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What Is Going on With Atlis Motor Vehicles (AMV) Stock Today?

  • Atlis Motor Vehicles (AMV) tripled after its initial public offering, then did it again overnight.
  • Shares that opened at $27.50 were trading early on Sept. 28 at $250 each.
  • The company hopes to produce electric car batteries, then work trucks.
AMV stock - What Is Going on With Atlis Motor Vehicles (AMV) Stock Today?

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Atlis Motor Vehicles (NASDAQ:AMV), the small Arizona company that wants to make electric car batteries and, eventually, electric work trucks, is now a Wall Street star. Shares that first traded at $27.50 closed Sept. 27 at $82.12. AMV stock rocketed further overnight to $250 per share.

As we wrote at the opening, Atlis is a pre-revenue company that claims its battery design can recharge five times faster than others. The offering brought $33 million in private investment to the market. The market capitalization of Atlis was estimated early today to be $1.9 billion.

The Atlis Story

Atlis was founded in 2016 and began operations in 2018. Founder Mark Hanchett told InvestorPlace it has a 42,000 square foot facility in Mesa, Arizona, where it does battery production and research. The company’s financial statements indicated it spent about $11.1 million on operations in 2021 but issued stock to employees with a nominal 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 in June.  This was based on an average of 17.25 million shares outstanding during the quarter.

Managers need to issue more stock to fund operations. The company ended June with less than $650,000 in cash. Hanchett said the company’s plan is to begin with battery production this year, then start marketing its XT platform for work trucks in 2023. It has also developed a prototype charging handle and cable that can charge its batteries at 1.5 megawatts.

The company’s battery operations hope to take advantage of provisions in the Inflation Reduction Act providing incentives for companies that make batteries in the U.S.

What Happens Next for AMV Stock?

Hanchett and his team now have big decisions to make, but they need to act fast. They need to issue stock for operations and let some venture investors cash out. They also need to get production running and sign some sales contracts.

If they succeed, they could justify the company’s present valuation. If they can’t, Atlis could be another Magic Empire Global (NASDAQ:MEGL). The Hong Kong company is now trading at $4 per share after briefly hitting $117 near its August initial public offering.

On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.

Article printed from InvestorPlace Media, https://investorplace.com/2022/09/what-is-going-on-with-atlis-motor-vehicles-amv-stock-today/.

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