A $15 Billion Electric Vehicle Niche Is Flying Under Wall Street's Radar

News provided by

Aug 03, 2023, 08:00 ET

FN Media Group Presents Oilprice.com Market Commentary

LONDON, Aug. 3, 2023 /PRNewswire/ -- The EV industry is simultaneously a wildly rewarding and wildly risky ride for investors. EV manufacturers are now struggling to stay profitable unless they are Tesla or China's biggest players. Companies mentioned in this release include: Stellantis N.V. (NYSE: STLA), Li Auto Inc. (NASDAQ: LI), Nio Inc (NYSE: NIO), BlueBird (NYSE: BLBD), General Motors Company (NYSE: GM).

In 2022, we saw overall car sales plummet by 8%, but at the same time, EV sales soared by 65%, according to Kelley Blue Book. Still, despite the fact that electric vehicles are now the clear future, growing pains, cash burn and a brutal price war have rendered this a snake pit for investors.

While EV sales are set for a 35% year-on-year increase in 2023, bolstered by national policies and incentives providing further impetus for producers and consumers, some companies are dealing with missed deadlines, lagging production and serious fiscal problems, including bankruptcy.

The over-crowded, brutally competitive EV car space is now undergoing a price war that many won't survive. But this isn't the only EV segment investors should be looking at. There is another $15-billion opportunity in this space, and it means going off-road.

Prime Time for Electrifying the Waterways

Now, the EV revolution is unfolding on the waterways, but the lessons of the crowded roadways have been learned. This time, it's not about cash burn. It's smarter, if you know where to look.

The recreational boat market is worth nearly $19 billion today, and it's projected to reach nearly $26 billion by 2028—in just four-and-a-half years. That's an astounding growth rate, and it's all because of a push to go electric, including the adoption of emissions-free transportation and government policies that are hyper-advantageous to this segment.

The smart and first-mover advantage goes to Vision Marine Technologies (VMAR), with its proprietary E-Motion powertrain outboard motor that can turn any speedboat into the fastest electric version in its class on the market.

The cash-burn is not there because VMAR is selling directly to OEMs (original equipment manufacturers). It's not trying to build boats. It's making smart partnerships with battery makers and engineers and tapping into a boat-building market that has to do only one thing to make this viral: Fit an award-winning electric motor on the back, instead of a noisy, polluting and expensively maintained gasoline-powered outboard.

The Electric Boat Motor That Changes Everything

In partnership with VMAR, veteran boat maker Four Winns unveiled the new H2e Bowrider speed boat at the Paris Boat Show in December, and then made its official debut in February in Miami, with deliveries to start this summer.

The speedboat showcases VMAR's E-Motion 180 HP electric outboard motor with proprietary powertrain technology. That motor makes the H2e Bowrider the first all-electric series production bowrider on the market. And VMAR's E-Motion is the first fully electric, production-ready, high-performance 180 HP outboard motor on the market, as well.

The powertrain can provide a consistent 180 HP of pure electric power, with cutting-edge high voltage power when you need it most, and a completely scalable power bank. The proprietary technology is end-to-end: It includes the batteries, the engine, and the software, making it the only turn-key solution for boat manufacturers in its class.

The E-Motion outboard motor can fully charge overnight with no additional infrastructure and boasts the highest horsepower engine in its class. And from a price perspective, it out-competes everyone else, which should help it to capture new market share.

This month, Vision Marine (VMAR) is busy equipping a pontoon with electric propulsion and solar panels for the longest known electric boat run in America (and possibly in the world). VMAR's Zenith pontoon with set off in Virginia on a 1,050-nautical-mile journey to Miami, Florida, to showcase the capabilities of sustainable electric power.

Last September, right out of the gate, VMAR received an initial purchase order from the North America's Limestone Boat Company for $2 million worth (25 units) of E-Motion 180E outboard motors and powertrain systems. Limestone is now moving into scheduled production, with delivery target to dealers set to begin in 2024. Vision Marine is expecting its first revenues from powertrain this year.

The $18 Billon Global Boat Rental Market, Ripe for Electrification

The global boat rental market (across all boat types) was valued at $18.2 billion in 2021, and is projected to reach $31.2 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031. It's a huge market that is about to go electric. And it's not just about the environment … Electric boats are considered a better experience all around, from the noise-less enjoyment to the ease of maintenance and lower operating costs in the longer-term.

VMAR's flagship Newport Beach business managed to serve 300,000 clients in the first three years, annualizing $4 million in revenues with a 35% profit margin. In March, the company opened its second electric boat rental operation in Portside Ventura Harbor, California. Later this year, VMAR will roll out a third fully owned electric boat rental location and launch their franchise model. Next year is also out scaling up with speed.

A Brilliant Outlook for Marine Batteries

EV battery maker stocks are soaring, unlike their chaotic car manufacturing counterparts. Just this week, Chinese battery maker CATL reported earnings showing a 63% spike in profits and excellent guidance.

The same positive fate looks set for the marine battery market, where Vision Marine (VMAR) boasts proprietary technology that it has quietly been developing for a decade, with certified battery cells and custom designed marine-grade battery packs. It also has a partnership deal with Octillion, which has a production capacity of up to 5,000 batteries per day.

