Another electric truck manufacturer goes public. It is a sign that there is a market for electric vans.
Electric vehicles for commercial use are ready for prime time. One sign is the valuation of about $80 billion that electric truck maker Rivian is looking for when it goes public soon. Another example is simply the rash of electric truck and van startups competing for a slice of the EV pie.
And Monday, another electric transportation company appeared on investors’ radar. Agreed via Motors be bought by EV conglomerate
(ticker: IDEX) in a $600 million all-stock deal that has yet to be approved by shareholders.
The deal has shares of
(ticker: IDEX) in motion. The stock rose 4.4% in afternoon trading. The
increased by 0.6%. The
Dow Jones Industrial Average
Via Motors is focused on producing class 2 to class 5 electric trucks and vans. A class 2 can be a full-fledged pick-up or van; a class 5 can be a large removal van. In comparison, a car is a class 1 and a semi is a class 8.
Other EV startups working on commercial vehicles include Rivian,
At $600 million, the Via-Ideanomics deal is one of the cheaper commercial EV games. Lordstown’s market cap is approximately $1 billion.
comes in with a market cap of $1.7 billion. Arrival’s market cap is well above $7.2 billion.
One of the reasons Via is cheaper is because it’s not ready to ship trucks yet; production is scheduled for 2023.
But Via has an asset up its sleeve: CEO Bob Purcell, who ran
(GM) electric car industry in the 1990s. He is the father of the legendary GM EV1, the first mass-produced EV and the first GM designed from the ground up as a plug-in.
“We were the car that started it all…I was very proud of my group,” Purcell told Barron’s after Via and Ideanomics announced their deal. “We invented that technology… things like torque vector control for motors, battery management systems… none of that existed before the EV1.”
Now Purcell has turned to commercial electric vehicles. Via could have pursued a traditional IPO or a merger with a special purpose company, or SPAC. Instead, the start-up went with Ideanomics, which focuses on EV charging, storage and EV manufacturing.
“We have all [electrical] grid extension, charging capabilities… we have component and sub-component manufacturers,” Ideanomics CEO Alf Poor explained to: barons. “This is one of the key components of getting close to those big commercial fleet operators like the
Ideanomics shareholders have yet to sign the deal. But based on the stock market response Monday, the deal should be received with enthusiasm.
Write to Al Root at email@example.com