Hyliion will be one of the hottest SPAC mergers to IPO through SHLL Stock “Tortoise Acquisition” toward Q3 of 2020 and this is what you need to know about this electric truck maker!
SPAC stock SHLL to merge with Hyliion, which provides Class 8 trucks with hybrid natural gas and fully electric drive train, announced plans to merge with SPAC Tortoise Acquisition Corp. Once the transaction has closed expected Q3 2020, the ticker symbol will change from SHLL to HYLN.
SPAC Stock SHLL Agreement Key Points.
- Hyliion to go public at a $10 per share, and to have a market capitalization of $1.5 billion when it does.
- Hyliion though SPAC SHLL will hand over $560 million in cash to fully fund the commercialization and mass production of the company’s electric hybrid tractor trailers.
- Nothing else can be expected before the merger is finalized, probably toward the end of Q3 2020, so late September.
Key Factors For Hyliion’s Future Growth
- First to market for Tractor trailers, to be in production next year.
- Cheapest cost per truck over competition NKLA & TSLA
- The natural gas segment has a pre built infrastructure for refueling over Nikola’s hydrogen fueling that have to be built still.
- Gross profit expected to exceed $700 million by 2024
- Hyliion presuming future growth trades fro 1.8x 2024 EBITDA
If Hyliion can execute on its current business plans the company is arguably cheap for a long term to investor, but with the hype around the EV space it’s likely this will become over valued very quick after the merger!
Let’s take a deeper look at the CEO of Hyliion and see if he is the right person to execute on this plan.
Hyllion CEO Thomas Healy
SHLL Stock CEO Vince Cubbage Had This To Say about the acquiring of Hyliion.
“Over the past 15 months since our IPO, we have evaluated more than 200 companies looking for the ideal opportunity where our expertise and capital could be the catalyst required to unlock the full potential of a high growth business. We found that exceptional company with Hyliion a market disruptive business plan, trans formative products and remarkable founder and CEO. We are honored that they made us a part of their team and are looking forward to helping them deploy their sustainable, electrified trucking solutions to significantly reduce emissions and contribute to a cleaner energy future.”
How Hyliion Trucks Work
People tend have a hard time understanding how a natural gas truck is consider to be electrified if they still need these fuels to operate, but here’s what you need to know.
These transport trucks use a cheaper fuel like natural gas to generate power that gets stored to batteries. The batteries in turn power the electric motors with many cost benefits and fuel efficiencies including regenerative braking.
The reason companies are on track to use hybrid tractor trailers has to do with the efficiency problems related to battery weight and recharging times. This is why Tesla tractor trailers are not set to release for another year until they work out the battery in efficiencies. This gives new start ups time to steal early market share.
Should I Buy Into Hyliion Before The Acquisition With SHLL
This SPAC stock has garnished a lot of attention for being so well thought out compared to companies like Nikola. Being first to market in the tractor trailer space, this gives them a better hedge then Nikola & Tesla if they can pull off there business plan in which long investors could see a healthy return.
The biggest risks with Hyliion is companies like Toyota who have a large infrastructure already in place, that may not be first to market but will be competing for the space in the none to distant future.
Traders may be buying up SHLL stock as well to ride the hype of the recent SPAC trend after witnessing the explosive growth of companies like Nikola. This could cause an over valuation to the company in the near term taking away some of the attractive long term growth prospects.
In conclusion is SHLL stock a buy? If you are interested in the EV electric vehicle space and don’t mind adding a little risk to your portfolio, for the potential of huge near term gains this may a good short term hold. We consider a short term hold 6-12 months as it’s likely on the merger in Q3 of 2020 traders will over inflate the stock price allowing early adopters to take some profit.