Atlis motor vehicles (NASDAQ:AMV), the small Arizona company that wants to make batteries for electric cars and eventually electric work trucks, is now a star on Wall Street. The shares that first traded at $27.50 closed Sept. 27 at $82.12. AMV stock exploded again overnight to $250 per share.
As we wrote at the opening, Atlis is a pre-revenue company that claims its battery design can charge five times faster than others. The offering brought $33 million in private investment to the market. Atlis’ market capitalization was estimated early today at $1.9 billion.
The Atlis story
Atlis was founded in 2016 and began operations in 2018. Founder Mark Hanchett said InvestorPlace it has a 42,000 square foot facility in Mesa, Arizona where it produces and researches batteries. The company’s financial statements said it spent about $11.1 million on operations in 2021, but issued stock to employees with a face value of $123 million.
In a filing dated the same day as the IPO, Atlis reported a loss of $37 million, or $2.14 per share, for the six months ending June. This was based on an average of 17.25 million shares outstanding during the quarter.
Managers need to issue more shares to fund operations. The company ended June with less than $650,000 in cash. Hanchett said the company’s plan is to start battery production this year and then begin marketing its XT platform for work trucks in 2023. It also developed a prototype charging handle and of cable that can charge its batteries at 1.5 megawatts.
The company’s battery operations hope to take advantage of provisions of the Cut Inflation Act offering incentives to companies that manufacture batteries in the United States.
What happens next for AMV Stock?
Hanchett and his team now have big decisions to make, but they need to act quickly. They have to issue shares for operations and let some venture capitalists cash in. They must also launch production and sign sales contracts.
If successful, they could justify the company’s current valuation. If they can’t, Atlis could be another Worldwide magic empire (NASDAQ:DELG). The Hong Kong company now trades at $4 per share after briefly hitting $117 near its IPO in August.
As of the date of publication, Dana Blankenhorn does not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.