FN Media Group Presents Oilprice.com Market Commentary

LONDON, July 28, 2023 /PRNewswire/ — Electric vehicle sales are set for a 35% year-on-year increase in 2023, with national policies and incentives providing further impetus for producers and consumers. So far, overall, this has been rewarding for investors. Companies mentioned in this release include: Tesla Inc. (NASDAQ: TSLA), Honda Motor Co., Ltd. (NYSE: HMC), Toyota Motor Corporation (NYSE: TM), Li Auto Inc. (NASDAQ: LI), Lucid Group Inc. (NASDAQ: LCID).

While the top 14 EV stocks had a market capitalization representing only 13% of that of the Top 10 vehicle manufacturers as of the end of 2019, they still managed to outperform them. That trend continued through last year, both with EV and battery stocks.

Electric car sales exceeded 10 million units in 2022, with their market share steadily climbing, from less than 5% of new cars sold in 2020 to 14% in 2022. In the first quarter of this year, we already saw a 25% jump in sales, year-on-year. But this space has become extremely crowded, resulting in a price war that is making investors uneasy.

It’s time to find a new niche in the EV segment where first-movers have a very clear advantage: electric boating, where innovators hope to take the EV revolution off-road. The waterways are going electric, too.

That’s why the next big thing in racing is all-electric, with NFL superstar Tom Brady joining the UIM E1 World Championship with ownership of an electric boat racing team. The inaugural season of the EV boating world championship is set to launch in early 2024.

The electric boat playing field is far less chaotic and crowded, and the first-mover advantage goes to Vision Marine Technologies (VMAR), which offers a proprietary PowerTrain outboard motor that is being used in the launch of the fastest electric speedboat in its class on the market.

The newly unveiled H2e Bowrider speed boat took the Paris Boat Show by storm in December, and made its official debut in February in Miami, with deliveries expected to start this summer. 

The boat, developed in partnership with Four Winns, is special because it showcases VMAR’s E- Motion 180 HP electric outboard motor. That motor, with proprietary PowerTrain technology, makes the H2e Bowrider the first all-electric series production bowrider on the market.

The Sound of Silence Opportunity

Advertisement

The global electric boat market was valued at $5 billion in 2021, and is projected to reach $16.6 billion by 2031, growing at a CAGR of 12.9% from 2022 to 2031. 

Narrowing that down by type, the 40-foot electric boat market alone is worth $1.9 billion as of 2023, and is set to hit $4.93 billion by 2030 for a growth rate of 14.6% during that time period.

As we speak, the multi-billion-dollar boat battery market is undergoing its biggest transition since the invention of the boat motor itself. Not only is the marine battery market forecast to grow by 18.6% to 2030, but it represents a $2-billion opportunity for investors over the next five years. And while climate change is a key element propping up the electric boating industry, it’s not the only ‘attraction’:

• Electric boats are quiet. They completely change the boating esthetic by removing the sound of the loud outdoor motor, which overwhelms all other sound at sea.
• They’re safe, too. There’s no risk of gasoline leaks or carbon monoxide poisoning common with internal combustion engines.
• The consensus seems to be that electric boat motors, by design, are more robust than their loud and dirty predecessors, and they also require a lot less frequent maintenance than a gasoline engine. They’re cheaper to operate over the long-run: No oil changes, no filters or tune-ups, and while combustion engines require maintenance every 100 hours, electric motors (on average) can go up to 3,000 hours without.

The World’s Most Powerful Electric PowerTrain

Vision Marine’s E-Motion is the first fully electric, production-ready, high-performance 180 HP outboard motor on the market. The 180E Electric Powertrain can provide a consistent 180 HP of pure electric power, with cutting-edge high voltage power when you need it most, and a completely scalable powerbank.

The proprietary technology is end-to-end: It includes the batteries, the engine and the software, making it the only turn-key solution for boat manufacturers in its class.

The E-Motion outboard motor can fully charge overnight with no additional infrastructure and boasts the highest horsepower engine in its class. And from a cost perspective, it out-competes everyone else, which should help it to capture new market share.

Vision Marine’s (VMAR), E-Motion motor isn’t confined to speedboats, either; they’re turning pontoon boats into faster, better and cleaner versions of themselves.

VMAR is in the process of equipping a pontoon with electric propulsion and solar panels for the longest known electric boat run in America (and possibly in the world). VMAR’s Zenith pontoon will set off in Virginia on a 1,050-nautical-mile journey to Miami, Florida, to showcase the capabilities of sustainable electric power.

Last September, right out of the gate, VMAR received and initial purchase order from the North America’s Limestone Boat Company for $2 million worth (25 units) of E-Motion 180E outboard motors and Powertrain systems. Limestone is now moving into scheduled production, with delivery target to dealers set to begin in 2024.

VMAR’s proprietary electric motor and powertrain system turns any boat into an electric boat, which makes its strategy to sell motors (not boats) to OEMs an incredibly savvy one in a market flooded with EV makers who are spending more money than they might ever make.

Advertisement

A Second, Disruptive Revenue Chain

VMAR also plans to plug in the boat rental market. The global boat rental market (across all boat types) was valued at $18.2 billion in 2021, and is projected to reach $31.2 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031. It’s a huge market that is about to go electric.

