15 Nov 5 Companies building the Future of Transportation
The International Energy Agency predicts that the Electronic Vehicles which stand at 3 million today will grow to 125 million by 2030. The Global Electric Vehicle market is all set to compete with the internal combustion engine (ICE) vehicles in the next five year, accounting for one out of every five cars sold by 2030, according to Seth Goldstein, an analyst and chair of Morningstar’s electric vehicle committee. The growth of this industry is a result of the initiatives by governments around the world, in the form of tax rebates, grants, and subsidies for adoption of renewable and more environment friendly options for transportation. Unlike conventional vehicle which can only replenish their fuel at specific public locations, Electric vehicles can be charged at home or commercial charging stations.
However, the limitation of sufficient charging capacity to cover long distances discourages the use of these vehicles. There is an increased focus on research and development activities, especially in the passenger car sector, to improve infrastructure and supply equipment and establish EV chargers at easily accessible public places, to allow long distance travel as well. Range anxiety which acts as the biggest impediment for the market at present, will soon be a thing of the past, with Companies racing to develop connectivity modules.
The demand for electric vehicles will also bolster the demand for ancillary industries such as engine components, electronics for propulsion systems, battery optimization and torque transfer devices. In fact the demand for lithium, which is a crucial component of energy storage in transportation batteries, is likely to quadruple over the next decade according to Seth Goldstein.
A report by McKinsey estimates that by 2025, there will be more than 350 EV models introduced into the market, with ranges of 200 miles. However a lack of charging infrastructure could hamper the growth in the market. The report also highlights the fact that besides price and driving range, lack of access to charging stations is the third most serious barrier to EV. However there have been a gradual decline in prices and improvement in driving range and companies are making a concerted effort to provide the requisite charging infrastructure. Furthermore the total energy demand for electric vehicles in China, United States and European Union alone will reach 280 billion kilowatt-hours by 2030.
There has been an increasing interest in EV’s owing to environmental concerns, which has prompted leading automobile makers such as BMW, Daimler, Ford, and Volkswagen to announce an investment plan for deployment of 400 charging sites across Europe, in addition to investing approximately $90 billion in electric vehicles, according to a report by Reuters.
Volkswagen is planning to produce 1 million electric vehicles by 2025, with over 70 new all electric models, and invest nearly $50 billion in electrification through 2023. Not to be left behind Companies such as Ford have committed to investing $11 billion by 2023, while General Motors plans to roll out 20 fully electric models by 2023, a testimony to the potential of this market.
We take a look at some Companies that are building the future of transportation through constant research, development and innovation.
Kandi Technologies Group (NASDAQ: KNDI)
Market Cap: $243.50M; Current Share Price: 4.61 USD
Data by YCharts
Kandi is one of China’s Top 500 mechanical companies and a member of China Renewable Energy Auto Association. Besides electric vehicles (EV’s) the Company also manufactures all-terrain vehicles (ATVs), battery packs, automobile motors, controllers for electric vehicles, and air-conditioning systems. However it has now shifted its focus to electric vehicles and intends to maintain its leadership position in the pure EV market. Kandi has various subsidiaries such as Jinhua Kandi New Energy Vehicle Co., Ltd, Yongkang Scrou Electric Co., Ltd, Kandi Electric Vehicles (Hainan) Co. Ltd, and a 50% ownership interest in Kandi Electric Vehicles Group Co., Ltd according to the Company.
Kandi formed a joint venture with Geely Group, one of China’s leading automaker in 2013, to develop and commercialize pure electric vehicle products. Kandi holds 22% in the Joint venture, while Geely and its affiliates own 78 percent of the Company, which has now emerged as one of the pioneers at the forefront of the EV revolution in China.
The Companies numerous product offerings include Electric Car, Tendency, Tricycles and Farmer Cars. The Company has signed a supply contract with SC Autosports for its initial 2000 model K23 at the EV model K23 Launch Conference in Garland, Texas. The Companies signed the agreement on October 1, 2019 for a total contract value of about $32 million. The first 200 vehicles are due for delivery by the end of 2019. Its foray into the U.S market was marked by the Company receiving eligibility for up to $7,500.00 in tax credits from the Internal Revenue Service, which the Company is passing on to its buyers.
The Company successfully executed a purchase framework agreement with DGL Group Inc, Wal-Mart’s largest supplier of electric self-balancing scooters under intelligent transportation product category. The agreement dated September 22, 2019, was executed through its wholly-owned subsidiary Zhejiang Kandi Vehicles Co., Ltd, starting with the delivery of the initial batch of 1,232 electric scooters and 37,755 electric self-balancing scooters on October 11, 2019 as per a Company statement.
Electrameccanica Vehicles Corp (NASDAQ: SOLO)
Market Cap: $73.92M; Current Share Price: 2.00 USD
Data by YCharts
Electrameccanica is a designer and manufacturer of electric vehicles based out of Canada. The Company’s flagship product is SOLO, a single-seat electric vehicle that aims to disrupt the commuting, delivery and shared mobility space and is targeting deliveries to customers in 2020. The SOLO is being positioned as a unique driving experience that is trendy, fun, affordable & environmentally friendly.
