October 18th, 2023 | 06:30 CEST
Nikola, Klimat X and BYD make significant steps forward
The current stock market year has so far been one to forget for companies in the Greentech industry. Whether hydrogen, wind or solar energy, the still mostly loss-making hopefuls have not yet been able to deliver on their lofty goals for a climate-neutral world. However, the potential in the coming decades is enormous. According to experts, the trade in CO2 certificates alone is expected to increase eightfold by 2030.
time to read: 4 minutes
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Author:
Stefan Feulner
ISIN:
NIKOLA CORP. | US6541101050 , KLIMAT X DEVELOPMENTS INC | CA49863L1067 , BYD CO. LTD H YC 1 | CNE100000296
Table of contents:
"[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Nikola - Is this the turnaround?
The developer of hydrogen fuel cell trucks has experienced a real roller coaster ride on the stock market in recent years. Initially launched as a competitor to Tesla, the stock price soared to highs of USD 94.00 shortly after its IPO in February 2020, only to plummet to penny stock levels due to allegations of fraud against founder and ex-CEO Trevor Milton and multiple postponements. During the second quarter, there was even a threat of delisting from Nasdaq.
However, since hitting a low of USD 0.52 in June, Nikola's share price has recovered, albeit with continued volatility. After temporarily falling below the USD 1 mark, it is currently trading at USD 1.23, just below the downtrend established since early August. A break of resistance would generate a near-term price target to the September high of USD 1.68. With further positive news regarding commercialization, it would also not be a surprise if Nikola shares retest their high for the year at USD 3.71. On the downside, the uptrend formed since June at USD 0.96 serves as support.
Already at the end of last month, Nikola unveiled its commercial hydrogen fuel cell truck, which offers a range of around 800 km on a full tank, taking just 20 min to refuel. According to the US company, this is unique in Class 8. They have already received 223 pre-orders for their hydrogen fuel cell electric trucks of the HYLA brand from the Company itself and its distribution partners.
The zero-emission transportation, power and infrastructure solutions provider plans to release its third-quarter financial results on November 2, 2023.
Klimat X - Leading in the growth market
That the stock of one of the world's leading providers of high-value carbon credits derived exclusively from afforestation and reforestation projects has delivered a share price performance of over 130% since April is all too logical, given the market environment and exponential growth. Experts from Shell and the Boston Consulting Group predict that the market for CO2 certificates will grow 5 to 8 times by 2030.
The Canadians want to profit from this by generating certificates through the management of forests and mangroves. According to the CEO of Klimat X, James Tansey, there are two ways to achieve this. In addition to reforestation of forests and mangroves, these are also protected from deforestation. Projects of this kind already exist in Sierra Leone, Ghana, Suriname and Mexico.
In addition to the main business segment, Klimat X, which has a stock market value of CAD 15.72 million, maintains combined agricultural projects. Through the coconut water business, the Canadians are generating additional income streams in Guyana, among other places, creating new jobs regionally and additionally being able to accelerate reforestation.
Due to the uniqueness of this project, Klimat X received a commission from the local government in climate-neutral Suriname to start a similar project. At the end of September, the groundbreaking ceremony took place there under the leadership of the President of Suriname. According to James Tansey, the country has considerable potential to generate carbon credits from mangrove restoration and protection. "These types of projects can generate 500 to 1,000 t/ha and have the potential for tens of thousands of hectares."
BYD continues to work on supply chain
It is well known that the Chinese market leader leaves nothing to chance when it comes to the value chain. The Shenzhen-based company has been working for years on building its own supply chain in order to minimize dependence on suppliers. In addition to developing its own chips for autonomous driving, BYD is investing directly in companies that produce critical raw materials for electromobility. Last year, BYD already took a stake in Shenzhen Chengxin Lithium Group with an investment of EUR 425 million. In return, the electric car manufacturer receives secured lithium supplies.
In addition, the "Build Your Dream" company secured six African lithium mines, which, according to experts, contain more than 25 million tons of ore with a lithium oxide content of 2.5%, making it theoretically possible to mine up to 1 million tons of lithium carbonate. This alone would cover the lithium demand for the next decade.
BYD is considering purchasing lithium deposits in Brazil to secure the supply of raw materials and expand its electric car production outside of Asia. BYD's new electric car factory in Brazil is expected to include a lithium and iron phosphate processing plant for the international market. The Warren Buffett-backed company is investing around USD 590 million in its first electric car plant ex-Asia, including a research and development center. According to the Company, the goal is for all automobiles sold in Brazil to be built there as well.
At Nikola, the start of sales of its commercial hydrogen fuel cell truck could be poised for a turnaround. BYD continues to make itself independent through investments in raw material deposits. Klimat X is one of the leading suppliers of high-quality carbon credits, which could benefit significantly from the exploding market in the next few years.
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