Hey everyone meet kevin here in this video we're going to talk an eevee update, electric vehicle update, we're going to talk tesla neo but, most importantly, we're going to be talking in this video about a potential newer company that we haven't talked much about on this channel. It is a spec that merged earlier this year, it's only got about a two billion dollar valuation and folks there could be some potential upside in this particular company because it's been flying under the radar but they're doing some pretty incredible things. So, let's get right into talking about this right after i mentioned that you should check out the programs on building your wealth link down below with a coupon code expiring. When my birthday comes up i'll, be 30 soon so check those programs out price will be going up on those programs on building your wealth.

Okay, look first update that we've got as the following electric vehicles: there's a fun fact here: killed 1.5 million barrels per day of oil demand in 2021.. Now, even though investing in oil has been phenomenal over the past a year because commodity prices, especially energy prices, are up 30 to 40 percent oil, natural gas and they've only recently started inflecting the downside. This has led stocks like exxon mobil, to do extremely well. Evs are taking a bite out of oil, demand 1.5 million barrels per day in 2021.

We're expecting that to substantially balloon over the next of four to five years: uh folks, tesla the neo, and then this uh smack we're gon na talk about tesla tesla won approval to build more test cars, and it's yet unfinished a german berlin gigafactory. Now they are still waiting for final permitting, but they can now test at manufacture as many as 2 000 electric vehicles at the factory. This is up from 250, previously they're not allowed to sell these test test cars, but it does allow them to get the factory to an operational state, to train their employees and to check for quality control on these vehicles that they're producing. Now it's worth noting that the max capacity for giga berlin could potentially exceed 1 million vehicles in the future.

But right now we're expected to go through phase one of 250 000 vehicles a year and then phase two of 500 000 vehicles per year. The plant will also have the uh the the capacity to produce a 500 million cells, totaling 50 gigawatt hours a year when it's a fully operational. This is pretty incredible, especially since, when we add this for tesla uh, even 500 000 here plus about 600 000 at giga, shanghai plus 500 at fremont and growing and the austin gigafactory, we should easily be at over 2 million deliveries for tesla within the next year. To 18 months at an annualized rate and we're up from there now regarding neo there's an interesting update regarding battery swapping chinese companies as companies throughout china are expecting to build over 8 000 battery swapping stations in 2022 and 26 000 by 2025..

Now remember: tesla used to try or used to have battery swapping as as a prototype in america. They never ended up going mainstream with battery swapping, because elon must believe that american consumers don't want to swap their batteries. They want to be responsible for their own battery. They don't want somebody else's battery and they'd rather just use a supercharger, because it's fast enough now supercharging your tesla instead could still take 40 to 50 minutes to fill up on average battery swapping can take as little as three minutes.

The problem is, you've got to build the stations, you've got to have more batteries that are charging and then more batteries on sort of in inventory, basically to be prepared for people to pick these batteries up, and so a lot of folks have had complaints about battery Swapping but i'll tell you if china is planning on building 26 000 battery swapping units by 2025. That tells us something now. Battery swapping is probably here to stay. Neo is expected to have 4 000 of these units or 15.3 percent of all of these units by 2025.

The biggest though uh is actually, this company called alton, which i don't believe is a public company, that's a-u-l-t-o-n and they are producing the vast majority of these chargers. Uh compared to all of the others, like a geely, also producing alton expected to produce over 8 000 or over 30 of these uh battery swapping stations not expecting to see these swapping stations in the united states, though, who knows that could change when and if neo? Finally, delivers vehicles in america right now, it seems like they're focusing on the european market, especially norway, which has an extremely high ev adoption rate right folks. Now, let's talk about this back, that has definitely had some massive pain on the charts. This is a stack that well 10 par value, ran all the way up to 31 in january of 2021.

It today sits at about 10, just recently in the last couple weeks, at a low of eight dollars and 26 cents, and the company we're talking about is a two billion dollar company and it is a company that is potentially slated to go to the moon, especially Following the passage of the bipartisan infrastructure plan and the implementation of five billion dollars in investments into folks, electric buses, proterra is the company. It was a merger between the arc-like, spac and proterra, and proterra is now a public company again trading for about ten dollars. Roughly its back par value lockups for the company are not expected to expire uh, at least the espaka lockups until the company trades over twenty dollars. So some insulation, here from lockups and proterra estimates that their current addressable market is over 260 billion dollars, is selling electric buses, especially since states like california are required to con convert to completely zero emission vehicles by 2040.

