ADS-TEC, Another EV Charged Action Under The Radar, Has Arrived For Investors

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Courtesy of ADS-TEC

Another electric vehicle charging company is officially listed on the stock exchange.

The manufacturer of fast charging equipment ADS-TEC Energy has announced the completion of its merger SPAC with European Sustainable Growth Acquisition. Now the ticker symbol changes to “ADSE” from “EUSG”.

Investors interested in ADS-TEC could, of course, have invested in SPAC, but now it’s all official and ADS-TEC has around $ 107 million in new capital to grow its business. ADS-TEC made its debut in Europe. One of the things the money will do is help grow the business in the United States.

ADS stock was down around 5% on Thursday. At $ 9.24 per share, the company’s pro forma market capitalization is approximately $ 460 million based on approximately 50 million shares outstanding.

This puts ADS on the small side of electric vehicle charging companies.


Charging point


Charging point

has a market capitalization of approximately $ 5.7 billion.


EVgo

(EVGO) and


Wallbox

(WBX) have caps of around $ 2.6 billion.


Volta

(VLTA) has a market capitalization of approximately $ 1.2 billion. Allego, which has yet to complete its PSPC merger, is valued at around $ 3.1 billion.

All charging companies are a little different. ChargePoint sells a lot of equipment. EVgo and Allego will operate charging stations. Volta is building its charging ports in prime locations, hoping to generate additional revenue from business partners looking to attract customers.

ADS-TEC is primarily a hardware seller. But he sells fast charging systems with a twist.

ADS fast chargers can be placed anywhere, with no robust electrical infrastructure required for DC charging. The most advanced electric vehicle charging equipment requires much more than a household 220-volt outlet that an electric clothes dryer or stove could be plugged into. Instead of modernizing the electrical infrastructure, ADS uses battery packs to store the necessary electrical energy. Battery packs take care of existing grid infrastructure, and then battery packs can provide the juice needed to quickly charge an EV.

“ADS-TEC Energy is now well positioned to expand the development and deployment of our buffer battery technology platforms in European and US markets,” CEO Thomas Speidel said in the company press release.

He uses the term buffered battery to describe his company’s technology. “We have already shipped hundreds of battery-backed ChargeBox platforms and are rapidly expanding our reach to meet the ever-growing need for super-fast charging capabilities. ”

The more electricity a charger can supply to an EV, the faster it can recharge. Investors can think of DC fast charging as gas stations with a bigger hose. Today’s fast charging systems can provide 50 or 60 miles of range in just a few minutes of charging.

Not all locations will need battery backup, but getting fast charging solutions in all the locations needed to make EV charging ubiquitous will require battery backup, Speidel said. Barron. Later, all that software-networked battery storage can deliver electricity to the grid at times when EVs don’t need that capacity.

Even taking into account the early decline, ADS (formerly EUSG) stock hasn’t done much over the past month. Shares have been below $ 10 for most of the past few months. The company appears to be flying under the radar. Other paying stocks suffered as more speculative growth stocks were sold in part due to the prospect of an interest rate hike in 2022. The Federal Reserve has announced plans to raise rates three times next year and higher rates hurt growth stock valuations the most.

Along with the Fed, the potential demise of President Biden’s Build Back Better deal hurt EV charging stocks. There was money in the bill for electric vehicle charging infrastructure.

ChargePoint, Volta and EVgo shares traded down more than 25% in the past month. the


S&P 500

and


Dow Jones Industrial Average

are flat on the same staff.

Write to Al Root at [email protected]

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