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Yeah, the relative under-valuation for ELMS compared to so many of those other companies is ridiculous.
As to your remark about the shorts, they've probably been thinking that b/c of logistic problems out of China, ELMS won't be able to ramp up production to expected #s by end of this year or end of next year, and that cost-of-goods will be so high due to more expensive shipping & container rates that ELMS will incur bigger losses and not get to profitability as soon as projected (end of 2022).
My own opinion is that ELMS' veteran mgmt experience is going to be able to mitigate those problems to some extent and be able to ramp up fast enough by Q2-Q4 in 2022 to make up for the lag.
We should hear a lot more about this on the CC, especially during the Q&A.
Good news this a.m. on how ELMS will in fact go forward to produce the Class 3 truck-- i don't think there was ever any doubt about it, but the PR confirms it, and allows the mgmt to speak about the demand and market for it.... Tantalizing.
November 08 2021 - 07:00AM
Electric Last Mile Solutions, Inc. (NASDAQ: ELMS; ELMSW) (“ELMS” or “the Company”), a pioneer of electric and intelligent mobility solutions for commercial vehicle customers, today announced its intention to move ahead with plans to launch the Urban Utility vehicle after the ELMS Board approved production.
The Urban Utility is a Class 3 commercial electric vehicle targeting over 5,700 lbs. of max payload, more than 11,000 lbs. gross vehicle weight rating (GVWR) and approximately 125 miles of range. Its price positioning is expected to be competitive against ICE counterparts. The cab-over chassis design of the Urban Utility is highly configurable, and it can be outfitted with a dry box, flat bed, stake bed and other customizable cargo options. ELMS sees the introduction of the Urban Utility as an opportunity to greatly expand its target customer applications, including delivery, construction, landscaping, towing and refrigeration.
“After the prototype Urban Utility was shown and tested with customers for the past several months and received such strong feedback, we are excited to proceed with our plan for production and delivery in 2022,” said James Taylor, CEO, ELMS. “As market demand for commercial EVs continue to increase due to rising emissions standards, legislative action and corporate ESG goals, the Urban Utility is an equally capable, emissions-free option compared to its ICE counterparts.”
With the introduction of the Urban Utility, ELMS will have a product portfolio spanning the $130 billion North America Class 1-3 commercial vehicle market. It will join the ELMS Urban Delivery EV, which began production in late September and is the first Class 1 commercial EV in the market.
Yeah, the BBB uncertainties i think were adding some weakness to the EV sector. As for ELMS:
> most other EV stocks seem to be outperforming elms recently
Some of it is technical chart stuff. ELMS has been bounced up and down by the algos off resistance/support levels, especially Ichimoku Cloud T.A. levels (cloud-band lines and 9dma and 26dma).
A lot of ELMS' technical chart weakness seems to have come (in my opinion) from the fact that it was too late to benefit from the Summer-Fall 2020 momo party that zoomed up so many EV stocks, so when the terrible tech selloff occurred, especially hitting EVs, and then the anti-SPAC sell-off hit in Feb-March 2021, ELMS was vulnerable to falling much lower than the other names since it never previously got the big boost they did.
So it made for an especially weak chart that just got exploited by algos and shorts, even though ELMS' fundamentals looked much better than 80% of the companies out there.
And how to explain that 3 month period leading up to the merger-completion, wherein the stock was artificially held / manipulated right around the $9.90 - $10 level?
But even with some likely further tax-loss selling up thru late Dec. (about 7 more weeks), i think the bottom at mid-$6s has been put in and, assuming we get some reassuring news in the CC this week about ELMS getting a handle on logistics out of China, i think we'll get a big upspike in Jan.
Here's some more nuanced & detailed discussion on the federal tax credit for EVs. It would appear that buyers of ELMS vehicles would "only" get $12K of the $12.5K total federal tax credit, because $500 would be deleted due to ELMS' batteries coming from CATL in China. If, as ELMS has announced in past month, they ever partner with CATL to produce the batteries here in USA, then ELMS' vans would be eligible for the entire $12.5K tax rebate (presuming all this is passed in the Build Back Better bill, supposedly to be passed by Democrats via the reconciliation process before Thanksgiving).
I haven't mentioned yet that some US STATES also grant their own tax credits, so commercial buyers of ELMS' vans and/or trucks could wind up with even heftier discounts on purchase price.
Here's the latest relevant news report i could find on the expanded federal tax credit:
https://www.cnet.com/roadshow/news/ev-tax-credit-changes-president-biden-price-cap-trucks-suvs/
EV tax credits on the cusp of change: Price cap gets boost for qualifying trucks and SUVs
Democrats made changes to the tax credit while the House works to pass the bill. Pricier trucks and SUVs will benefit.
Sean Szymkowski
Nov. 6, 2021 4:00 a.m. PT
As the US House of Representatives moves closer to passing President Biden's Build Back Better bill, Democrats made a few last-minute changes this week to the electric vehicle tax credit. The $5,000 increase to the credit remains, but now more expensive trucks, vans and SUVs will qualify, should the bill pass both chambers of Congress. Scroll down to get the latest on where the EV tax credits stand.
Will the EV tax credit amount increase?
