they will be able to gain a legitimate foothold in the EV playfield.
This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com