Show an ad over header. AMP

I am the FIRST

Wall Street is searching for electric vehicle gold

Wall Street speculators are flocking to electric vehicle startups, assigning gigantic valuations to companies that have yet to produce any vehicles, much less any revenue or profits.

Why it matters: Searching for the next Tesla is a risky proposition. It's still unclear how quickly the electric vehicle market will develop, or how large it will ultimately become — and some of the new electric vehicle players are likely to fail.

What's happening: At least nine electric vehicle-related startups have gone public, or will soon, through a so-called reverse merger with a publicly traded shell company. These special purpose acquisition companies (SPACS) open up new paths to public markets for many companies.

  • A handful of other electric vehicle startups are sticking with private financing, some backed by deep-pocketed strategic partners like Amazon, which owns a stake in Rivian, for example.
  • Although they're generally lumped together, hardly any of the newcomers are actually trying to copy Tesla, which — don't forget — struggled mightily at first.
  • Instead, they're trying to broaden the market Tesla created by carving out new niches, and employing different business strategies.
  • Not surprisingly, each company offers a bullish view of the future — along with rosy financial projections — which Barron's cautions are highly speculative.

Here's a partial scorecard to keep track of the players and what sets them apart:

'The electric carmakers:

  • Lucid, backed by Saudi Arabia's sovereign wealth fund, claims its Lucid Air luxury sedan is more efficient than a Tesla, but the $700 million cost of a new factory, now under construction in Arizona, could weigh down the company's growth.
  • Fisker, which went public Oct. 30, is keeping costs down by outsourcing the electric vehicle platform and manufacturing of its Ocean midsize SUV to Magna, a big auto supplier.
  • Canoo, whose SPAC deal should close by year-end, will also outsource production of its electric vans for both consumers and last-mile delivery.

The electric truck manufacturers: Commercial trucks could be first in electrification, which is why companies like Rivian and newly public Hyliion Holdings are targeting fleet customers. Others are too:

  • Lordstown Motors, which started trading Oct. 26, is developing an electric pickup truck for commercial fleet buyers looking to save on fuel costs.
  • Arrival, backed by Hyundai, UPS and Blackstone, plans to build its electric delivery vans in a series of low-cost microfactories.
  • Nikola, the first in the pack to go public, is working on battery-electric and hydrogen fuel cell trucks and it, too, is building a huge factory in Arizona. But a potential partnership with GM is being renegotiated.

Electric vehicle parts and infrastructure:

  • Romeo Systems and XL Fleet are working on electric vehicle powertrain components, while QuantumScape is developing solid-state battery technology. All three are going public through SPAC deals.
  • Chargepoint sells electric vehicle charging equipment to businesses and parking lot operators, and charges them an annual fee for access to the Chargepoint network. It, too, is going public in a reverse merger.

My thought bubble: Building a car company from scratch is capital intensive, which is why so few are successful. Electric trucks make a lot more sense than passenger electric vehicles, since their routes are predictable and they can be charged overnight at a central depot.

  • Of all the electric vehicle-related companies to go public, Chargepoint might be the lowest risk. It requires very little capital, its revenue is recurring, and it's not dependent on selling a lot of vehicles to succeed.

The bottom line: It can be hard to find the winners among all these unproven players, which helps explain the wild ride in electric vehicle stocks.

regular 4 post ff

infinite scroll 4 pff

test 5

shall had shall had shall hAd HAD. sdfsdf

content more

selected test 10 in From Site, test

111added test 9

added external seo phrase

added news internal link to seo phrase

Humans are capable of great kindness and compassion, and there are countless examples of individuals who have made a positive impact on the world through their selflessness and generosity.

One such example is Mother Teresa, who devoted her life to serving the poor and sick in the slums of Calcutta. Through her tireless work and unwavering dedication, she touched the lives of countless people and became a symbol of compassion and selflessness.

Another example is Malala Yousafzai, a young woman from Pakistan who has become a powerful advocate for education and the rights of girls. Despite facing threats and violence, she has continued to speak out and fight for change, inspiring others to do the same.

These are just a few examples of the many good humans who have made a difference in the world. They remind us that one person can make a difference and inspire others to do the same.

It's also important to note that acts of kindness and compassion don't have to be on a grand scale to make a difference. Small acts of kindness, like holding the door open for someone or offering a word of encouragement, can have a big impact on the people around us.

In conclusion, humans are capable of great compassion and kindness, and there are many individuals who have made a positive impact on the world through their selflessness and generosity. They remind us of the power of one person to make a difference and inspire others to do the same. Let's all strive to be good humans, and make our world a better place.



Get Goodhumans in your inbox

Most Read

More Stories