As of Oct. 28, it looks like the answer is yes. The Build Back Better bill includes a $12,500 EV tax credit, up from today's $7,500 available to qualifying cars and buyers. Its inclusion comes as the bill sheds multiple other elements to compromise with various Democrats.
The finer details aren't available yet, but the White House floated elements from past negotiations. To qualify, automakers will need to build the EV in the US and with union labor. So far, it appears that $5,000 more is available: $4,500 from building a vehicle with union labor and an additional $500 from using US-made batteries.
The White House said in its original October announcement that "the framework's electric vehicle tax credit will lower the cost of an electric vehicle that is made in America with American materials and union labor by $12,500 for a middle-class family." Crucially, that would disqualify Tesla for at least part of the tax credit boost, and even US automakers building EVs outside of the country, such as Ford's situation with the Mustang Mach-E.
In the latest changes made this week in the House of Representatives, Democrats increased the price cap for qualifying EVs. The new language allows for vans, trucks and SUVs with a manufacturer's suggested retail price of up to $80,000 to qualify for the $12,500 credit. Previously, the initial framework set a limit of $64,000 for vans, $69,000 for SUVs and $74,000 for pickup trucks.
The Democrats also reduced income eligibility to claim the full credit. Single filers with adjusted gross annual incomes of $250,000 or more, or joint filers with AGIs of $500,000, will not be eligible for the full credit. The dollar figures are down sharply from $400,000 for single filers and $800,000 for joint filers.
The president is keen to incentivize EV purchases, and this push comes as part of a proposed $555 billion investment into actions to combat climate change. Now, with the bipartisan infrastructure bill's passage in the US House, the Build Back Better bill is set for a vote the week of Nov. 15. It will then need to clear the Senate before the president can sign it into law.
What is the EV tax credit?
Internal Revenue Code Section 30D provides a tax credit to any person who purchased a qualifying EV during the year. It includes passenger vehicles and light-duty trucks. [...]
GOOD NEWS for the EV world: the Democrat-led infrastructure bill passed last night; it includes:
"$7.5 billion for electric vehicles and EV charging" according to Axios.com and other news sources.
It aims to fund the creation of fully 500,000 charging stations around the USA, and i assume ELMS' newly-announced charging partner EVGo would benefit from some of that largesse.
NOTE: According to news sources like CNET, the $5,000 additional EV federal rebate (which would make for a total $12,500 rebate for union-built EVs, like the ones ELMS is building at the Mishawaka plant) is in the upcoming Build Back Better bill, not in the infrastructure bill just passed last night.
I would assume the shorts are thinking that ELMS and any other EV startups will run into supply constraints out of China, and either not be able to produce as many vehicles as planned or will incur such high cost-of-goods that they won't be easily profitable in the time-frame specified.
I think that's why the stock (along with other EV stocks) has fallen so far-- look at how ELMS has traded since that Aug. conf call (i think it was on Aug 12).
But i believe that ELMS will solve this problem and i think some of the PRs the past few months are speaking to that -- e.g., opening the Asia center in China, cementing the supply relationship with CATL, etc.
Jmo.....
Worthylion, i think we have a handful of possible news items, any one of which could blast ELMS much higher:
1) news of final NHTSA safety certification, allowing the Urban Delivery van to be driven at normal speeds on public roads & freeways / highways. This would allow so many of those 45K pre-orders to become binding orders.
2) news of a big order from a really well-known entity like FedEx;
3) news of a new "big whale" investor taking a sizeable position
4) a news PR from ELMS that they are able to raise the price of their vehicles (the van and the 2022-released truck) because the extra $5,000 Federal rebate is in place (adding to the currently in place $7,500 rebate), allowing ELMS to charge more per vehicle and commercial buyers to pay even less for them.
5) news that ELMS has somehow solved the logistics problem out of China and is still on track to produce 19K vehicles in 2022 (including a certain percentage in the form of the Class 3 Urban Utility truck, which carries a higher price-tag).
ELMS - distribution partner Randy Marion group is committed to purchasing 6,000 vans by Feb. 2022 as i recall. Binding orders will be announced along the way. There's a PR about this among the dozen or more PRs over the past two months....
Also, looks like just one more step to getting NHTSA safety certification, after which the Urban Delivery van can be driven on public roads (thus far only at airports, universities/colleges, and the like.
After that certification, i expect many of those 45,000 pre-orders announced last spring to become binding orders.
And that should really launch the stock....
Btw, i've been posting a lot more about ELMS over at the ELMS ihub board.
One of the most promising developments is that EXTRA $5,000 Federal rebate for EVs that is in Biden's Build Back Better bill. It stipulates American union-built vehicles, and ELMS qualifies for that (they inherited the union contract for the Mishawaka, Indiana, plant).
This would increase the overall EV rebate to a whopping $12,500.
SO ELMS CAN CHARGE MORE FOR ITS VEHICLES, and the commercial buyer will pay LESS than a gas-powered equivalent Class 1 van, like the Ford Transit.
That will help generate huge sales for ELMS and at higher per-unit-revenues, e.g., say $36,000 for the van (up from $32,500 original price), $56,000 for the upcoming Class 3 truck in 2H 2022 (up from the currently projected price of $52,500). (Those are my estimated higher sales-prices).
