FLUX can penetrate its markets faster than TSLA - because they are selling a replacement battering into an existing market where the equipment is already electric - but using the decades old lead-acid packs. It is absolute no-brainer, the rationale for switching from lead-acid to lithium-ion given a large number of performance and cost benefits. Flux batteries cost more - but deliver a total return on investment that is far superior to lead-acid. In particular - lithium-ion can perform for more hours in a 24 hour shift than can lead-acid, which takes 8 hours to charge and requires 8 hours to cool (if you don't let it cool - it can substantially reduce the useful life of lead-acid). Lithium needs no cooling and can be charged on the go - like during lunch. Also, lithium has been shown to require much less electricity to reach full charge - so that's another area of savings and environmental benefit.
TSLA has a much tougher climb than FLUX in gaining market share, as converting combustion engine car drivers to electric faces a range of issues including the development of the charging infrastructure as well as improving drive distances and consumer preferences. Clearly their product is great - and the performance is impressive - the point I'm trying to make is that Flux doesn't need a customer to make a big change - they already have electric vehicles - this is just about choosing a different energy storage system - sort of like choosing high octane or low octane gas.
But large companies are slow to adopt new technology or products - as they are risk averse and don't want to get burned by being on the cutting edge.
Importantly, FLUX has been building market awareness and relationships with top food & beverage customers and the top forklift OEMs for nearly 4 years - so they are already known and I believe respected despite their very small stature. They also have what appears to be the strongest base of technical and other approvals - to validate they product - like UL approval ISO 9001, etc.
The conversion from lead-acid to lithium-ion seems to have started in earnest, and we'll see the progress they have made when they report Q2. Their releases point to their having already exceeded their full year revenue of $902k in just the first 6 months of FY 2018 ending June 30, 2018 - and the pace of adoption seems to be accelerating. That's before Class I batteries that they expect to start selling this spring - they have one in test with a major manufacturing co in the midwest.
The one challenge for FLUX is that they are undercapitalized - but there's nothing like demonstrating market viability with major customers to help shake out funding - so Flux's business progress should help them address that challenge - which has certainly slowed the pace of their growth the past few years.
