Arizona-based Atlis Motor Vehicles (NASDAQ:AMV) is a truly unique clean-energy business. The company’s investors went on a rollercoaster ride after Atlis’ initial public offering (IPO). However, fearful traders should take a close look at Atlis Motor Vehicles’ product lineup. After assessing the risk-to-reward profile, you might actually end up buying a few shares of AMV stock.
Right now, you might be thinking that there are already enough electric vehicle (EV) startups out there. Who needs another one in an already competitive field?
That’s a valid concern, but hear me out. Despite the company’s name, Atlis Motor Vehicles doesn’t only focus on developing and producing full vehicles. As we’ll discover, Atlis’ business model is broader than you might expect, and prospective investors should find a host of reasons to consider an early stage stake.
What’s the Scoop With AMV Stock?
Let’s start at the beginning. Mark Hanchett founded Atlis Motor Vehicles in 2016, and the company began its operations in 2018. Atlis’ purpose for the IPO was to “continue to scale operations to produce state-of-the-art batteries, platforms and pickups needed to advance the work truck market,” according to Hanchett.
AMV stock started trading publicly on the Nasdaq exchange on Sept. 17. This IPO took place through a Registration A process, which brings private shares to the public market; Hanchett called the listing “an IPO lite.”
Yet, there was nothing “lite” about the post-IPO price action of the stock. As InvestorPlace contributor Dana Blankenhorn observed, Atlis shares that opened at $27.50 on Sept. 27 and closed at $82.12 on that day, and then rocketed to $250 early on Sept. 28.
Fast forward to the last day of September, and AMV stock was all the way down to $24. That’s right — the spectacular gains evaporated. It’s a painful lesson in the value of risk management — and the reason why I’m only encouraging traders to consider a very small position size.
Focus on Atlis’ Products, Not Its Financials
If you’re obsessed with top- and bottom-line figures like I am, then you might be bothered by Atlis Motor Vehicles’ recently filed Form 10-Q. To put it politely, the company is what you might call “pre-revenue.”
Okay, let’s just go ahead and say it: Atlis has no revenue and no earnings. This might be a deal-breaker for some folks, and I fully understand that. Yet, before you abandon AMV stock altogether, consider giving the company a closer look.
With 30 patent applications and a vertically integrated business model, Hanchett and Atlis Motor Vehicles clearly want to be a different kind of clean-energy business. By “vertically integrated,” I mean that company seeks to “own” the end-to-end business cycle, from production to sales, maintenance and much more.
The real selling point here, though, is Atlis’ products. There are three primary products in development or production. First, there’s the ATLIS Energy EV battery, which fully charges in just 15 minutes and has a “million-mile pack life.”
Next is the XP Platform, a plug-and-play skateboard-style EV platform containing four independently controlled electric motors. Finally, Atlis has the XP Pickup, a powerful electric truck featuring a 15-minute full-charge time, a 500-mile range and 35,000 pounds of towing capacity.
What You Can Do Now
Whether it’s trading at $24 or $250, AMV stock is impossible to take your eyes off of. It’s a fast mover for risk-tolerant investors — and it’s really only meant for tiny position sizes.
That said, feel free to explore Atlis Motor Vehicles’ audacious product lineup. Even a pre-revenue company like Atlis can disrupt an industry — and maybe create a new one for future-facing EV enthusiasts.
On the date of publication, David Moadel did not have (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.
