For folks who bought shares of electric-truck powertrain and battery manufacturer Hyliion (NYSE:HYLN) late last year, the prevailing sentiment today might be disappointment. Starting in September, any hope that HYLN stock would quickly jumpfive times or ten times was promptly quashed.
Still, there’s reason to believe that Hyliion will remain a vital player in the vehicle-electrification market. Importantly, Hyliion Chief Technology Officer Patrick Sexton identified three paths to the electrification of trucks: the electric grid, hydrogen fuel cells and renewable natural gas.
I think it’s fair to say that Hyliion already planted its flag in the area of renewable natural gas when the company partnered with American Natural Gas in October.
Along with Sexton’s three paths, I would add a fourth one: next-generation battery technology. As we’ll see, Hyliion is staking its claim in that area as well, and it could be the key to a major turnaround for the company and its stakeholders.
A Closer Look at HYLN Stock
Just to give you a quick refresher, Hyliion went public through a merger with Tortoise Acquisition Corp. in October. And, as you’ve probably seen with other special purpose acquisition company (SPAC) stocks, the original share price was around $10.
The summer of 2020 was a special time for the owners of HYLN stock. That’s when the share price jumped from $10 to more than $30 within a couple of weeks.
The momentum continued beyond the summer as HYLN stock shot up to a 52-week high of $58.66 on Sept. 2, during the peak of electric vehicle SPAC stock mania.
Unfortunately, the euphoria wasn’t meant to last forever, or even through the end of 2020. As it turned out, HYLN stock finished the year at $16 and change.
Yesterday HYLN stock settled at $16.81. Long-term investors should consider the big picture – and that picture involves a battery that’s poised to be a game changer.
A Wake-Up Call
InvestorPlace contributor Luke Lango suggested that Hyliion’s recent announcement concerning a new battery module “could be exactly what Hyliion’s sleepy stock needs to ‘wake up’ and rebound back to $50-plus highs.”
That’s an ambitious call, but I feel that it’s justified. Indeed, I think that this new product line is precisely what bored Hyliion shareholders need right now.
Hyliion was always known for developing electrified powertrain solutions for Class 8 commercial vehicles. That was exciting in mid-2020, but the market wants to see something new from Hyliion.
Fortunately, the company is delivering a fresh product offering in the form of a next-generation battery module that provides both longer battery life and faster charging.
Check the Specs
To truly appreciate Hyliion’s innovation in battery technology, let’s drill down on the module’s specifications:
- Capable of up to five times as much cycle life than a conventional electric vehicle battery
- Can be recharged in under eight minutes
- Integrates Toshiba’s (OTCMKTS:TOSYY) LTO cells with Hyliion’s technology advancements
- Improved heat dissipation for longer sustained power output
- Allows for more than a 40% improvement in cooling compared to the previous battery system
- Reduces the operating temperature of the cells for greater safety
- Already passed UN 38.3 battery testing procedures
According to Hyliion’s press release on the topic, the company plans to incorporate the new battery module into the next version of Hyliion’s Hybrid system.
Thomas Healy, the founder and CEO of Hyliion, underscored the significance of this development, calling the new battery module “a key milestone in the Hybrid commercialization process, further strengthening our overall technology platform as we innovate future solutions.”
The Bottom Line
Given the introduction of Hyliion’s new battery module, Lango’s call for HYLN stock to reach $50 or higher is not unrealistic.
It might take a while to get there, but Hyliion’s innovation should be widely recognized sooner or later.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.