Atlis Motor Vehicles wants to expand development through investment
The production of electric cars is becoming more and more promising and profitable in terms of investment. This is evidenced by the increasing number of IPOs by electric vehicle manufacturers. Atlis Motor Vehicles is also planning to join its ranks, and its management has announced its intention to enter the stock market. This way it wants to raise funds for the development and expansion of business.
Interest in electric vehicles and their manufacturers is growing against the backdrop of the global transition to green energy sources to reduce carbon dioxide emissions.
Based in Arizona, Atlis Motor is developing an electric truck. According to the manufacturer’s plans, its vehicle can equal the payload characteristics of a traditional diesel-powered tractor. The Atlis truck can be used for work in the agricultural and construction industries.
The company’s management intends to trade the shares on the NASDAQ exchange, the securities will be presented under the ticker AMV. The funds, which will be obtained as a result of the IPO, will be used to expand the development units of trucks, as well as to increase the production capacity.
Despite the plans of Atlis, a number of experts are convinced that now are not the best conditions for the initial public offering on the stock exchange. The geopolitical conflict in Europe, which has affected the whole world, has a huge impact on global economic processes and makes investors act very cautiously. In addition, the issue of disrupted supply chains, which were broken during the pandemic and new waves of disease in China this year, remains unresolved.
The U.S. stock market has been in a kind of euphoria since the global lockdown. Investors were active, trying to get into promising sectors as quickly as possible. This led to a record number of IPOs last year. However, this year there is a decline in enthusiasm on the part of market participants.
In addition, excessive investor interest in the electric vehicle sector has diminished as a result of the negative experience with Rivian. This pickup truck manufacturer conducted an offering, which was accompanied by active support and covered by many specialized publications. As a result, Rivian was listed on the stock exchange in November 2021, and already in 6 months, the value of the securities fell to 3 times the level of indicators at the beginning of sales. This situation has forced many investors to be cautious about representatives of the electric car industry, and some of them decided to focus on other sectors for now.
Analyzing all these factors, it is difficult to say how successful Atlis Motor’s listing will be, and many experts agree that the developer should not hurry with such a serious step.