The Biden administration is promoting electric vehicles (EVs) aggressively. From a $7.5 billion stipulation in the ‘Build Back Better’ bill to the political pressure on car manufacturers to commit to higher production with the objective of transforming 40% of auto sales to EVs by the close of this decade, it’s clear that the administration has the will to force a significant shift in the automotive sector under Biden’s leadership.
Let’s start in Europe, where Wallbox, based in Spain, is creating a name for itself in both the home-based charging niche and the commercial sector. The company wants to make charging solutions that are easy to use, smart, and user-friendly. The Pulsar home EV charging system, as well as many commercial, business, and semi-public systems, such as the Copper charger featuring the Commander featuring a touchscreen for the intuitive user interaction and a universal plug, are all available from Wallbox.
Since its inception in 2015, Wallbox has earned a reputation for excellence. The company has clients in 80 countries and announced solid sales growth for the third quarter and year to date in November. Quarterly sales were $22 million, up 250 percent year over year and accounting for 40 percent of the $55 million three-quarter total. Looking ahead, the firm anticipates achieving its revenue target of $79 million in 2021. By the conclusion of the third quarter, the company had sold over 66,000 chargers.
This was Wallbox’s first report as a publicly traded business. This year, Wallbox, like many other developing companies, took advantage of the strengthening market climate to engage in a SPAC transaction. In a deal announced in June, the charger company combined with Kensington Capital Acquisition Corporation II. On September 30, the SPAC’s shareholders authorized it, and on October 4, the WBX ticker debuted on the New York Stock Exchange. Wallbox received $252 million in the gross proceeds as a result of the transaction, and the merged company now has a market capitalization of $2.38 billion.
Wallbox has boldly not only created its manufacturing capability but also integrated much of the chip design and software development in-house, according to Baird analyst George Gianarikas. ” These procedures, according to management, have given them competitive advantages via product innovation and the ability to quickly deploy products.”
Rivian Automotive (RIVN)
EVs, which are built on technology in both hardware and software, has the potential to level the playing field, and new firms are vying for a piece of the pie. They offer a level of freedom that legacy automakers don’t have because they don’t have to invest money or capacity in gas-powered car models, allowing them to focus completely on EVs. Rivian is one of them, having been formed in 2009.
For the electric pickup trucks and SUVs, the business has created a “skateboard” platform. This car is developed on a simpler chassis with an integrated electric drive system that can be customized by adding different batteries, seating, bodies, and even wheel layouts to build new vehicles with a high degree of parts interchangeability. Both The R1T pickup as well as the R1S SUV are the two models currently in development by the business. They’re built on the same chassis and can drive on or off-road. In collaboration with Amazon, the business is also creating an electric delivery van.
Rivian has been successfully gathering funding for the development and production of large-scale vehicles for some time. Rivian acquired $2.65 billion during a funding round in January while still a private company, then followed that up with a $2.5 billion investment round in June. Amazon and Ford Motors were among the backers of all these investment rounds.