Another electric truck startup, Hyliion, is looking to go public following merger with a so-called blank check company, to join the major players in the EV market
It is looking like another imminent disruption in the EV market as Hyliion has announced plans to merge with Tortoise Acquisition (SHLL). Hyliion is popular as a maker of commercial hybrid-electric and all-electric trucks. The merger with Tortoise Acquisitionis expected to close in the third quarter with an implied a value of more than $1.5 billion for Hyliion. The deal will also give birth to Hyliion Holdings, with the new company traded under the ticker “HYLN.”
The Austin-based Hyliion was founded in 2015, with the company’s lineup including the popular ERX semi-truck. Sources have it that Hyliion has predicted its sales to reach $344 million in 2022 and over $2 billion by 2024. Hyliion and the new company are not the only ones looking to introduce electric trucks to the market. However, the company’s innovation will stun the market, considering the amazing features and benefits that users of the vehicles tend to enjoy.
Electric Truck Stocks
Stocks of several manufacturers of electric trucks have had a mixed experience in recent times, with the shares of Tortoise Acquisition shooting up 41% to close at 24.57 on the stock market today. This is following the announcement of a merger of Hyliion and Tortoise on June 19.
Tortoise was formed about 15 months ago as a “blank check” or special purpose acquisition company. The company assessed about 200 companies before settling for Hyliion for its “market-disruptive” business plan.
The CEO of Hyliion, Thomas Healy, recently spoke about the strategies that the company is adopting to compete effectively in the market. “While we are focusing on the powertrain, we are not trying to reinvent the entire truck. The approach that Tesla and Nikola are taking is that they are not only reinventing the powertrains, but they are building their full vehicles from the ground up. And so with our approach, there are less barriers and hurdles that we need to overcome,” said Healy. “What we have done is take more of the approach that Cummins has taken with the industry, which is to stay focused on the powertrain and then supply those powertrains to all the existing OEMs,” Healy continued.
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