The EV Boom Is Well Under Way

Stellantis N.V. (NYSE: STLA) is an automotive conglomerate that was formed in 2021 by the merger of Fiat Chrysler Automobiles and PSA Group. This multinational corporation, which operates 14 different brands, including Jeep, Peugeot, and Maserati, is committed to the development of electric vehicles and has announced that it aims to invest over €30 billion through 2025 in electrification and software development. The company has set ambitious goals, planning to achieve sales of low-emission vehicles of 70% in Europe and 40% in the US by 2030.

Stellantis's strategy revolves around four electric vehicle platforms designed to cover all market segments, from small city cars to performance vehicles. By leveraging the strengths of its diverse brand portfolio and targeting investment in EV technology, Stellantis aims to capture a significant share of the expanding EV market. As an investor, it's worth watching Stellantis' progress in EV adoption and its broader push towards electrification.

Li Auto Inc. (NASDAQ: LI) is a pioneer in the Chinese electric vehicle market. The company's Li 9 SUV, a plug-in hybrid that can run on electricity and gasoline, has resonated with consumers who have concerns about range anxiety. The vehicle's success has allowed Li Auto to compete with other Chinese EV startups, including Nio and XPeng.

The company's focus on Extended-Range Electric Vehicles (EREVs) differentiates it from competitors who are focused on pure electric models. This allows it to cater to a unique customer segment in the Chinese auto market. Li Auto's sales growth has been impressive and shows that its hybrid approach to EVs is gaining traction.

Nio Inc (NYSE: NIO) has emerged as a prominent player in the EV sector. The Chinese-based automaker has carved a niche for itself in the premium electric vehicle market, with a strong lineup of SUVs and the ET7 luxury sedan. The company's innovative "Battery as a Service" model and battery swap technology have helped to distinguish Nio from its competitors.

Nio's business model is about more than just selling cars. It's focused on providing a lifestyle brand to its users, including Nio Houses that serve as showrooms, lounges, and gathering places for Nio users. The company's focus on user experience and community sets it apart in a crowded EV market and provides a unique value proposition for customers.

BlueBird (NYSE: BLBD) is a leading designer and manufacturer of school buses. The company's portfolio includes both conventional combustion engine buses and a growing lineup of electric models. The company has a substantial share of the North American school bus market and is making significant strides in the adoption of electric buses.

BlueBird's emphasis on producing zero-emission vehicles is a significant part of its growth strategy. The company's electric buses, with their lower total cost of ownership, are appealing to school districts looking to cut operational costs and reduce their environmental impact.

General Motors Company (NYSE: GM) is a staple in the American automotive industry. They've made significant commitments towards an all-electric future, announcing a $27 billion investment plan in electric and autonomous vehicles through 2025, aiming to launch 30 electric models globally. GM's Ultium battery technology is central to these ambitions, promising high energy capacity and versatile applications across different vehicle designs.

GM's commitment to electric and autonomous vehicles signals a significant shift for the traditional automaker, laying the groundwork for a sustainable future in the automotive industry. The company's plans don't just involve passenger vehicles but extend to commercial vehicles and even electric air taxis, demonstrating an encompassing strategy in electric mobility.

Investors should monitor GM's ambitious strategies to transform its portfolio and seize a significant portion of the booming EV market. GM's past performance and experience in the industry provide a strong base for this transition, making it a notable contender in the EV race.

By. Josh Owens

IMPORTANT NOTICE AND DISCLAIMER

This communication is a paid advertisement. Oilprice.com and its owners, managers, employees, and assigns (collectively "the Publisher") is occasionally paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Vision Marine Technologies Inc (VMAR) to conduct investor awareness advertising and marketing. Vision Marine paid the owner of Oilprice.com an out-of-the-money Common Share Purchase Warrant entitling the owner of Oilprice to purchase 250,000 shares of common stock between August 21, 2023 and February 21, 2026 at a price of USD $4.21 per share. This compensation should be viewed as a major conflict with our ability to be unbiased.

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in such articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company's SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on an interview conducted with the company's CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.

SHARE OWNERSHIP. The owner of Oilprice.com owns shares and/or stock options of the featured company and therefore has an additional incentive to see the featured companies' stock perform well. The owner of Oilprice.com has no present intention to sell any of the issuer's securities in the near future but does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuer in the market. The owner of Oilprice.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies' actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies impacting the company's business, the size and growth of the market for the companies' products and services, the companies' ability to fund its capital requirements in the near term and long term, pricing pressures, etc.

INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

TERMS OF USE. By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http:// Oilprice.com/terms-and-conditions If you do not agree to the Terms of Use http:// Oilprice.com/terms-and-conditions, please contact Oilprice.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY. Oilprice.com is the Publisher's trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.

DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing 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. FNM was not compensated by any public company mentioned herein to disseminate this press release.

FNM 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 FNM undertakes no obligation to update such statements.

Contact Information:
Media Contact e-mail: editor@financialnewsmedia.com / U.S. Phone: +1(954)345-0611

SOURCE Oilprice.com