I find the vast majority of EV stocks to be egregiously overvalued. Microvast is the exception and has a “second chance” potential for those who missed the boat previously with others. I just quickly put the below information for those who may be interested
About:
Microvast is a battery manufacturer. Completly vertically integrated they produce anodes, cathodes, separators, electrolytes cells, modules, BMS, and complete battery systems and stationary storage systems. They have a factory in China, R&D facility in Florida, Design site in Colorado, Manufacturing facility in Mexico, and it's biggest project, a cell plant in Tennessee. There's a pending Kentucky factory pending funding/politics.
Technology:
Their technological moat is that the vertical integration created self proclaimed market leading cells. It's not a solid cell battery but ironically it exists and exceeds the performance promises of it's theoretical competitors. Cells are automotive grade at 275Wh/kg with cycle life span of 5,000 to 10,000 cycles. They have a proprietary electrolyte and kevlar separator they claim has never resulted in a single fire. While they don't have the mythical range numbers the cells are designed with commercial vehicles in mind, with the cells excepted to last well over 1 million miles. It's battery storage system specifications exceeds that of Tesla.
Financial:
At a $480M marketcap. They currently have a $500M backlog and If no delays to the Tennessee factory they are expecting 2024 revenue of $700M-$1B with IRA credit not included. Both cell factories booked to capacity. Profitability expected by 2025, growing eps Qtr after Qtr. Quarter of the average forward PE of it's peers.
Future:
The US and China factory are “future proof” only requiring utility upgrades to more than 3X capacity. New factories will be to sell their cell components to other manufacturers. They have a technological
Risks: The CEO being Chinese American and it's large factory in China has made it an easy target as Republicans look for the next Solyndra. It's still both undervalued than EV related Chinese companies on the Hong Kong exchange and it's Korean and Japanese counterparts. Republicans were successful in blocking a $200M grant against it, with zero factual basis. The vast majority of it's shareholders are western. The biggest irony is theb
If there's any interest I'll do a whole due diligence post with a discounted cash flow model but you can get a good overview of it all directly from them.
https://ir.microvast.com/static-files/84f12977-3c08-470d-ad48-8f76d28c850a
Disclaimer: I hold 500,000 shares with a $30pt/$15M exit.
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