CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

SPI Energy (SPI) unit Phoenix Motorcars raising $150m via IPO

By Kevin Donovan

15:21, 29 November 2021

Phoenix Motorcars EV truck
SPI Energy shares traded higher Monday, up 5.28% to $5.58 from Friday’s $5.30 early market closing price – Photo: Phoenix Motorcars

SPI Energy subsidiary Phoenix Motorcars plans to raise $150m (£112m) through an offering of shares to the public, according to records filed with the US Securities and Exchange Commission.

Santa Clara, California-based SPI Energy subsidiary EdisonFuture will retain 70 million shares in the new company, the S-1 shelf registration reports. SPI Energy, which acquired Phoenix on 12 November 2020, received board approval to spin-off Phoenix Motorcars on 27 January 2021. Neither the specific number of shares offered, nor any indicative price guidance was disclosed.

Maxim Group and Roth Capital are acting as joint bookrunners for the offering, with EF Hutton as co-lead manager. A yet-to-be-determined number of shares will be allocated for the underwriting group to purchase up to 45 days after closing. Phoenix has applied to the Nasdaq exchange under the ticker PEV.

Maxim issues report

Joint-book Maxim issued a research report Monday based on Phoenix Motorcar’s previously unknown financial disclosures, reiterating its ‘Buy’ rating on SPI Energy stock with a $12 one-year price target. Citing the 96 vehicles Phoenix has delivered to date, Maxim estimates Phoenix has contributed 1.8% of SPIs first-half 2021 revenue and estimates $304m full-year 2022 revenue.

“We incorporate a higher multiple into our price target as we believe SPI’s renewable energy businesses can benefit from more government spending along with more consumers using clean energy products, including solar panels, batteries, and EVs,” Maxim analysts stated.

SPI Energy shares traded higher Monday, up 5.28% to $5.58 from Friday’s $5.30 early market closing price. SPI Energy shares trade over the Nasdaq exchange under the ticker SPI.

Executive options

Phoenix chair Xiaofeng Peng is being granted 4.2 million stock options at a $0.43 per share strike price which expire on 24 January 2028. An additional 2.25 million unearned incentive options, also at a $0.43 strike price, are being split between CEO Joe Mitchell, COO Tarek Helou, CTO Ron Iacobelli and CFO Wenbing Chris Wang, all exercisable into 2031.

Phoenix lost $6.37m, or $0.09 per share, on $1.68m in revenue in the nine months ending 30 September, versus a $3.29m loss on $3.80m in revenue for the comparable period in 2020. For the full year of 2019, Phoenix Motorcars lost $5.97m on $3.99m in revenue.

US100

16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

BTC/USD

39,624.00 Price
+0.140% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

XRP/USD

0.63 Price
-0.100% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040

Company history

Founded in 2003, Anaheim, California-based Phoenix Motorcars launched its first electric vehicle (EV), a commercial shuttle built on a Ford E-450 chassis, in 2013.

Phoenix Motorcars manufactures mid-sized EV pickup trucks to consumers, as well as commercial EV trucks and busses. Additionally, Phoenix manufactures charging stations and EV conversion kits to third-party manufacturers or entities seeking to electrify their current vehicle fleets.

For example, having launched production of its e-drive system in the second quarter of 2021, Phoenix currently has a backorder of 41 complete vehicles and 25 drive systems, as well as 25 EV chargers, representing roughly $10m in revenue. Phoenix expects to fulfil its order backlog in the first quarter of 2022.

Product pipeline

Phoenix is currently developing a new electric drivetrain, which it intends to launch in 2022. Also in the development stage is an EF1-T e-pickup truck, first in a line of all-electric pickup trucks and last-mile delivery vans, with a marketing launch scheduled for 2022.

In addition, the company is currently a subcontractor for a fulfillment order between shuttlebus manufacturer EasyMile and the Metropolitan Transit Authority of Harris County, Texas, to manufacture an all-electric Level 4 autonomous cutaway shuttle bus.

Phoenix has two lines of EV charging stations, Level 2 and DC Fast Charging, for residential and commercial use.

Furthermore, Phoenix has a design patent pending with the US Patent and Trademark Office for a retractable solar panel roof product. 

Read more: EV stocks are getting a boost from Washington

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading