Grupo ACS’ Post

The story of Tritium® - whose market cap has fallen 98% from ~USD$1.5 billion when it was listed on the Nasdaq in May 2021 to only USD$37 million today - epitomises the bubble effect of ultra-low interest rates, and the value different governments place on the renewable energy vote. I can't really tell whether Tritium is well run, but a quick look at the largest EV charging companies in the U.S. reveals a sector that's gone from zero to hero back to zero in correlation with low interest rates and pandemic QE. One of the best performers is EVgo, which has 'only' dropped 72% since it was listed in 2020, and retains a market cap of over USD$800 million. Others haven't been so 'lucky', with Naas Technology's share price dropping 99.5% from over USD$400 to only USD$$2.20, leaving a market cap of only USD$480 million. Being in the SaaS space, I wasn't watching this sector during the pandemic, but it turns out that it basically went to the moon and back. The really interesting thing I find about this sector is the way different governments are reacting to its plight. If you make the assumption that moving away from fossil fuels is a good thing for the world and humanity, then electrification is fundamental to achieving this goal. So we need to build heaps of charging stations. Australia currently has only ~3,000 EV chargers, equating to 1 per 8,563 people - it's such hard going that Tritium long ago gave up on the Australian market. By comparison, America currently has ~60,000 EV chargers, equating to 1 per 5,532 people. The Australian and Queensland government loved publicly high fiving the success of Tritium around the world, noting how it had created 200 jobs and brought manufacturing back to Australia. Yet now the company is on its knees it's been unwilling to assist in any meaningful way, with the company now closing its Australian factory. The Queensland government is happy to cover any unpaid super, and was happy to throw ~AUD$1 billion at random businesses during COVID, but didn't won't even consider a relatively small loan to Tritium in its darkest hour. Clearly no votes there. And in their defence, many have criticised Tritium's strategy over the past couple of years with a negative gross margin. The Australian government is establishing a $15 billion National Reconstruction Fund, but it seems Tritium's woes don't justify accelerating this process. In comparison, on November 15, 2021 the U.S. enacted the Infrastructure Investment and Jobs Act, which which provides $7.5 billion for an additional 500,000 EV chargers across America. At some stage Australia, and its leaders, need to work out what we want as a country for our future. It's so easy to jump on the propaganda vote-grabbing bandwagon, but ultimately $$$ do the talking, and Australia continues to place little value on a future that doesn't rely heavily on coal and petrol. https://lnkd.in/gFVkrgd7

The story of Tritium® - whose market cap has fallen 98% from ~USD$1.5 billion when it was listed on the Nasdaq in May 2021 to only USD$37 million today - epitomises the bubble effect of ultra-low interest rates, and the value different governments place on the renewable energy vote. I can't really tell whether Tritium is well run, but a quick look at the largest EV charging companies in the U.S. reveals a sector that's gone from zero to hero back to zero in correlation with low interest rates and pandemic QE. One of the best performers is EVgo, which has 'only' dropped 72% since it was listed in 2020, and retains a market cap of over USD$800 million. Others haven't been so 'lucky', with Naas Technology's share price dropping 99.5% from over USD$400 to only USD$$2.20, leaving a market cap of only USD$480 million. Being in the SaaS space, I wasn't watching this sector during the pandemic, but it turns out that it basically went to the moon and back. The really interesting thing I find about this sector is the way different governments are reacting to its plight. If you make the assumption that moving away from fossil fuels is a good thing for the world and humanity, then electrification is fundamental to achieving this goal. So we need to build heaps of charging stations. Australia currently has only ~3,000 EV chargers, equating to 1 per 8,563 people - it's such hard going that Tritium long ago gave up on the Australian market. By comparison, America currently has ~60,000 EV chargers, equating to 1 per 5,532 people. The Australian and Queensland government loved publicly high fiving the success of Tritium around the world, noting how it had created 200 jobs and brought manufacturing back to Australia. Yet now the company is on its knees it's been unwilling to assist in any meaningful way, with the company now closing its Australian factory. The Queensland government is happy to cover any unpaid super, and was happy to throw ~AUD$1 billion at random businesses during COVID, but didn't won't even consider a relatively small loan to Tritium in its darkest hour. Clearly no votes there. And in their defence, many have criticised Tritium's strategy over the past couple of years with a negative gross margin. The Australian government is establishing a $15 billion National Reconstruction Fund, but it seems Tritium's woes don't justify accelerating this process. In comparison, on November 15, 2021 the U.S. enacted the Infrastructure Investment and Jobs Act, which which provides $7.5 billion for an additional 500,000 EV chargers across America. At some stage Australia, and its leaders, need to work out what we want as a country for our future. It's so easy to jump on the propaganda vote-grabbing bandwagon, but ultimately $$$ do the talking, and Australia continues to place little value on a future that doesn't rely heavily on coal and petrol. https://lnkd.in/gFVkrgd7

Join us on 14-15 September in Amsterdam for the IPE Real Assets & Infrastructure Global Investor Conference & Awards. One of the main discussion points will centre on how investors participate in the global transition to clean energy. We will also debate how investors can navigate a myriad of risks and opportunities, not least Europe’s energy and cost-of-living crises, net-zero targets, regulation and political intervention, and technological advancements. Kicking off this discussion is keynote speaker Luba Nikulina, Chief Strategy Officer, IFM Investors followed by a panel session with: ▪️ Sofia Bartholdy, Net Zero Lead, Church Commissioners for England ▪️ Dario Bertagna, Managing Director, Co-Head of Clean Energy, Capital Dynamics ▪️ Glen Matsumoto, Partner and Head of Infrastructure, Actis ▪️ Matthew Mendes, Head of Infrastructure, Investment Management Corporation of Ontario (IMCO) ▪️ Umberto Tamburrino , Chief Executive Officer, Sosteneo SGR Albena Vassileva, Executive Director, Infrastructure, IFM Investors will moderate this session. To view the programme and secure your place today, visit: https://lnkd.in/e8KiHDgG #IPERealAssets #EnergyTransition #Digitalisation #Transport #NaturalCapital #Infrastructure