So electric bus is likely uh to be the uh, the vehicle of choice for uh for city buses and school buses. But this also includes currently cities like new york, city chicago and seattle, proterra conducts about 80 percent of their revenue by selling city buses, and the other 20 percent is made up of chargers and school buses. At this point, though, this dynamic could change. They only delivered five vehicles in quarter three of 2021, we'll see what q4 numbers look like when earnings come out, but they are expecting 407 million in revenue in two 2022 means they're really only selling for about five to six times 2022 sales relatively low, especially compared To when the spec merger was conducted and some of the euphoria we've seen on the chart previously they're expecting 784 million or nearly a doubling from 2022 in 2023, that would put you at a price to sales ratio of about three out to 2023.

No current path to profitability, and that's because the company is spending money substantially trying to expand their business operations. They do have over 600 million dollars available in cash, currently burning about 50 to 60 million dollars per quarter, uh that gives them a nice run rate of about uh, potentially up to a couple years. Uh in in cash, the company has two battery production facilities as well right now so they're taking a very tesla-esque approach. Their current annual capacity is about a one gigawatt per hour or one gigawatt-hour annual capacity they're looking to build their third multi-gigawatt facility.

So this will be their third battery production facility introducing an additional multi-gigawatts of power uh. This uh third facility is expected to cost 76 million dollars to get up off of the ground, so some cash headwinds could be coming for the company as they continue to build out factories uh by comparison, tesla does produce about 38 to 39 gigawatt hours, they're working On getting over to 50. pradera proterra excuse me also provides chargers for commercial vehicle operators and really their goal is to create a mini ev ecosystem, and this is pretty much the goal of any electric vehicle company. When you look at a rivien they're trying to get their customers to use their chargers, they're charging products to buy their charging services at charging and destination chargers throughout this is this is a very common additional revenue model uh for evs, so nothing super proprietary here, their Chargers charge at about 250 kilowatts uh per uh per hour, that's about the same speed as the fastest tesla superchargers.

They uh their their lithium ion. Batteries are expected to be as large as 6 megawatt hours, which is about 60 times the size of a battery that you would see in a regular vehicle which does make sense, given the size of the vehicles that these are going in. The uh average weight of a city bus by the way, just just for comparison, is somewhere between 25 000 and 40 000 pounds. That's about 10x, the weight of uh of a regular vehicle and makes sense.

You can carry about 10x. The amount of people uh but substantially larger battery sizes to really keep those ranges going and get these vehicles moving throughout the day now, in october, they also announced that they were considering using electric school buses to turn them into electricity generators during the day to basically Provide power to the grid when school buses aren't being used and potentially during midday electricity usage. So this is kind of an interesting opportunity for potentially school districts to invest in these electric school buses and then be able to park them in such a way that they're, actually feeding power back to the grid and offsetting some of the energy cost of. Let's say air conditioning uh in schools: here's just an example of a proterra branded school bus.

You've got the proterra charging systems here, bi-directional power capabilities, uh so again, being able to support the grid. Here are just some examples of the proterra electric buses and really interesting charging system where essentially, the bus can drive under a charger and almost like uh like an electric monorail in a city or maybe not even a monorail. More more just like a an electric street car and say san francisco, where you've got these these overhead lines that are charging or powering uh the streetcars. Here's an example where proterra has uh charging stations that you could just drive under and then the vehicle charges uh by making contact with the charging units here so uh overall proterra is, is something some folks are beginning to speculate.

Uh might be hit with a rotation here, though you got to remember. This is a small cap when you're under five bill. You're, relatively small under two bill, is technically the definition of small cap, though that continues to shift and a round two bill that makes them a prime target for hedging for short sellers right now. The company has a current short interest of six point: three, seven percent - that is up from the low four percent and just four weeks ago, so you've definitely seen an increase in the shorts, and this could be one of the things that is depressing the stock.

So you do have some potential capital calls coming up as they expand their battery facilities and they expand their production. You have a risk they're, not producing they're, not a profitable company. So it's very easy for algorithms to sell this company off, but it's at such a low level that folks are wondering two billion dollars for an electric vehicle manufacturer that could benefit quite well off. The bipartisan infrastructure package seems quite fair and quite interesting.

You've got the vertical group projecting that this is a 40 per share company in 2025. That would be a 4x by 2025, with a fair value. They believe of 25 today, which is about 20 times 2025 ebitda uh, and that uh that compares to the russell 2000, which trades for about 17 at times 2021 ebitda. Additionally, its lockups ended 120 days and 180 days after the merger that occurred on june 12th.

So we shouldn't have a lockup headwinds, which potentially means the price could be lower because of lockups that have already expired, which could potentially again create another opportunity to get in on proterra. So there you have an ev update if you found this video helpful. Consider sharing this and, of course, check out the programs on building your wealth link down below thanks so much bye.