Hyliion Holdings Stock – Why You Need to Look at HYLN Before 2022
As oil prices are surging while I write this, electric options are looking more attractive. One electric solutions maker, Hyliion Holdings (NYSE HYLN), has built a business around the advancement of clean energy. Not only is it in the EV industry, but it makes electric trucking solutions. However, Hyliion Holdings stock is currently down over 75% since becoming publicly traded.
As a leader in large truck electric solutions, the company can play a pivotal role as the industry transitions to cleaner energy.
Transportation costs are skyrocketing, causing some companies to pay 10X more than usual. And in return, these expenses are getting passed down. This makes everything more expensive, from food to electronics.
Will the company’s electric parts be able to help reduce some of these costs? And will Hyliion Holdings stock bounce back?
Let’s take a closer look into the company to see how they plan on delivering…
Why You Should Consider Hyliion Holdings Stock
Although the company is still young, it’s making a name in the EV industry. Hyliion is a supplier of electric energy sources that power commercial vehicles. In other words, it helps power shipping trucks with alternative energy rather than gas.
The company is focusing on renewable energy efforts to reduce greenhouse gas emissions in the trucking industry. In fact, transportation is the highest producer of these gases for all U.S. sectors.
With that being said, Hyliion Holdings is creating two electric power solutions, that should help Hyliion Holdings stock growth. These include:
- It’s Hybrid System and,
- Hypertruck ERX system
The company’s hybrid system is being rolled out, while the ERX system is in its final stages of development. Additionally, the ERX system will use tech from its hybrid model.
New & Improved Hybrid Powertrain Solution
Hyliion Holdings is releasing an upgraded version of its hybrid called “Hybrid eX.” The company decided to give the system an upgrade and boost its abilities. Furthermore, the new model has several improvements.
- A Simpler design, making it easier to produce
- Lighter weight, allowing for more capacity
- New software, improving connectivity
- An enhanced driver experience
- And improved security
The advancements come at a crucial time as the company plans on shipping units later this year. CEO Thomas Healy says, “We expect these improvements to make the Hybrid that much easier for fleets to adopt.” The news can be big for Hyliion Holdings stock investors as the revenue will soon show in the company’s earnings.
Recruiting Veteran Talent
In other news, Hyliion Holdings is recruiting seasoned experts to help guide it through a challenging industry. In the past month, the company has named three veteran leaders to lead the company.
Dennis M Gallagher
Dennis was elected CEO of Hyliion Holdings on August 16th. Mr. Gallagher most recently served as president of Jacob Vehicle Systems. In his new role, he will focus on getting the company’s products to market.
Elaine Chao
Elaine is joining the board of directors. She is the former U.S Secretary of Transportation and Secretary of Labor, bringing a wealth of knowledge with her.
Mary Gustanski
Mary is also joining the board. She has over 40 years of experience in auto innovations. From her experience at Delphi Technologies, she can play a vital role as the company moves forward.
Hyliion Holdings Stock – Progress on the Hypertruck ERX System
In the company’s second-quarter financial release, the company says it’s “on track” with its timeline. So far, the company has 300 reservations from Detmar Logistics. The schedule is as follows.
- Late 2021 – Trial truck demonstrations.
- Throughout 2022 – Testing and assessments.
- Late 2022 – Commercial availability.
As long as everything goes according to plan, we should see Hyliion-powered trucks by the end of next year.
The company is also releasing an alternative that offers long range capabilities. The 75-mile range qualifies for the Zero Emission Vehicle (ZEV) sales credits. The news comes as California’s new ACT rule requires large truck makers to sell credits to promote clean air efforts.
Hyliion Holdings Stock Forecast – Can HYLN Stock Bounce Back
With Hyliion Holdings stock down over 75% since going public, investors are wondering if it will recover. All things considered, if Hyliion Holdings can stay on schedule, they should start seeing revenue in early 2022.
Keep in mind, a big part of the company’s success will depend on the trucking industry’s willingness to convert. But, incentives like California’s ACT credit should help speed things up.
Another thing to consider is how the company came to the market. SPACs, in general, have underperformed as investors are looking for safer investments. With that said, the poor performance is partly due to the SECs new regulations.
All in all, Hyliion Holdings stock is at the lowest price it’s been since becoming a publicly-traded company. When looking at its price targets suggesting 60% upside, it seems like a good value. Yet, these targets are based on the company’s ability to meet its goals.
Given the global supply chain issues, it will be a challenge. But, with the company at a critical point, it could offer a surprise.
We all know what happened with Nikola, another electric truck provider. For those that don’t, the story shows the risks that come with investing in companies promising high growth. Still, in Hyliion’s case, the new talent shows the company is serious about its mission.
For more information on Hyliion Holdings stock, electric vehicles and more, sign up for Profit Trends. Energy Expert, Dave Fessler has his finger on the pulse of the EV market. Sign up today and start profiting from the latest energy trends.
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.