IVAN - that's a very interesting find, R59. Thanks for sharing it on the board. I'll put it on my watchlist and may pick up some shares, though my few SPAC investments (especially ELMS) have taught me to be careful about stock manipulation and unexpectedly severe selloffs.
In terms of stockprice, yes-- i expect ELMS to take off next year and the next on zooming revenues and presumably cash-flow positivity late in 2022 or early 2023-- assuming they've worked out the expensive logistic problems out of China that is afflicting the entire industry.
If that extra $5K of rebate money becomes available to EV buyers with the Build Back Better bill, ELMS can easily raise the price of its vehicles and overcome the current cost-of-goods problem.
Nio has a very flashy and interesting approach in the China market. Forming those big social groups of buyers like a big "Nio family." Doubt that would be possible here in USA with ELMS or any other company.
Electric Last Mile Solutions Announces EVgo as First Partner in Charging Solutions Ecosystem
November 04 2021 - 07:45AM
GlobeNewswire Inc.
Electric Last Mile Solutions, Inc. (NASDAQ: ELMS; ELMSW), a pioneer of electric and intelligent mobility solutions for commercial vehicle customers, and EVgo Inc. (NASDAQ: EVGO), a first mover in fleet electrification and operator of the nation’s largest public fast charging network for EVs, today announced a partnership that combines best-in-class charging solutions with zero-emissions commercial EVs.
EVgo is the first charging solutions company to partner with ELMS, which plans to build out a charging ecosystem that supports different fleet customer use cases. The companies are working together to deliver EVgo’s charging solutions to ELMS’ Urban Delivery commercial EV fleets, which will support lower total cost of ownership and continuity of fleet operations.
ELMS and EVgo are developing a preferred fleet charging program to support ELMS’ commercial EVs as they reach customers. This bundled turnkey offering from EVgo targets large scale deployments of its charging solutions for ELMS customers adopting fleet electrification. The solution offering includes transition planning, hardware procurement, infrastructure deployment, software and networking, operations and maintenance, and systems integration.
“EVgo is thrilled to partner with Electric Last Mile Solutions to deliver customized charging solutions to ELMS fleet customers going electric,” said Jonathan Levy, Chief Commercial Officer, EVgo. “Working together through partnerships like this one is the best way to bring the benefits of fleet electrification to more segments, from last mile package delivery to campus use cases and more.”
EVgo and ELMS share a commitment to maximizing operational performance in a sustainable manner. EVgo can ensure that customers get the most out of their vehicles whether they need Level 2 and DC fast charging solutions at their depots, or dedicated charging hubs away from base. Customers who purchase ELMS vehicles will be able to take advantage of EVgo’s public charging network of more than 800 nationwide locations.
“It is imperative that our commercial EV customers have a charging capability aligned and integrated into their workflow so their vehicles experience zero unplanned downtime,” said Jonathan Ballon, Chief Strategy and Digital Officer, ELMS. “EVgo’s fleet portfolio and growing nationwide presence of public Level 2 and DC fast charging makes them an ideal partner to deliver on our shared customers’ expectations as they build out their EV fleets.”
Learn more about ELMS here. Learn more about EVgo Fleet Solutions here.
About Electric Last Mile Solutions, Inc.
Electric Last Mile Solutions, Inc. (Nasdaq: ELMS) is focused on defining a new era in which commercial vehicles run clean as connected and customized solutions that make our customers’ businesses more efficient and profitable. ELMS’ first vehicle, the Urban Delivery, is the first Class 1 commercial electric vehicle in the U.S. market. The Company expects to begin production of its second vehicle, the Class 3 Urban Utility EV, in the second half of 2022. ELMS is headquartered in Troy, Michigan. For more information, please visit www.electriclastmile.com.
About EVgo
EVgo (Nasdaq: EVGO) is the nation’s largest public fast charging network for electric vehicles, and the first to be powered by 100% renewable energy. With more than 800 fast charging locations, EVgo’s owned and operated charging network serves over 68 metropolitan areas across 35 states and more than 300,000 customer accounts. Founded in 2010, EVgo leads the way on transportation electrification, partnering with automakers; fleet and rideshare operators; retail hosts such as hotels, shopping centers, gas stations and parking lot operators; and other stakeholders to deploy advanced charging technology to expand network availability and make it easier for drivers across the U.S. to enjoy the benefits of driving an EV. As a charging technology first mover, EVgo works closely with business and government leaders to accelerate the ubiquitous adoption of EVs by providing a reliable and convenient charging experience close to where drivers live, work and play, whether for a daily commute or a commercial fleet.
ELMS Contact
Media: elms-svc@sardverb.com
Investor Relations: IR@electriclastmile.com
EVgo Contact
For Investors:
Ted Brooks, VP of Investor Relations
investors@evgo.com
310-954-2943
For Media:
press@evgo.com
I, too, am in this one for the longer haul. Alas, after a quick in-out profitable little trade early in the year, in Feb. i started buying heavily all the way down from upper $12s to $9.90s, then bought a little more in the $7s. Just missed some days ago getting 2K more shares in 6.50s (i was a day late).
