Business & Investment

Truck Talk: Risky Business Edition

Welcome to Track Talk. This week we look back at recent SPAC financial report figures. This includes the possibility of waiting for Nicola’s fuel cell truck customers for a long time. Also, who has the highest position in engine manufacturing, Xos mobile energy refueling, etc.

Behind the numbers

As sponsors retreat to the background and younger companies start public trading, investors begin to see how success predictions are in line with reality. The very large red numbers of losses, sometimes interest, taxes, depreciation, pre-amortization net income and income are no exception to the rules. Most investors know that.

So what other insights can we collect from these early reports? Let’s take a look.

Proterra Inc.

Although not a brand new company, although the SPAC was recently lifted, Proterra has been selling electric buses since 2009, accumulating 20 million miles of real electric vehicles. Currently, we are building Proterra Powered and Proterra Energy businesses with similar weight.

Perhaps the biggest news was the “early nine-digit” contract to extend the battery supply contract with LG Energy Solution until 2028 to secure a dedicated battery cell capacity of several gigawatt hours per year. When manufacturing cylindrical cells in the United States, Proterra (NASDAQ: PTRA ) To meet content requirements under the US-Mexico-Canada Agreement.

The lack of cells is a pinch point for electrification across the industry. Due to the shortage of nickel, lithium and cobalt, long-term supply contracts for battery cells have become very important.

“Expected procurement challenges demonstrate the need for a comprehensive supply chain assessment to identify vulnerabilities associated with all risk factors,” said Vertaeon, a software data analytics provider as a service. Co-founder and managing partner Rekha Menon-Varma said. ..

Hyzon Motors

Singapore’s Horizon Fuel Cell Technologies spin-off at the end of the second quarter at the Decarbonization Plus Acquisition Corp in time to report the results. Completed business combination with. Hyzon has earned approximately $ 500 million to expand its fuel cell truck business.

Hyzon (NASDAQ: HYZN) Will ship the first truck to European customers and begin customer testing in the United States in the fourth quarter. It begins with a 30-day loan to Total Transport Services Inc. (TTSI), a port truck and logistics services company in Southern California. In May, TTSI signed a non-binding agreement with Nikola and ordered 100 Nikola Class 8 battery-powered electric vehicle (BEV) and fuel cell-powered electric vehicle (FCEV) semi-trucks.

Hyzon will deliver 85 fuel cell vehicles by the end of this year and will make its first profit in the third quarter. Purchase orders, many of which are non-binding, increased from $ 55 million in April to $ 83 million.

Hyzon uses up to 10 Freightliner Cascadias as test tracks for fuel cell systems. (Photo: Hyzon Motors)

Nikola Co., Ltd.

Nicola (NASDAQ: NKLA) Doing everything possible Distanced from the indicted founder Trevor Milton. Losses were exacerbated by adding workers and spending a lot of money to complete the first phase of the Greenfield Plantsite between Phoenix and Tucson, Arizona. There is no surprise there.

Nicola said it this week Received a grant of nearly $ 2 million To advance research on autonomous refueling technology for future hydrogen stations from the US Department of Energy. Nicola will begin construction by the end of the year at the first hydrogen fuel station, which is part of the final network of 700 stations.

In order for Nicola to sell fuel cell trucks with non-binding reservations, it is important to secure a place for hydrogen fuel. Nicola said in a recent quarterly report with the Securities and Exchange Commission that 47% of orders are for fleets with 100 or less trucks. We may not be able to deliver until “after about 2030”.

Building Dealer Network — Includes Addition of Alta Equipment Group This Week (NYSE: ALTG), To cover the Northeastern United States — another risk listed by Nicola may be addressed: Obtaining permission to sell and deliver the vehicle directly to the customer.

(Engine) The top of the hill

According to WardsAuto.com, Daimler Trucks North America (DTNA) responded to the needs of its own engine, with Cummins Inc in the process. Was defeated by the leadership of engine manufacturing in the first half of the year.

DTNA’s engine brand, Detroit, supplied the largest number of Class 8 engines in North America from January to June, and was an independent engine maker, Cummins.NYSE: CMI) Depends on the 1,299 engine. All Detroit engines were used by the Freightliner and Western Star brands.

Detroit had a 34.5% share of the Group 1 (sub 10 liter) and Group 2 (10 liter and above) engines. Cummins had a total share of 33.5% and supplied engines to all truck manufacturers.

It’s worth noting as Daimler last week how that Group 1 number will be affected in the future. Officially handed over Its medium-sized engine works for Cummins.

it hurts

According to WardsAuto, the United Auto Workers strike at Volvo Trucks North America (VTNA) in April and June hit sales in July. Sales of VTNA decreased by 37.3% from 1,416 units in the same month of the previous year to 888 units.

Throughout the industry, Class 8 sales for the first seven months increased 32.2% from 97,110 in the previous year to 128,376.

Charging on the go

Xos Trucks had a big week.Startup waiting for SPAC on Monday Announced contract to supply 120 medium size to FedEx Ground Trucks for independent service providers. On Thursday, we showed what the vision of billing as a service looks like.

Xos Hub is a mobile charging station that allows fleet customers to access the fleetyard’s charging infrastructure without having to wait for traditional infrastructure installation. The Xos Hub can charge up to 5 vehicles at a time and fits in about 2 parking spaces. The solar array on the roof of the Xos Hub powers cloud-enabled control and safety systems.

Xos Trucks solar-powered portable charger. (Photo: Xos truck)

Not only that. Xos Hub is part of Xos Energy Solutions. This is a new business unit that enables large and small fleets to deploy commercial electric vehicles more quickly. For example, Xos Serve is an infrastructure platform as an on-demand service that includes site evaluation, energy storage development, installation and energy management services.

XOS is primarily focused on medium and large commercial vehicles traveling on routes that return to the base of last miles less than 200 miles per day. NextGen Acquisition Corp, a blank check company. The merger with is underway and may be closed this quarter.

Pay’vig’

Simon Bergson is one of those who call it as he sees. Manhattan Beer Distributors CEO is the decarbonization leader in his business, delivering 45 million cases of beer annually to thirsty New Yorkers. Half of his fleet consists of clean compressed natural gas trucks. And he will almost eliminate diesel engines in the next four years.

After showing the first of the five Volvo VNR Electric trucks he was buying, Bergson explained how a 191,000-square-foot solar array on the roof of Bronx headquarters could help reduce electricity bills. ..

“Cond. Edison must get their vitality,” Bergson said, referring to the gambling term vibrancy, which is familiar to most bettors. It may be explained more accurately when you get the cut and taste.

“The way everything works is to sell power to Con Edison so they can sell it back to us, and they power us and I You can charge a fee to get them back. “

And don’t start with Bergson paying $ 2.6 million in violation of his company double parking his beer trucks around New York each year.

Simon Bergson, CEO of Manhattan Beer Distributors (Photo: Alan Adler / FreightWaves)

That’s all for this week. thank you for reading.You can subscribe to track talk here For delivery to your email on Friday.

Alan



Truck Talk: Risky Business Edition

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