We’re about to see a lot more electric vehicles (EVs) on the road over the next decade…
Mercedes owner Daimler (OTCMKTS: DMLRY) and Ford Motor Co. (NYSE: F) have both partnered with some of the biggest technology companies around to build out a fleet of EVs by 2023.
In January, General Motors (NYSE: GM) said it would phase out its gas and diesel vehicles. Between now and 2024, General Motors will accelerate the development of several EVs. By 2035, the automaker said it would stop making gas- and diesel-powered vehicles altogether.
But further adding fuel to the movement is the global effort to increase the use of renewables as well as the number of EVs on the road.
Governments all over the world are pushing for a transition to cleaner energy. Australia, Europe, and the U.S. are mapping out plans to reach net-zero emissions over the next thirty years.
This means fossil fuels will inevitably be replaced by renewables – signaling that EVs will ultimately take over as the dominant vehicle on the road.
However, for governments to successfully tackle these colossal efforts, battery technology, commercial fleets, and broader infrastructure will be needed.
That’s where our EV company comes into play. It not only develops a variety of parts for EVs, but also manufactures EV buses, charging solutions, and software services for the market…
But with so many big players already established in the space, many aren’t offering the potential upside that could fundamentally change investors’ lives.
That’s exactly why we’ve turned to 2021’s hot IPO market.
Unlike publicly traded firms that may offer small, consistent, and incremental increases in share value, IPOs have the potential to drive a company’s valuation significantly higher in the days and months after going public.
This IPO Has the Potential to Play a Major Role In The EV Revolution
Proterra is an electric vehicle company that was founded in 2004.
The company’s products fall under three main pillars: Proterra Powered, Proterra Transit, and Proterra Energy.
Through Proterra Powered, the company designs and manufactures battery systems for the EV market. The firm also creates a variety of EV parts, including everything from drive-trains to specific controls for their vehicles.
With Proterra Transit, the company manufactures a series of EVs for public transit and commercial use. This segment primarily consists of buses.
Meanwhile, Proterra Energy is focused on the infrastructure that makes EVs possible. The division builds charging solutions and software services to optimize energy usage and to make sure the broader grid supports EVs out on the road.
And while these pillars alone make Proterra an interesting pick, the fact that it has several strategic partnerships with big names across a variety of industries further supports its potential to play a key role in broader EV rollouts.
Currently, Proterra is partnered with Daimler Trucks North America’s Thomas Built Buses to manufacture EV buses. These products include school buses and transit buses. Last year, the firm sold over 1,000 buses.
Proterra has 133 customers across the U.S. as well. These customers include government transit agencies, universities, and airports. Some of the biggest include Los Angeles County’s Foothill Transit as well as Harvard University.
The company also works with LG Chem and Panasonic as a reserve supplier that provides battery cells.
In 2020, the company reported revenue of $193 million. The company said its current backlog and orders were $750 million. The EV maker added that its earnings before interest, taxes, depreciation, and amortization (EBITDA) were about $66 million.
The firm’s gross margin was 4%. And its free cash flow was around $95 million.
Once Proterra goes public within the next few months, these numbers could surge within a few years…
The firm forecast that its revenue could rise to $2.6 billion at a compound annual growth rate (CAGR) of 68%. Its EBITDA is projected to increase to $539 million.
Proterra’s gross margin is anticipated to reach 25%. And the company’s free cash flow is expected to come in at around $390 million.
These factors suggest the company not only has the scale to develop EV products en masse, but also indicates that it has solid financials, a strong set of diversified offerings, partnerships, and experience in the space.
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