So the avg on my 14k shares is way up at $11.25. In retrospect, i wish i'd sold in late June when it hit upper $11s and then $12 very briefly (the first time i was in the green since that Feb-April buying spree), and then could've re-bought heavily in the $8s and $7s (didn't dream it would fall all the way to the 15-month low of 6.43).
Coulda, woulda, shoulda
Anyway, i figure by 2023-2024 ELMS should be trading around $50-$80 or more. I see so much possibility for this one as the years unfold....
Folks worried about the trading action should realize it's all mainly algo-driven bots jerking the s/price up and down between standard resistance / support levels, like the Bollinger bands, 20dma, 50dma & 100dma, and the Ichimoku Cloud t.a.'s 9dma & 26dma and cloud-band lines. Just pull up some charts and plug in those indicators to see what i'm talking about.
I'd also mention that tax-loss selling will likely be in play for the next 8 weeks. And then we should see a big upward pop into the new year.
Yeah, $5000 extra in additional credits (beyond the current $7.5K) is 500 bucks more than i thought.
Makes ELMS's vans (and the coming trucks) even more appealing to commercial buyers.
Today's PR contains the factoid that the # of university vans will grow to about 325K by 2025-- that presumably will make for huge revenues for ELMS, since they've got first mover advantage and have already had a "successful collaboration" pilot program with U of Notre Dame.....
-------------------
Electric Last Mile Solutions, Inc. (NASDAQ: ELMS; ELMSW) (“ELMS” or “the Company”), a pioneer of electric and intelligent mobility solutions for commercial vehicle customers, today announced the ELMS EV Campus Program – a unique collaboration with universities nationwide that is designed to help them meet their sustainability and ESG goals.
The EV Campus Program will allow universities to pilot an ELMS Urban Delivery commercial electric vehicle free of charge for up to four weeks. The university will utilize the vehicle within campus boundaries covering a wide range of use cases during the duration of the pilot. ELMS will also install its telematics devices in universities’ current campus fleets – including in traditional gas combustion vehicles – to analyze duty cycle data and provide universities with a report proposing customized solutions to reduce their carbon emissions, lower vehicle maintenance costs and adopt robust EV charging infrastructure.
“This groundbreaking program is uniquely designed to serve colleges and universities seeking a green future,” said Ron Feldeisen, Chief Revenue Officer, ELMS. “Not only will universities have a chance to pilot the ELMS all-electric Urban Delivery van, but they will also receive a comprehensive assessment of their current fleet so they can better understand where they can achieve cost savings and drive better business by going electric.”
At a time when schools around the country are targeting aggressive sustainability goals, ELMS is launching the EV Campus Program at a time where the nearly 1,500 U.S. colleges and universities, which are targeting aggressive sustainability goals, look to transition their facilities and operations to cleaner alternatives. This includes transforming campus fleets, which can operate at a scale of more than 1,000 vehicles for large universities and are projected to increase to 325,000 units nationwide by 2025. These vehicles are used across campuses for parcel delivery, cleaning and laundry, athletics, facilities maintenance, campus dining and security, and more.
ELMS initiated a pilot program in July with the University of Notre Dame to assess how the university could advance efficiency and sustainability actions within its operations. Using advanced vehicle data analytics from its ELMS Air telematics system, ELMS identified ways for Notre Dame to save carbon emissions, capture total annual savings in fuel and maintenance costs, and reduce total cost of ownership by converting to an EV fleet. ELMS decided to offer this program nationwide due to the successful collaboration with Notre Dame.
Yesterday's big upmove sliced up through several important moving averages to even surpass the upper Bollinger band, which is presently at 8.16 on the daily chart. It's natural / normal for ELMS to consolidate a bit and come down to test that upper Bolly band as support (and not crash back down below it!).... Let's see what happens.
We may still have to deal with the headwind of tax-loss selling for ELMS and many other EV names that got trashed for most of this year....
But i'm looking for an even bigger upmove at start of Jan. 2022, assuming the co. is ramping up production nicely and supply channels aren't too clogged or costly....
Wow... great looking chart today, biggest green candle in months. Money is coming back to the EV sector. Bodes well...
I don't think EL5MS will dip all the way to $5s....
It may re-test the bottom, probably not dipping below $6.50s.
--Just my opinion, but based on chart factors.
But let's see just how bad tax-loss selling hits ELMS and other EV names.
I'm hoping that, among other things, ELMS will produce more than 1K vehicles for Q4, say, about 1,400. I think that "under-promise, over-deliver" would begin to really boost the s/p.
And of course the co. needs to come out with news that they've fully passed the NHTSA safety certification process (the Federal motor vehicle safety standards or FMVSS), so that they can sell to more than just airports and universities and the like.
Here's an excellent 8-minute "hands on" presentation from a Randy Marion representative on various aspects of the URBAN UTILITY truck, scheduled for production in 2H 2022.
The chap from RM goes through many of the external and internal features and then takes it out for a test drive, demonstrating things like the very tight turning radius, several view-cameras, and lots of internal little storage compartments (extremely useful things for a truck driver).
Don't miss this one...