The Company has entered into a strategic contract manufacturing partnership with Zongshen Industrial Group, China’s largest motorcycle manufacturer and an early investor in the Company. According to the Company, 64 Gen-1 SOLO’s have been hand-built by Electra Meccanica’s Vancouver Facility and another 50 produced by Zongshen as part of its pilot production and are already on the roads in US, China and Canada as part of validation testing.
The Company acquired InterMeccanica in 2017, which has over 60 years of experience in vehicle engineering and building specialty vehicles, and launched the eRoadster, an electric vehicle that replicates Intermeccanica’s Roadster. The SOLO will first be rolled out in the Los Angeles area, followed by expansion into other west coast markets. The future generations of the vehicle will incorporate increased functionalities and will be the Companies primary focus. In addition, the Company is also planning to launch a concept vehicle named Tofino, a stripped down simplified two-passenger EV sportscar, and ramp up the production of the eRoadster, both of which would require a new manufacturing partner.
The SOLO has a 100-mile range & 80-mph speed making it an ideal commute vehicle, the vehicle is economically priced, has lower maintenance and operating costs and is environmentally friendly. The Vehicle caters to the needs of daily commuters, packages and food delivery and lends itself to shared mobility in form of hotels or shared rides.
Alternet Systems, (OTCPINK: ALYI)
Market Cap: $792,86; Current Share Price: 0.0063 USD
Data by YCharts
The Company’s ReVolt Electric Motorbike, produced using its portfolio of lithium battery technology, in partnership with a manufacturing company, is currently under construction. The motorcycle will be based on the 1930’s BMW R71 motorcycle with sidecar, used by the German Army in World War II, and will be powered by an electric motor utilizing an Alternet System designed lithium battery solution.
Alternet intends to complete evaluation and testing and have a limited production final product ready before December, besides exhibiting at various trade shows leading up to the holiday season. The product seeks to address the needs of electric motorbikes for the developing economies of the world, where motorcycles, scooters and mopeds are the primary mode of transportation.
In July 2017, Alternet acquired Lithium IP Holdings including the option to acquire ten U.S. Patented lithium battery technologies, which the Company intends to commercialize or enter into partnerships with reputed businesses and agencies and further extend its portfolio. The Company wants to leverage this technology by entering into areas such as Industrial, Military and Defence sectors and use its resilient lithium centric energy solutions for creation of stable, safe, long duration power in high impact operating systems.
Market Cap: $15.58B; Current Share Price: 4.87 USD
Data by YCharts
Byd is a pioneer in the electric vehicles market, and is the first Company to produce the plug-in hybrid electrified vehicles (PHEVs) on a mass scale. The Company’s mission is to create a complete, clean-energy ecosystem with minimal reliance on petroleum. Byd is a world leader in numerous sectors such as battery-electric automobiles, buses, medium- and heavy-duty trucks and forklifts, taxi fleet vehicle; the SkyRail monorail system; solar power generation and energy storage systems; and consumer electronics.
The Company claims to be the world’s largest electric vehicle manufacturer for three consequent years in consumer as well as industrial electric vehicles. It sold over 113,000 plug-in electric vehicles worldwide in 2018 and has more than 40,000 electric buses in operation around the world. The Company is also one of the largest rechargeable battery manufacturers in the world, and uses non-toxic Iron-Phosphate battery chemistry, to cater to numerous markets such as mobile phones, laptops, large-scale, grid-connected energy storage systems.
Warren Buffet’s Berkshire Hathway is the largest single shareholder and holds an 8 percent stake in the Company. The Company has recently signed an agreement with Japan’s Toyota Motor Corporation to set up a joint company for research and development in the field of battery electric vehicles (BEVs). The new Company will be established in China in 2020 and will be created by an equal investment by both the Companies.
Tango Commuter Cars
Tango Commuter cars, which aims to address traffic congestion, while offering safety and speed, also provides the lowest center of gravity of any car. The car is compact, but weighs over 3,326 lbs, 500 lbs more than a Toyota Corolla. The Car has the ability to reach from 0 to 60 mph in 3.2 seconds and can cover ¼ mile in 12.214 seconds, demonstrating that an Electric Vehicle customer need not compromise on safety or speed when choosing an electric car.
The cars boast of a four-point harness that replicates the ones used by passenger jet pilots, making it one of the safest cars to be built. In addition the car offers agility and is able to switch lanes or move over almost instantaneously, it can accelerate without facing issues with down shifting, or turbo lag and most importantly has the same weight distribution as a 911 Porsche which makes for excellent braking.
The car has passed successfully passed the Moose test conducted by Consumer Reports, which tested the car through their Emergency Lane Change Maneuver, and recorded the fastest speed through the test that also included motorcycles. The vehicle roll cage meets or exceeds the FIA race car regulations, the car is 8 and a half feet long, which makes it half the size of a regular car and runs on lithium batteries .
The Car currently costs $108,000 to the consumer, while its costs $420,000 to make for the manufacturer, owing to its premium price tag, only 21 of these have been manufactured so far, one of which is owned by George Clooney. The high cost is due to the use of highly specialized custom parts that includes a Momo steering wheel, a MoTeC dash (used in race cars) and a 4-point shoulder harness to name a few.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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