Don't sleep on Hyundai.
Tesla (TSLA) gets the big headlines for electric vehicles. Nikola (NKLA) made the recent splash after a huge short squeeze, plenty of its own media attention, and a CEO that is working hard to be Elon Musk 2.0. Hyliion is making some noise in the truck market as well.
Nikola did announce an order for 2500 electric garbage trucks from Republic Services Group. This is a company with a fleet of 16,000 trucks making a big move toward sustainability and cutting carbon footprint. Roughly 20% of those trucks are powered by natural gas. This purchase of EV garbage trucks will equal about 15% of the current fleet. The company is pursuing a "blue planet" move over the next decade, so I would anticipate they will make a move to replace the entire fleet to natural gas and/or EV over the next decade. If Nikola holds the contract, it should equate to billions in revenue over the next five to seven years.
Although I didn't see revenue estimates, my guess is this will be worth $750 million to $1.5 billion to Nikola in 2023 and 2024. RSG holds the option to bump the order to 5000 trucks, so we could see that revenue figure increase significantly. These are just my estimates, so take them with a big grain of salt, but this type of order starts allowing investors and traders to put some price to sales multiples behind the valuation. I also think it may be enough to put a floor under the stock in the $33 to $35 range with maybe $30 being a downside overshoot.
Mullen Technologies and Fisker, two smaller names coming public via a reverse merger with Net Element (NETE) or special acquisition company Spartan Energy (SPAQ) , respectively, hold my interest in terms of concept, experience, diversity (in the case of Mullen), price, and product line, but these will be in the SUV market. We have Kandi Technologies (KNDI) , NIO (NIO) , and Li Auto (NMS) on the Chinese side of the small car and SUV market as well. Toss in a few niche players and we have ourselves plenty to talk about.
But the one name I rarely see discussed is Hyundai. The company already has EV trucks on the ground in Switzerland. Today, the company announced its new brand, Ioniq, a line of sharp looking electric vehicles. This includes a midsized crossover, a sedan, and a large crossover. The hatchback crossover should hit the market in 2021 with the other two following in 2022 and 2024.
Although, they aren't a player in the hot EV truck market I wouldn't call that a negative. Honestly, that market feels like it will have the most competition for the fewest net buyers. Instead, Hyundai will play the bookends with the more affordable family market to the high-end tractor trailer market.
Unfortunately, there are no ADRs to trade here. For those with access to the KOSPI via their broker, this one can be bought on its most liquid market. Here in the states, there are shares via the OTC market under the ticker HYMTF, but the volume is extremely low and the bid-ask spread is crazy wide.
If you can find a way to get exposure through a foreign index and you like the EV market, I would give it a try. The South Korea ETF will only give you a 2% to 3% exposure. That ETF is 20%+ Samsung, so it doesn't work as a good proxy. At the very least, watch what Hyundai is doing because their upside may mean more limits to the upside of other players in the market.