Tom Nash
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We need to talk about Hyliion Stock
🕑 Added 2021-06-06 07:42:10 +0000 UTCHyliion (NYSE:HYLN) Update: After a great debut in July 2020, when the stock rose to $53, which is 5x in a few weeks, HYLN came crashing down and is currently trading at $11.5 per share, so what happened was I wrong about this company? In my October 19, 2020 video ($23 per share price at the time) I said I like this company long term, but now it seems it lost 50% of its value since, so is it time to write it off as a bad company?
Hyliion's biggest issue is that its not a traditional EV company, i fact, its taking a different approach vs the entire EV industry. First, its TAM is smaller focusing strictly on Class 8 trucks, going head to head with the Tesla Semi (RIP the Nikola One and Two and the great computer renders they made).
The main issue investor have with this company that its a great business but its not aiming for a 1 trillion valuation like Tesla. Hyliion’s electric trucks run on natural gas, which produce electricity to power the trucks. The existing infrastructure for refueling natural gas is already in place and the numbers make a lot of sense as well with faster and simpler refueling vs an electric truck. Every minute the truck is parked charging, you are losing money, simple, and with the size of the batteries, the extra weight the trucks have to carry and the lack of commercial trucks charging infrastructure, pose a real challenge.
Hyliion can be a dominant force in EV class 8 trucks but you will need patience to let it do its thing. In the long run, this can be a $26 stock if they can execute on the promise, simply because the class 8 trucks business needs a real immediate solution which can be deployed quickly and cheaply and they seem to have it.
Bottom line, while inflation and rotation hit this stock hard, fundamentals have no changed for the worst. In fact, Hyliion is working on a next-gen battery module with Toshiba that claims to be 40% more effective.
Hope this clarifies the issue, Tom.
Comments
Generico Fakero
I don't invest based on short squeeze probabilities Pete, I thinks its a fair price to pay for a good company though so I would not short it
Peter Socha
The Toshiba battery was announced a while ago when I remember it got a boost. I was expecting a lot more order announcements though. With a 20% short interest, do you consider it a good candidate for a short squeeze when compared to Workhorse who are at 48%?
