Thursday was Earth Day. It was also Day One of Joe Biden’s two-day virtual climate summit involving leaders from around the world. Biden’s objectives for the event became strikingly clear: The US is back at the table, battling climate change and being a good-faith actor on sustainability, and we are prepared to prove it.
Among the 40 heads of state gathered for the event (virtually), sentiment, as reported across news coverage of the event, suggests the US will have to do more than just make bold proclamations. Follow-through will be key to restoring global faith in the US as a leader in the fight against climate change.
This forms a strong foundation for equities powered by top-down regulatory and subsidy tailwinds rooted in sustainable energy and similar technologies.
One group that continues to sit at the center of this thematic universe is the electric vehicle space.
While stocks in this group have been pulling back sharply over the past 3 months, the secular fundamental opportunity they represent is undeniable, and the correction that has played out this year may be an opportunity to take a fresh look at stocks such as Tesla Inc (NASDAQ:TSLA), Workhorse Group Inc (NASDAQ:WKHS), FuelCell Energy Inc (NASDAQ:FCEL), Plug Power Inc (NASDAQ:PLUG), Nio Inc – ADR (NYSE:NIO), and Blink Charging Co (NASDAQ:BLNK).
Every stock on that list has been red-hot at some point over the past year and has dropped significantly over the past three months. Many are at key long-term technical support levels as well.
Now that we are climbing toward the hump of Q1 earnings season, don’t be surprised to see some bids return to the group, especially as attention centers on environmental sustainability with Day Two of Biden’s climate summit in play to close out the week.
One name not in the list above, but one that may deserve attention as a more speculative, lower-priced EV play is KULR Technology Group Inc (OTCMKTS:KULR).
The company is rooted in a 30-year history tied to carbon fiber thermal energy management technology for aerospace and defense applications. Its technology is trusted by NASA, with KULR parts on the Mars Rover 2020 Perseverance and the International Space Station.
According to KULR CEO, Michael Mo, its mission now is to take these space proven technologies to make the world of lithium batteries and electronics cooler, lighter, and safer.
In other words, KULR is basically a hedge for Lithium battery technology by removing downside risk for EV manufacturers through beneficially shifting the probability of negative battery events.
Saturday’s incident – where two men died in Texas after a Tesla crashed, triggering a battery fire that apparently reignited multiple times after being extinguished – underscored the continued risks presented by a wholehearted shift to EVs on a society-wide basis over coming years.
The story is just one of many that point to the need for further advances in safety systems for EV battery technology, where KULR may have an IP advantage already in place.
In a podcast released this week, Mo was asked about the advantages for KULR of having the Biden administration in power, and the related efforts to increase the use of electric vehicles moving forward.
“It is a very ambitious plan to bring the green energy jobs back to the US,” said Mo. “Electrification is going to be the future of this green economy, and battery storage is a critical part of that. We focus on the safety side of battery storage. There has been a massive amount of risk involved in these large energy storage projects. We have a battery safety technology that we developed with NASA in 2015, which is on the International Space Station to keep the electric laptop batteries safe. We are working with both commercial entities, as well as government regulatory bodies to commercialize this technology.”
Asked when Mo believes commercialization will come to fruition and revenues will start to flow to the balance sheet, he replied, “Some of the commercialization is already taking place, and you should continue to see revenue ramp up throughout 2020 and 2021. The expectation is that when our revenue run rate gets to about ten million dollars, we will be able to start giving a more definite forecast. Before that I think we will just remain focused on growing the top-line as quickly as possible.”
On the company’s partnership with Andretti Technologies, Mo noted, “We’re really thrilled about our partnership with the Andretti’s. Michael Andretti’s organization is one of the most famous names in auto sports in the US. KULR became the official thermal management and battery safety technology partner for Andretti Technologies. The mission of the partnership is to establish a thermal management testing design platform for high-performance battery solutions with the highest safety ratings.”
DISCLAIMER: EDM Media LLC (EDM), is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. EDM is NOT affiliated in any manner with any company mentioned herein. EDM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. EDM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. EDM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed EDM has been compensated three thousand dollars for news coverage of the current press releases issued by KULR Technology Group Inc (OTCMKTS:KULR). by a third party.
EDM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and EDM undertakes no obligation to update such statements.
EDM Media LLC