Yet another PR this a.m., this one is great news on the agreement with CATL for battery supply. The mention of eventually localizing battery assembly or production (here in USA) is crucial to maximizing future gross profit margins above the base case of 21%, as p. 26 of the new Oct. 12 investor presentation makes clear: https://s27.q4cdn.com/977566062/files/doc_presentations/ELMS-Q3-Pitch-Deck-FINAL.pdf
There are so many developments it's hard to keep track here.
But don't miss going through the new Oct 2021 investor presentation.
https://s27.q4cdn.com/977566062/files/doc_presentations/ELMS-Q3-Pitch-Deck-FINAL.pdf
Many interesting items therein. Just one tidbit-- p. 17 shows (in a significant update to the graphic we've seen before) not just the superiority of the Urban Delivery van over competition in cargo size and better TCO price/costs, but now also shows the even greater superiority of the Urban Utility over its Class 2-3 competition on these parameters.
Also, first time i've seen a customer purchase price given for the Urban Utility truck-- it's given as $45K-$49K, AFTER FED REBATE.
This means revenues for ELMS of over $52K-$56K per unit. That will really juice yearly revenues if, say, 20% or more of their vehicle sales are the UU truck.
Here's a short (nearly 1 min.) video clip from fleet consultant Donlen Corporation showing some interest....
Background blurb from Wikipedia: "Donlen Corporation is an American fleet leasing and management company headquartered in Bannockburn, Illinois, a suburb of Chicago. With offices throughout the U.S. and Canada, the company provides consultation, maintenance, and outsourcing for corporate vehicle fleets...."
https://www.linkedin.com/feed/update/urn:li:activity:6851554640283099136/
[Click link to access short video]
DONLEN
5,956 followers
• 4 days ago
The Next Era in fleet is here and at Donlen sustainability is one of our main areas of focus. Joining EV 100 was just the beginning. Recently, we had ELMS stop into our corporate HQ to give our employees a hands-on experience of e-mobility commercial fleet. Tap in to see how it went. #EV #Sustainability #DonlenEV
Article about ELMS came out at 12 a.m. in Automotive News. It's behind a paywall, so i've only seen the first paragraph; i'm hoping it will get more eyes on ELMS:
https://www.autonews.com/mobility-report/electric-last-mile-solutions-aims-customers-light-packages-short-trips [Automotive News publication]
Electric vans roll off line that once made gas-guzzling Hummers
Delivery vans and other light commercial vehicles offer fertile ground for electric vehicle makers.
October 11, 2021 12:00 AM 9 HOURS AGO
Ira Boudway
PHOTO: ELMS co-founder Jim Taylor said a SPAC merger got him the money “much quicker” to restart the plant.
When the first snub-nosed electric van rolled off the assembly line last month at the Electric Last Mile Solutions Inc. plant in Mishawaka, Ind., it was a proud moment for the company's co-founder and CEO, Jim Taylor. The van, one in a run of 1,000 scheduled for this year, is among the first of its kind in the U.S.: a fully electric light-duty vehicle meant for delivery workers, contractors and other commercial fleets.
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Nice to see a bit of life returning to ELMS-- maybe the stockmarket's overall "risk on" sentiment will return and various EV names--especially and deservedly ELMS-- can see an upward return to more appropriate valuations.
After the blip of excitement in late June with ELMS' merger completing, it's been an ugly ride with ELMS (and any other EV companies one might be invested in)...
Since briefly touching that $12 mark in late June (nowhere near the earlier 2021 brief spikes over $14), the stock has seen a terrible pattern of downward falls, four failed rebounds, 8 straight red days beginning in 2nd week of Sept., and more recently 7 straight red days into early Oct., much of that mirroring the selloff of smallcaps and especially tech and EV stocks.
We may still get some weakness from tax-loss selling, but with the vans rolling off the lines at Mishawaka, IN, i think things are looking good for a robust upward stock-move in January 2022, and cont'd stock appreciation over 2022 as the co. fulfills its production guidelines.
Almost everyone invested in the EV sector other than TSLA (which has recovered somewhat in 2H 2021) is licking their wounds after the waves of relentless selling over so much of this year.
Almost the entire EV sector has just been trashed for months, and now so much of the small- / mid-cap market has been sold off, too, in this "risk off" market sentiment. That's why every little uptick of ELMS gets sold off by the algos, day-traders and weak hands.
We're probably also getting some tax loss selling. I've noticed in many years that can begin in Aug-Sept.
At a certain point big money will rotate back into the EV sector, especially if/when the reconciliation bill is passed by Congress.
Those $12,500 Federal rebates will really help ELMS take market share from the ICE vehicles.
ELMS - A nicely worded PR this morning as they roll out the USA's first Class 1 commercial EV vehicles. Too bad the entire EV sector has been in the dumps since Feb-March (especially the SPAC and de-SPAC'd EV companies). Otherwise ELMS would likely be 60% - 80% higher by now...
ELMS Ships First Urban Delivery EVs to Customers
September 29 2021 - 09:15AM
GlobeNewswire Inc.
Electric Last Mile Solutions, Inc. (NASDAQ: ELMS; ELMSW) (“ELMS” or “the Company”), a pure-play commercial electric vehicle (“EV”) company focused on redefining productivity for the last mile, today announced that it has shipped its first Urban Delivery units to customers, marking the launch of the first commercial Class 1 EV in the U.S. market.