And, again, VMAR has first-mover advantage. VMAR’s flagship Newport business managed to serve 300,000 clients in the first three years, annualizing $4 million in revenues with a 35% profit margin. 

By the end of 2024, Vision Marine (VMAR), expects to be free-cash-flow positive, and by 2025, it expects to have two profitable and growing divisions, after which the scaling is expected to gain further momentum. 

Traditional Carmakers Are Work Keeping An Eye On

Tesla Inc. (TSLA) is undoubtedly the leader in the electric vehicle industry, known for its innovative and high-performance vehicles. With a vision to ‘accelerate the world’s transition to sustainable energy,’ Tesla has revolutionized the auto industry, proving that electric vehicles can be both desirable and profitable. From its high-performance Model S to the more affordable Model 3, Tesla has a range of vehicles that cater to different segments of the market.

One of Tesla’s core strengths lies in its vertical integration, controlling everything from vehicle design and manufacturing to its proprietary Supercharger network. This enables Tesla to continually innovate and rapidly deploy new features. For instance, Tesla’s over-the-air software updates regularly provide owners with new functionalities and performance enhancements, something few other automakers can offer.

Honda Motor Co., Ltd. (HMC), one of the world’s largest automakers, has been ramping up its efforts in the electric vehicle market. The company has set an ambitious goal to make 100% of its auto sales in major markets electric by 2040, indicating a strong commitment to transitioning from traditional internal combustion engines.

Honda’s electric vehicle strategy includes not only battery electric vehicles (BEVs) but also fuel cell electric vehicles (FCEVs) like the Honda Clarity Fuel Cell. This diversified approach to electrification could help Honda cater to various market needs and regulatory environments. The company is also collaborating with General Motors on EVs, intending to leverage economies of scale and shared expertise.

Toyota Motor Corporation (TM) is the world’s largest automaker, renowned for its manufacturing efficiency and reliability. Toyota has been a pioneer in hybrid technology with its iconic Prius model and continues to invest heavily in various forms of electrified vehicles, including hybrids, plug-in hybrids, battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs).

Advertisement

One area where Toyota is unique is its continued focus on hydrogen fuel cell technology. While most of the auto industry is focusing on battery electric vehicles, Toyota is one of the few automakers pushing fuel cell technology, with vehicles like the Toyota Mirai. The company believes hydrogen fuel cells can complement batteries, particularly for long-haul and commercial vehicles.

Li Auto Inc. (LI) is a Chinese electric vehicle manufacturer that specializes in plug-in hybrid electric vehicles (PHEVs), which they refer to as Extended-Range Electric Vehicles (EREVs). This is a unique approach in the current EV market, where most companies focus on pure battery electric vehicles (BEVs). Their vehicles, such as the Li ONE, can run on electricity for daily commuting and switch to gasoline for longer trips, providing flexibility for the users.

Li Auto’s EREV strategy could be particularly appealing in regions where EV charging infrastructure is not fully developed, as it alleviates range anxiety while still offering most of the benefits of electric driving. The company’s focus on SUVs, a popular segment in China and globally, could also be a growth driver.

Lucid Group Inc. (LCID) now known as Lucid Group after its merger with Churchill Capital Corp IV, is an American electric vehicle manufacturer that focuses on luxury vehicles. Their first model, the Lucid Air, has been praised for its technological advancements, luxurious features, and impressive range, offering over 500 miles on a single charge.

Lucid’s strategy of targeting the luxury segment sets it apart from other electric vehicle startups. By focusing on high-end, high-margin vehicles, Lucid is looking to establish a strong brand and solid financial footing before potentially moving into more affordable segments. Lucid is also working on energy storage solutions, similar to Tesla’s energy business, which could provide additional revenue streams.

By. Josh Owens

IMPORTANT NOTICE AND DISCLAIMER

This communication is a paid advertisement. Oilprice.com and its owners, managers, employees, and assigns (collectively “the Publisher”) is occasionally paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Vision Marine Technologies Inc (VMAR) to conduct investor awareness advertising and marketing. Vision Marine paid the owner of Oilprice.com an out-of-the-money Common Share Purchase Warrant entitling the owner of Oilprice to purchase 250,000 shares of common stock between August 21, 2023 and February 21, 2026 at a price of USD $4.21 per share. This compensation should be viewed as a major conflict with our ability to be unbiased. 

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in such articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.

Advertisement

SHARE OWNERSHIP. The owner of Oilprice.com owns shares and/or stock options of the featured company and therefore has an additional incentive to see the featured companies’ stock perform well. The owner of Oilprice.com has no present intention to sell any of the issuer’s securities in the near future but does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuer in the market. The owner of Oilprice.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies impacting the company’s business, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc. 

INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

TERMS OF USE. By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http://Oilprice.com/terms-and-conditions If you do not agree to the Terms of Use http://Oilprice.com/terms-and-conditions, please contact Oilprice.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY. Oilprice.com is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.

DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

Contact Information:

Media Contact e-mail: 
[email protected]
U.S. Phone: +1(954)345-0611

Advertisement

View original content:https://www.prnewswire.co.uk/news-releases/this-may-be-the-best-way-to-play-the-700-billion-ev-boom-301888040.html