18. November 2020 | 10:40 CET
NIO, Tesla, dynaCERT - Mobilizing the future!
The good news for automotive suppliers is that electric vehicles still only make up a small percentage of the car market - at least for now. The bad news is that the increasing spread of electric cars is a significant challenge for automotive suppliers. Since these cars have far fewer parts than those with conventional combustion engines, manufacturers of exhaust and fuel systems as well as traditional transmissions are facing significant disruptions as e-mobility takes unexpected steps forward. The crux of the matter for electricians is still the availability of charging stations and the limited mobility radius. But this will soon change rapidly once the Corona aid pots are flowing into the green infrastructure.
Nevertheless, the e-vehicle is being fueled by government emission standards and incentives, especially in the USA, England, France, Germany and China. But the battery-powered vehicles will not pose a significant threat to the combustion engines until operating costs are about the same. In especially more impoverished areas of the planet and inaccessible zones, there is no alternative to the internal combustion engine; this is completely ignored in the public discussion. While the cost of e-cars continues to fall as technology improves, they are still far from being competitive. Nevertheless, if you look at the signs of the times, car companies have already invested billions in electro-related technology, so the course for the future is set.
time to read:
ISIN: CA26780A1084 , US62914V1061 , US88160R1014
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
NIO - The wonder of Shanghai
Sales of the US-listed Chinese electric car trio are rising, with NIO on track to sell 100,000 units next year, followed by Li Auto and XPeng with 50,000 units each expected, industry analysts say. In an online report by China Merchants Securities, the market response to the ES6 and EC6, Li ONE and XPeng P7 models have been consistently positive. Sales figures released for October also show that monthly sales of NIO reached 5,055 units, while Li Auto and XPeng exceeded 3,000 units each.
The driver is probably the stock market listing in the form of ADRs in the US. Now that NIO, XPeng and Li Auto are all quoted in - one could almost believe that this is a condition - the three electricity powerhouses are recording a rapid increase in sales after considerable start-up difficulties. China's sales in the new technologies seem to accelerate again in 2020, and they are managing to shake off the effects of Covid-19. From 2018 to 2019, China's sales of electric vehicles remained at around 1.05 million units. It was in July this year when sales figures started to skyrocket, and it continues to accelerate.
Domestic sales in October were 16.0 million units, up 105% from last year, which is encouraging. It is questionable whether Tesla sales in the US can quickly catch up with Tesla sales because the American is acting on the principle of "Buy America First" - just like Trump. NIO has a market value of USD 61 billion at a price of USD 45, which is an increase of +1.900% since 01.04.2020. Where will this still end?
Tesla - automotive value on the wrong track
In recent years, Tesla has consistently stated that its energy division is expected to account for more than 50% of the Company's revenue at some point. As the world shifts from fossil fuels to renewable energy, the opportunities are enormous and are practically ever-increasing. Yet analysts still keep throwing the value back into the evaluation box to the car manufacturers - far from it!
Since "Battery Day" it should be clear - Tesla is also an energy Company and is developing into a technology forge in the Power & Mobility sector. But it's not just the simple storage of energy in batteries that opens up enormous sales opportunities for the Company. Tesla has entered the power generation market, and in this new world, the Company is even taking steps towards becoming a decentralized power supply Company that serves the entire renewable energy spectrum. In the future, this will be another very significant factor in revenue growth as the Company continues to expand its vertical integration advantages.
The current financial results show the jump in growth. The development of battery production forms the basis for this. New value-added software offerings offer a further competitive advantage over pure hardware producers. Extensive orders have been received, which will be delivered in the coming quarters, opening up a path for Tesla to further breakneck sales growth, not to mention its automotive division, provided that it can scale its supply to meet the demand than existing. Examples such as Berlin-Brandenburg's Gigafactory are a building block of this strategy - German technology companies have already heard the shrill bells ringing.
With yesterday's 12% price jump due to the S&P500 admission, Tesla's market capitalization is a bombastic USD 422 billion. By the way, all other automotive companies collectively bring USD 325 billion to the scales. So the proof is evident: Tesla is not an automotive Company; it is the future - that's what the stock market thinks.
dynaCERT - Burning, yes, but please clean!
dynaCERT produces and distributes technologies to reduce carbon emissions when used in combustion engines. Using a unique electrolysis process, the combustion chamber of diesel vehicles is supplied with additional hydrogen, and fuel efficiency is improved at higher power output. dynaCERT Inc. is already established as a leader in the cleantech industry and continues to research.
For some time dynaCERT has also been offering its HydraLytica™ technology, which makes fuel savings measurable in real-time for users to respond to the growing needs of the industry. The competitive pressure in the logistics industry is so great that even a marginal cost reduction in the single-digit range leads to enormous competitive advantages because you can sell your freight services cheaper and also "greener" compared to your competitors. Logistics companies use the software for truck management, and in this way, dynaCERT is expanding faster and faster together with the FreightTech industry. In the next few years, the estimated market growth is expected to be around 7-10% per annum. For dynaCERT as a technology partner, it is likely to progress even faster because the need for modernization is spreading throughout the entire industry.
Another charm of the HydraGEN™ technology is the possibility to develop innovative proprietary FreightTech management solutions through a monthly subscription program. A significant advantage is that existing commercial vehicle fleets of buses and trucks, which are expensive to purchase, can be retrofitted at manageable costs and can continue to be operated through new licensing, even with ever-increasing environmental regulations.
The share price has been hovering around the CAD 0.50 mark for a few days now. It regularly trades over 1 million units per day - the current capitalization of only CAD 188 million does not reflect the potential of the technology when the "green wave" reaches the last regional parliament.