There are several reasons to deeply believe in the long-term secular tailwind behind the electric vehicle space.
First, according to Morgan Stanley research, about $67 trillion is set to be transferred over the next decade through inheritance from the Boomers to the Zoomers and Millennials.
Hence, investment firepower will flow toward people who want to see a defining transition from gas-powered to electric on the highways.
And second, we have seen no new investment in fresh sources of supply for oil since crude crashed in April of last year at the outset of the pandemic. Fear has metastasized into ESG activism. The result is likely to be an imbalance that sees oil prices continue to rise. That will firm up demand for cars powered by alternative energy sources.
This is a long-term dynamic because it takes 2-3 years to develop new oil discoveries. If exploration and discovery budgets are being cut – as we are seeing at Exxon, Chevron, and Shell already – then the tailwind behind higher oil prices is going to be difficult to suppress.
The combination of these two powerful secular themes will help to drive consistent growth in the EV space.
With that in mind, we take a look at a few of the most interesting EV names, including Tesla Inc (NASDAQ: TSLA), Fisker Inc (NYSE: FSR), KULR Technology Group Inc (OTC US: KULR), and Nikola Corporation (NASDAQ: NKLA).
Tesla Inc (NASDAQ: TSLA) frames itself as a company that designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers sedans and sport utility vehicles. It also provides electric vehicle powertrain components and systems to other manufacturers; and services for electric vehicles through its company-owned service centers, Service Plus locations, and Tesla mobile technicians. This segment sells its products through a network of company-owned stores and galleries.
The Energy Generation and Storage segment offer energy storage products, such as rechargeable lithium-ion battery systems for use in homes, commercial facilities, and utility grids; designs, manufactures, installs, maintains, leases, and sells solar energy systems to residential and commercial customers; and sell renewable energy to residential and commercial customers.
Tesla Inc (NASDAQ: TSLA) recently announced its production data. The company produced just over 180,000 vehicles and delivered nearly 185,000 vehicles.
The release noted, “We are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity. The new Model S and Model X have also been exceptionally well received, with the new equipment installed and tested in Q1 and we are in the early stages of ramping production.”
And the stock has been acting well over recent days, up to something like 8% in that time.
Tesla Inc (NASDAQ: TSLA) generated sales of $10.4B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -3.3% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($17.4B against $14.9B).
Fisker Inc (NYSE: FSR) bills itself as a company developing the most “emotionally desirable and eco-friendly electric vehicles on Earth.
Passionately driven by a vision of a clean future for all, the company is on a mission to become the No. 1 e-mobility service provider with the world’s most sustainable vehicles.
Fisker Inc (NYSE: FSR) recently announced it has signed a Letter of Intent (LOI) with the Mekonomen Group to provide a range of after-sales services for the Danish, Norwegian and Swedish markets. Consistent with Fisker’s asset-lite and digital-forward business model, the Mekonomen Group will provide outsourced solutions covering areas including vehicle delivery, service/maintenance, fleet management, mobile fleet servicing, and refurbishment.
“From November 17, 2022, we will start production and deliveries of the Fisker Ocean SUV, with Denmark, Norway, and Sweden among the first European markets to launch,” commented Fisker Chairman and Chief Executive Officer, Henrik Fisker. “Supporting a great product must be an equally great ownership experience. Partnering with the recognized leader in service and logistics across Scandinavia will be an important part of delivering excellence to our customers.”
And the stock has been acting well over recent days, up something like 10% in that time. FSR shares have been relatively flat over the past month of action, with very little net movement during that period.
Fisker Inc (NYSE: FSR) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($985.4M against $11.6M).
KULR Technology Group Inc (OTCMKTS: KULR) is an interesting stock with clear ties to the EV space. The company develops, manufactures, and licenses next-generation carbon fiber thermal management technologies for batteries and electronic systems. The company offers lithium-ion battery thermal runaway shields; fiber thermal interface materials; phase change material heatsinks; HYDRA TRS battery storage bags; internal short circuit devices; and CRUX cathodes.
Its technologies are used in electric vehicles and autonomous driving systems, artificial intelligence and cloud computing, and energy storage, and 5G communication technologies. It developed some of its technology solutions as part of its partnership with NASA.
KULR’s top-tier technology status in the space was augmented this week by a couple of key announcements. The first noted its partnership with Marco Andretti in the 105th Running of the Indianapolis 500 this Sunday, May 30, 2021.
The second deals with the fact that the United States Patent and Trademark Office has awarded it a patent on the company’s Thermal Runaway Shield (TRS) – a passive propagation resistant solution designed and successfully tested to reduce the hazardous risks associated with the thermal runaway in lithium-ion battery packs. This is the third patent the Company has been granted on its TRS technology.
According to its release, the company’s TRS is a sleeve-like shield that surrounds and separates individual cells in multi-cell packs and contains carbon-fiber core and liquid coolant. The unique combination and configuration of the shield passively draws intense heat of cell failures away from nearby cells while dousing the failed area in a cooling and fire-prevention liquid. The TRS product is used by NASA to transport to and store batteries aboard the International Space Station.
“Securing this patent is the continuation of our progress in making batteries safer,” said Dr. Timothy Knowles, co-founder and Chief Technology Officer of KULR. “We are extremely proud of the development of our patent portfolio. This new issuance expands the comprehensiveness of our battery safety technology covering disastrous battery failures.”
KULR Technology Group Inc (OTCMKTS: KULR) managed to rope in revenues totaling $208K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of 297.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($8.9M against $2.9M).
Nikola Corporation (NASDAQ: NKLA) promulgates itself as a company globally transforming the transportation industry.
As a designer and manufacturer of zero-emission battery-electric and hydrogen-electric vehicles, electric vehicle drivetrains, vehicle components, energy storage systems, and hydrogen station infrastructure, Nikola is driven to revolutionize the economic and environmental impact of commerce as we know it today.
Nikola Corporation (NASDAQ: NKLA) recently reported financial results for the quarter ended March 31, 2021.
“During the first quarter Nikola continued to deliver on our previously communicated milestones and execute on our business plan,” said Mark Russell, Nikola’s Chief Executive Officer. “We have had continued success in commissioning and validating the Nikola Tre BEVs, and are nearing completion of both our Ulm, Germany and Coolidge, Arizona manufacturing facilities.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. NKLA shares have been moving higher over the past week overall, pushing about 21% to the upside on above-average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 30% in that time on strong overall action.
Nikola Corporation (NASDAQ: NKLA) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($763.8M against $71M).
DISCLAIMER: EDM Media LLC (EDM), is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. EDM is NOT affiliated in any manner with any company mentioned herein. EDM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses, and may NOT sell, offer to sell, or offer to buy any security. EDM’s market updates, news alerts, and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. EDM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed EDM has been compensated thirteen thousand dollars for news coverage of the current press releases issued by KULR Technology Group Inc (OTCMKTS: KULR) by a third party.
EDM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and EDM undertakes no obligation to update such statements.
EDM Media LLC