Is the ASX about to welcome 2 Electric Vehicle Investment Opportunities to the bourse?

Electric Vehicle Investment Opportunities are few and far between on the ASX. Last week, we wrote that there were only 2 ASX electric vehicle stocks for investors to look at. And while that statement is still true, it may not be for much longer. The ASX could be about to welcome another couple of companies.

2 Potential Electric Vehicle Investment Opportunities

Janus Electric

After a decade or so in the hydrogen and renewable energy spaces, Renu Energy is pivoting to electric vehicles, unveiling a reverse takeover deal from Janus Electric. ReNu will take over Janus and change its name and ASX code, raising $8-10m in the process. Janus is focused on offering swappable battery solutions for heavy duty Class-8 trucks.

Its solution promises that battery swaps can be done in 4 minutes, then deliver cost savings of up to $0.20/km and a payback in as little as 8 months. Renu has told investors that there are over 120,000 ‘registered prime movers’ that could serve as a market. The solution can help customers comply with new climate reporting requirements.

Already, the solution has converted 23 trucks – including trucks belonging to Adbri, Qube, Cement Australia and JJ Richards – which have demonstrated 319,310kms travelled. Binding Purchase Agreements for a further 142 truck conversions.

This is hardly a novel idea – companies like Tesla, Volvo and NYD offer it too, but they take longer to charge, have a higher upfront cost and a lower kilometre range. It operates as a subscription model with recurring revenues, consisting of one-off conversion fees and then ongoing battery hire, electricity and usage fees.

Go Zero

Go Zero is the largest electric bus supplier to the NSW Government. The AFR has reported that hydrogen startup United H2 has agreed to buy it for $400m and that two brokers (Morgans and MA Australia) have been appointed for an IPO. UHL will apparently be listed in its own right on the NASDAQ.

Go Zero purports to be Australia’s number one integrated zero emission transport solution provider, boasting both public and private sector customers. These include Sydney Airport, Ugo mobility, Woolworths, Mainfreight and the NSW Government. Its passenger can carry up to 57 passengers and have ranges of several hundred kilometres, although the exact capacities vary dependant on the model. Their lower energy use and reduced maintenance will mean that such buses have a lower cost of ownership over their lifetimes compared to their diesel equivalents.

The company also boasts industrial vehicles and charging infrastructure, sold under the brand Nexport. Their charging stations can either be in-ground or be placed on top of a gantry (i.e. the roof of a bus terminal and be applied from a bus’ ceiling).

So should I invest in them?

We’ll reserve judgement on them, particularly the latter. There’s no doubt that electric vehicles are the way of the future. But that doesn’t mean small caps on the ASX will benefit in the way that IPG Group (ASX:IPD) and Genus Plus (ASX:GNP) are, and even those two companies are repairers and providers of utilities infrastructure first and foremost. They have recorded slow, steady and consistent growth rather than rapid growth that many impatient investors may expect.

We’d be particularly concerned if GoZero’s buyers would be trying to sell it 6-9 months after buying it – so many IPOs fail when private equitors or other buyers sell to retail investors who buy out of FOMO, and it can take just one proepstcus miss to condemn the company to the stock market doldrums for years.

Investors should do their due diligence before investing in any companies mentioned in this article – if they even get the chance to.

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