The Urban Delivery EVs came out of ELMS’ production facility in Mishawaka, Indiana and were shipped to Randy Marion Automotive Group, one of the country’s largest commercial dealerships, as part of a binding purchase order for 1,000 units that was announced last week [Randy Marion has ordered 6,000 of the first 8,000 produced].
“This launch and delivery marks a key milestone for Electric Last Mile Solutions, our partners, and our shareholders. We are now delivering our transformative and sustainable EV solutions to commercial customers and solidifying our first-mover status in the segment,” said James Taylor, ELMS Co-Founder and CEO. “Supported by a seasoned workforce at a plant that has produced American icons, ELMS has positioned itself at the vanguard of the commercial electrification movement. We now look forward to continuing our momentum and ramping to mass production to meet our customer demand.” [ELMS says they're still on track to produce 19,000 vehicles for 2022, including the higher-revenue Urban Utility Class 3 truck]
ELMS’ unique, capital-efficient business model enables the Company to quickly bring to market segment-defining commercial EVs along with connected and customized solutions for an array of customers in the last mile delivery and services space.
About Electric Last Mile Solutions, Inc.
Electric Last Mile Solutions, Inc. (Nasdaq: ELMS) is focused on defining a new era in which commercial vehicles run clean as connected and customized solutions that make our customers’ businesses more efficient and profitable. ELMS’ first vehicle, the Urban Delivery, is the first Class 1 commercial electric vehicle in the U.S. market. The Company expects to begin production of its second vehicle, the Class 3 Urban Utility EV, in the second half of 2022. ELMS is headquartered in Troy, Michigan. For more information, please visit www.electriclastmile.com.
A nicely worded PR this morning and "rather historic," no?
ELMS Ships First Urban Delivery EVs to Customers
September 29 2021 - 09:15AM
GlobeNewswire Inc.
Electric Last Mile Solutions, Inc. (NASDAQ: ELMS; ELMSW) (“ELMS” or “the Company”), a pure-play commercial electric vehicle (“EV”) company focused on redefining productivity for the last mile, today announced that it has shipped its first Urban Delivery units to customers, marking the launch of the first commercial Class 1 EV in the U.S. market.
The Urban Delivery EVs came out of ELMS’ production facility in Mishawaka, Indiana and were shipped to Randy Marion Automotive Group, one of the country’s largest commercial dealerships, as part of a binding purchase order for 1,000 units that was announced last week.
“This launch and delivery marks a key milestone for Electric Last Mile Solutions, our partners, and our shareholders. We are now delivering our transformative and sustainable EV solutions to commercial customers and solidifying our first-mover status in the segment,” said James Taylor, ELMS Co-Founder and CEO. “Supported by a seasoned workforce at a plant that has produced American icons, ELMS has positioned itself at the vanguard of the commercial electrification movement. We now look forward to continuing our momentum and ramping to mass production to meet our customer demand.”
ELMS’ unique, capital-efficient business model enables the Company to quickly bring to market segment-defining commercial EVs along with connected and customized solutions for an array of customers in the last mile delivery and services space.
About Electric Last Mile Solutions, Inc.
Electric Last Mile Solutions, Inc. (Nasdaq: ELMS) is focused on defining a new era in which commercial vehicles run clean as connected and customized solutions that make our customers’ businesses more efficient and profitable. ELMS’ first vehicle, the Urban Delivery, is the first Class 1 commercial electric vehicle in the U.S. market. The Company expects to begin production of its second vehicle, the Class 3 Urban Utility EV, in the second half of 2022. ELMS is headquartered in Troy, Michigan. For more information, please visit www.electriclastmile.com.
Some more details about the agreement between ELMS and Randy Marion distribution partner in today's filing:
Item 1.01. Entry into a Material Definitive Agreement.
On September 21, 2021, Electric Last Mile, Inc. (“ELM”), a wholly owned subsidiary of Electric Last Mile Solutions, Inc., executed a Firm Order Agreement (the “Agreement”) with Randy Marion Isuzu, LLC dba Randy Marion ELMS, a North Carolina limited liability company (“Randy Marion”), for the purchase by Randy Marion of certain electric urban delivery and urban utility vehicles, including a Class 1 electric urban delivery vehicle (the “Vehicles”).
Pursuant to the Agreement, Randy Marion will purchase and ELM will sell to Randy Marion a total of not less than 6,000 of the initial 8,000 Vehicles manufactured and produced by ELM (the “First Order Requirement”). In connection with the execution of the Agreement, Randy Marion issued a purchase order for 1,000 Vehicles. Pursuant to the Agreement, Randy Marion is required to issue another purchase order for at least 1,000 Vehicles on or before November 15, 2021 and all additional purchase orders required to fulfill the First Order Requirement must be issued by February 28, 2022. In the event that ELM has outstanding orders, in aggregate, for more than 2,000 Vehicles from other dealers before the completion of its manufacturing and production of its first 8,000 Vehicles, Randy Marion is required to issue purchase orders to fulfill the remainder of the First Order Requirement within three business days of receiving written notice from ELM. Pursuant to the terms of the Agreement, ELM may not sell any Vehicles to any person or entity that is not an authorized ELM dealer.
