Company Website: Link
Recently, Exro participated in a discussion with a well-known You-Tuber Sandy Munro. We are new to Sandy’s podcast, but he has amassed a sizable following of over 400K subscribers. Sandy’s channel, Munro Live, is known for reverse engineering products with a particular focus on all things related to Electric Vehicles.
The Munro Live YouTube channel can be found here (https://www.youtube.com/@MunroLive/videos ) and admittedly we went down a rabbit hole watching a number of videos to upgrade our knowledge of EV’s and batteries. Impressively, he recently did a two-part interview with Elon Musk, which further adds to his credibility as an subject matter expert.
Sue Ozdemir (CEO) and Eric Hustedt (CTO) from Exro participated in a discussion with Sandy Munro on his YouTube podcast channel, where the three of them delved into the deeper technical aspects of Exro’s Cell Driver and Coil Driver. (Link)
We found the interview very informative as Sandy asked Exro management a variety of questions leaning far more towards the engineering and science aspects Exro’s technology than we have seen management presented with in the past. Much of the discussion was admittedly a bit ahead of our understanding, but is definitely worth a listen for investors.
Interestingly, Sandy Munro was also part of an EV Technology Panel recently where he further highlighted the Exro potential. Video (Link 2:56:30 mark). Sandy mentions company he met with that is a game-changer, which we are highly confident to be Exro. Unfortunately during the live-stream he couldn’t recall Exro’s name, but it does appear he was impressed by what he heard about the company’s technology with his interview with Exro management.
Management Technical Insight Impressed
New and disruptive technologies are often times difficult for investors to ‘suss out’ for credibility and applicability. We view these comments by Sandy Munro, who is clearly a respected expert withing the EV arena, as providing some independent verification that Exro’s Cell Driver as a game changing technology that EV manufacturers would be interested in. Sandy himself indicates that he originally viewed Exro’s technology as being ‘magic’ but appears to be a believer in the applicability of the Cell Driver technology in EVs.
It was also clear to us in the video that both Sue Ozdemir and Eric Hustedt could speak intelligently to the technical aspects of their business. Again, we see this as important for existing and potential investors. Quality of management is always an important investment criterion. Even institutional investors likely don’t have the expertise to ask probing technical questions to management teams, and often times they will sit on the fence instead of putting investment money to work because they don’t understand the solution the technology is providing. We feel this interview shows Exro management clearly can communicate with industry experts on the science, market and economics of the Cell Driver technology.
Early this year, we laid out a checklist of catalysts for Exro that we believed investors should monitor for progress. This is presented below. From our perspective, the most important accomplishment for the company was achieving commercial production at its Calgary, Alberta manufacturing facility. This will allow the company to begin to deliver on Revenue, and ultimately EBITDA, growth looking into 2024 and beyond. We believe this is a critical step in order to attract institutional investors to the story.
Overall, Exro hit on the key objectives for the year. We expect a couple of check marks are likely warranted in short order:
For all intents and purposes, Exro has achieved commercial revenue from its Coil Driver, we expect this to be confirmed with YE results early in 2024.
We believe ongoing validation with Linamar and Wolong is proceeding largely on track.
The company indicates that its Cell Driver UL Certification in imminent, if not by year-end, then very early 2024.
Exro has been unable to disclose some key partners that remain under NDA. However, this is beginning to change as the company ramps up production. The company recently clarified its Brazilian partner as Giaffone Electric.
We believe a NASDAQ uplist will likely be evaluated once there is further clarity on long-term purchase agreements for both the Cell Driver and Coil Driver.
As we have noted in prior posts, it appears that Exro’s share price has been pulled down by broad negative sentiment towards EV rate of growth. Additionally, tax loss selling looks to have further weighed on share price in recent weeks. That said, the company continues to hit key deliverables and we expect further news flow over coming months on progress for commercial orders for both the Coil and Cell Drivers.
Comments
Nothing yet. Say the first thing.
Sign in to join the conversation.