After a bit of a hiatus we’re finally back, and with a breakdown of the hottest SPAC on the block, the Turquoise Acquisition Corp (ticker symbol: SHLL, which is subject to change as the merger becomes official) and their acquisition of the Hyliion, a company that’s set to change the landscape of the trucking business.
SHLL is in?
By now, I’m sure you’ve heard of the electric car brands such as Tesla and Nikola, and have witnessed their epic rise within the stock market. So what’s all the deal with Hyliion? Well for starters when taking a look at the investor presentation they filed with the SEC, we can see that they’re the only company that is set on producing CNG electric and hybrid electric configurations of class 8 vehicles. Essentially, they're in the business of retrofitting older pickup trucks with their batteries which will reduce costs (essentially pay for itself within a few years use) and emissions.
Now unlike many other popular green companies right now, Hyliion's focus is actually moreso for the shipping industry than it is for the average retail consumer, as their products are meant for the large haul pickup trucks that you see towering above everyone on the freeways.
The Hyliion advantage
With the rising belief of the goodness of alternative fuel along with increasing demand for green vehicles and countries starting to mandate green initiatives, it would be a great time for a company such as Hyliion to step in and offer a green product that DOESN’T have to directly compete with Tesla (unlike Nikola). Furthermore, Hyliion is addressing a $800 billion market with target consumers being the likes of huge shipping companies, such as Ups, Fedex, and even retailers like Walmart.
Only problem is: there hasn’t been true sales. Sure, you could point to the increasing demand in alternative fuel solutions and the fact that Hyliion is hitting a niche market, but that isn’t going to stop other players from entering the game. With volume production expected in 2022, that gives other companies some sort of timeframe to come up with a competing product. Albeit Hyliion would be one of the first, being the first inventor doesn’t guarantee success for long (just look at how Tesla has overtaken the likes of GM and Ford). Along with any other company that’s still really in the development stages of their product, anything that goes wrong could set back production by months depending on severity. Unlike a product that’s already been tested through the market of supply and demand and has shown returns, we have no clue whether Hyliion and their replacement battery will truly live up to the potential they currently have.
There’s a fine line between speculating and investing. If you’re buying Hyliion because you believe in their idea and support their fundamentals and business trajectory, great. However, “investing” just because a company is in its early stages of growth doesn’t always result in profits, so be intelligent and invest wisely.
Other than some preorders, Hyliion doesn't have real sales revenue, so although there could be good demand coming from the niche that the company is targeting, it doesn't mean that there will necessarily be sustainable revenue growth as nothing has really been proven yet.