The Agreement expires upon the earlier of: (a) the First Order Requirement being satisfied or (b) December 31, 2022, unless it is terminated early. Upon the expiration or termination of the Agreement, Randy Marion has a right, for a period of one year, to sell back to ELM: (i) any new, unused, and undamaged Vehicles with less than 500 miles, then unsold in Randy Marion’s inventory, (ii) new, unused, and undamaged ELM parts and accessories, contained in the original packaging, and (iii) special service tools recommended by ELM that are designed to service the Vehicles.
Another good post about ELMS over in the comment thread to the S.Alpha article by Damien Robbins. The poster speaks from experience as a former owner of a Class 3 diesel truck fleet. And note the last paragraph about how a big automaker could realize tremendous value simply by buying out ELMS (my guess is that the current insiders would not like to let it go within the next 6-12 months for anything less than $28-$30/share):
TVincent
22 Sep. 2021, 4:18 PM
Comments (110)
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Good article - thanks to author. Today they announced deal with Randy Marion Auto Group including a binding PO for 1,000 vehicles and stating that production started on Sept 20 and the first vehicles will ship out on Sept 28th. Three cheers to them for meeting the crash test and production deadlines that they set. They are building a reputation for transparency and integrity.
According to management, Nissan got out of the EV truck business early because they couldn't make money at it. ELMS has several advantages - no legacy ICE operations, assembly-only production (parts are mostly assemblies - no painting, metal bending, etc.), overseas parts sourcing and lower China costs, low selling price and quicker by 1/3 of the time for customization since they do it in-house.
Fleets want no-nonsense vehicles and are focused on TCO (total cost of ownership) and ELMS vehicles with a low cost and low maintenance fit the bill. Everyone talks about doing the right thing with Carbon, but really, buying these vehicles is simply good business. I ran a company with a fleet of diesel trucks (Class 3+) that went out daily delivering product. They had constant problems, we lost revenue when they broke down and cost a fortune to tow and fix, customers were unhappy when they didn't get their order, and the maintenance schedule was rigorous. EVs reduce or eliminate many of these problems. They are simpler machines.
I would run to replace those trucks with EVs and would save a fortune.
There is going to be a substantial replacement market and competition shouldn't be a factor here for several years as ICEs are replaced.
Lastly, since ELMS has solved all of the problems to producing a low cost last mile vehicle, (Crash test design, low cost sourcing, assembly model, low TCO), a competitor should just buy them out and keep them as a separate division and ramp up production. At their market cap and current interest rates, it's a smart business move and like their vehicles, a great value
Over at Stocktwits, there was a great little summary blurb about investing in ELMS. The only point on which i'd disagree is ELMS' current valuation-- it's not "reasonable" but severely undervalued by at least 50%-80%, imo.
TTownTrader
Bullish
04:36 PM
$ELMS - opened a long position here this week, mid 7s CB. Been watching for quite some time. Only EV speculative worth it right now imo. Valuation is reasonable here, real contracts, production, early stage entry, low short interest, tutes invested, potential stimulus, compelling ESG attraction for corporations, good business plan, compelling growth projections, good guidance, last mile delivery sector vs competitive retail. I could go on but this seems like easy money over the next couple years assuming they can meet projections.
So if ELMS sells 1K Urban Delivery vans from now 'til Dec. 31, that should amount to about $33M revenue (accounting for August CC news of selling for $34.5K not $32.5K, but also assuming some discount for bulk buyers).
Next year's (2022) revenue mix becomes very interesting and lucrative with the addition of ELMS' Class 3 "Urban Utility" truck, which may list for upper $30Ks to low $40Ks and be very price competitive.
So i'm estimating at least $650M in revenues for 2022, assuming logistics resume some semblance of normalcy and the co. can produce/sell their estimated 19K units.
If govt grants the extra $4.5K Federal rebate for EVs as presently being discussed (plus the current $7.5K rebate) both the Urban Delivery van and that Urban Utility truck will be real bargains right out the door for commercial buyers ($12K less than list price)-- not to mention the far lower TCO (total cost of ownership) over the years.
By 2024-25 they may need a second factory to produce an additional 100K vehicles per year (total 200K). With that, co. should be able to attain 8.00 EPS and a $120 shareprice.
Just dreamin'-- but within the bounds of reality for a co. that has just begun producing the first Class 1 EV van in USA with a Class 3 EV truck coming along sometime next year.....
ELMS - on awaited news, jumping up pre-mkt from record lowest close yesterday. Production of their EV "Urban Delivery" van has finally begun (actually, earlier than many thought). And their first "binding order" announced--1K vans ordered by Randy Marion partnership for fleet-vehicle clients (out of 45K non-binding orders announced in Spring 2021, incl. 6k from Marion). ELMS announced last month that they would be producing 1K vehicles by year's end and then hope to ramp up to over 19K vehicles (including their Class 3 Urban Utility truck) over 2022. Let's see if or how much that is pressured by logistics out of China. ELMS' announcement several days ago of opening up their Asia-Pacific Operations Center may help significantly with the logistics jam out of Asia.
https://ih.advfn.com/stock-market/NASDAQ/electric-last-mile-solut-ELMS/stock-news/86109183/electric-last-mile-solutions-secures-1-000-binding
[... ELMS...] announced today that it has received a binding purchase order for 1,000 units of its Urban Delivery vehicle from its strategic distribution partner, Randy Marion Automotive Group.
