Shares of Hyliion (NYSE:HYLN) are up almost 40% at the time of writing after a key announcement. A next-generation battery module was released, to the cheer of investors. This stoked interest once again in this previous high-flying stock.
Importantly, investors may remember that HYLN stock has actually traded in the high-$50-per-share range before this sector saw a large selloff after the recent Nikola (NASDAQ:NKLA) news.
Hyliion came public via a SPAC, and this recent product announcement appears to have intrigued a significant number of early stage investors. Let’s take a look at what this new technology is, and why it matters.
New Battery Module Appears Worth the Hype
Sometimes, products are released that are so superior to what currently exists, it is hard not to get excited. I think that’s the case right now for HYLN stock.
Currently, Hyliion is an industry leader in providing hybrid powertrain solutions. These systems help to improve fuel efficiency and reduce greenhouse gas emissions from existing Class 8 vehicles. Indeed, the company’s current technology is industry-leading. Many investors like the fact that this is a well-established company with existing sales. Additionally, the company’s recently released battery module appears to be worth the hype.
The company’s newest battery design features a number of improvements that should be key. I think these product improvements make Hyliion’s product one of the best in class, and provide a near-term moat for investors concerned about the heightened competition in this space:
- Improved battery life and charging rates
- Safety improvements linked to advanced cooling technology and improved design
- Leading Toshiba LTO battery cells used in the redesigned battery
- Module will be included in the next-generation Hyliion hybrid systems
What Does This Mean for HYLN Stock Investors?
Right now, the EV transition is underway, and investors are looking to put their money in companies with the strongest long-term secular tailwinds. Companies like Hyliion provide transitional technologies that take us from the present to the future, with the greatest flexibility for its large-cap customers. Indeed, the transition toward a fully electrified future will take time, and HYLN stock and its peers are ready to bridge the gap.
I think product improvements on these hybrid technologies are worth the media attention they’re getting right now. President Joe Biden has a strong and clear climate agenda. Companies like Hyliion will be looked to as key innovators needed to make these goals a reality.
Hyliion does have a significant amount of competition in the hybrid powertrain business. Electrification is booming, and is a secular trend everyone is jumping on right now. Thus, Hyliion’s investments in product improvements differentiate this company from its peers and highlight the innovation this company brings to the table.
Disclosure: On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
