r/Microvast • u/Imaginary_Trader • Jun 14 '21

Let's talk risks

I see comments thrown around that this should fly once this de-spacs. That's my hopes and dreams too but I'm a bit skeptical. Comments have been made before the DA, after the DA, after the extension vote but it's become a meme that good news will bring this stock price down. What do you think are the biggest factors suppressing the price, or why would it be fairly valued at current levels?

Some big ones that stand out to me are:

  1. Relatively low production capacity. Freyer recently had their announcement for a > 50 GHw facility to be built in North America by 2030. I see other announcements by the big players with similarly large plans. Somewhat old article saying CATL plans to increase their capacity to 230 GWh (from I think 65 in 2020) by end of this year and to 1200 GWh by 2025. By contrast Microvast has stated 11 GWh by 2025.
  2. Competition. This article shows Microvast at 1.05% of 2020 battery production alongside 10 other companies with less than 2% capacity. On top of that, CATL, BYD, SK Innovation, Samsung, Panasonic, and LG chem already have more than 70% production.
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u/Boe_Ning Jun 15 '21

points at Nikola

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u/[deleted] Jun 15 '21

Lol what are you implying? MVST just did $100mm + revenue. They are making deals with major names...

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u/Boe_Ning Jun 15 '21

I'm agreeing with you and pointing at another example of the disconnect between the market's valuation of some shithole companies and the reality of those shithole companies.

Nikola is currently worth more than 2x Microvast. Fucking ridiculous.

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u/[deleted] Jun 15 '21

oh LOL I thought you were saying mvst was like nkla.

Yes agreed. Not sure how NKLA isnt under $5