Start of production for the Urban Delivery took place on September 20 and the Company plans to ship its first units from its production facility in Mishawaka, Indiana on September 28.
“From the outset, we stated that our goal was to deliver the first commercial Class 1 EV to the U.S. market, and with the start of production this week we will achieve that milestone,” said ELMS CEO James Taylor. “This order is reflective of the work that we do with our customers and sales channel partners to understand and meet their unique business needs.”
“There is no doubt that the commercial last mile delivery market is demanding electric vehicles and ELMS is leading the charge,” said Randy Marion, founder and CEO of Randy Marion Automotive Group. “Our customers are excited to get their hands on the Urban Delivery vehicle for their many use cases, including e-commerce transportation, utilities, telecommunications and other commercial vehicle applications.”
It has begun. Production, that is, for first ELMS Urban Delivery vans. And first "binding order" --1K vans ordered by Randy Marion for fleet clients.
https://ih.advfn.com/stock-market/NASDAQ/electric-last-mile-solut-ELMS/stock-news/86109183/electric-last-mile-solutions-secures-1-000-binding
[... ELMS...] announced today that it has received a binding purchase order for 1,000 units of its Urban Delivery vehicle from its strategic distribution partner, Randy Marion Automotive Group.
Start of production for the Urban Delivery took place on September 20 and the Company plans to ship its first units from its production facility in Mishawaka, Indiana on September 28.
“From the outset, we stated that our goal was to deliver the first commercial Class 1 EV to the U.S. market, and with the start of production this week we will achieve that milestone,” said ELMS CEO James Taylor. “This order is reflective of the work that we do with our customers and sales channel partners to understand and meet their unique business needs.”
“There is no doubt that the commercial last mile delivery market is demanding electric vehicles and ELMS is leading the charge,” said Randy Marion, founder and CEO of Randy Marion Automotive Group. “Our customers are excited to get their hands on the Urban Delivery vehicle for their many use cases, including e-commerce transportation, utilities, telecommunications and other commercial vehicle applications.”
Chart watching here-- the weekly (not daily) S&P500 chart (e.g., SPY), currently exploring a range just below its rising 20dma, hasn't had a major test of its rising 26dma (below that) since early May 2020. Below that come the rising lower Bollinger band and, further down, the rising 50dma.
Will be interesting to see if the mkt wants to do its 10% correction right now (might be a healthy washout of any remaining excess exuberance), or if greedy hands will come back in by tomorrow or next day to start bidding things back up from this 5% pullback.
NOTE: S&P500 hasn't had 3 weeks of red since Aug-Sep 2020. Let's see if this week closes out red to match that.
As we've heard here, one needs to look at the indices with more granularity. The major indices have been propped up by the biggest / most popular names. SO MANY STOCKS are actually in the toilet and have been for months.
It's hilarious that, in a deep sea of red on almost everything on my long watchlist, ELMS is moderately in the green (after being pounded down almost all year).
According to mgmt in news releases, first vans should be rolling out within the next 10 days....
DC-- glad to hear that you still have 1/2 your original shares... Big Congrats!
Another bullish SeekingAlpha article from Damien Robbins on ELMS:
https://seekingalpha.com/article/4455949-electric-last-mile-elms-stock-on-track-production-targets
DC, you wrote: "Imagine some of the old timers from this board are wishing they hadn't bailed..."
That would definitely include me; i had 135k shares but felt compelled to sell (for about a 70% profit as i recall) several months after the full merger with RCP Advisors when i could no longer understand what the company was about. (RE: the Warren Buffett statement: "I don't invest in anything i don't understand.")
I'm not sure i could have stomached that bad dip back down to 70 cents during the market crash in Dec. 2018 (my cost-basis avg had been 67 cents).
I still don't understand how PIOE can have this present valuation based on EPS, but WTFDIK??
Really glad to see folks here making amazing profits since the stock took off in Jan. 2020 and this year, despite the pullback in Jan. 2021, keeps attaining new heights!
Yes on all points.
By the way, it would be HUGE NEWS for ELMS if we correctly assume ELMS vehicles would be eligible for that newly proposed (not yet passed by Congress!) extra $4,500 in federal tax credits for any EVs that are made here in USA with UAW unionized workers.
The proposed increase of the EV tax credit has been widely reported in the news, e.g., https://www.cnet.com/roadshow/news/ev-tax-credit-bill-biden/
Remember that as part of the merger closing, ELMS inherited responsibility for a union contract with UAW auto-workers at Mishawaka, IN plant. Here's the relevant paragraph from the enormous SEC filing:
"In connection with the SERES Asset Purchase Agreement, ELM agreed to assume all obligations under an agreement between SERES and International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and its local Union #5, dated March 11, 2018. ELM agreed to provide all union and non-union employees with salary, insurance and welfare equal to or greater than the benefits such employees received at the Transfer of Possession."
An extra $4.5K tax credit would price the ELMS Urban Delivery van (and next year the Urban Utility truck) at much lower-than-parity compared to gas-powered vehicles.