What’s The Deal With Hyzon Motors?
As Great Stuff Picks readers already know, Hyzon Motors is set to go public via a SPAC merger with Decarbonization Plus (Nasdaq: DCRB) in the second quarter of 2021
While Hyzon Motors has yet to announce the exact merger date, it’s important to note that we are currently in the second quarter of 2021. In fact, we are in the second month of the second quarter of 2021.
I’m betting that the merger will go through this month, with Hyzon Motors trading on the Nasdaq under the reported ticker symbol HYZN.
Why? Because Hyzon has said that it expects to be listed in late May or early June.
In other words, you have very little time left to buy DCRB before this stock skyrockets — and I mean skyrockets.
Right now, DCRB trades with a market capitalization of just $286.16 million. Hyzon’s SPAC deal values the combined company at roughly $2.7 billion. That means that DCRB is currently valued at one-tenth of its potential market capitalization post-merger.
That also means that Hyzon Motors could — and I stress could, because the market is screwy this year with growth stock valuations — trade as high as $80 to $100 per share.
On Friday, DCRB closed below $11 per share. See what I mean by skyrocket now?
But, you might think:
- Why would anyone buy this … SPAC?
- What is the deal with Hyzon Motors?
Luckily for you, I have answers. They don’t call me Mr. Great Stuff for nothing, you know.
It’s The DCRB’s Knees
First, why would anyone buy DCRB stock?
I mean, did you see the difference in pre-merger and post-merger valuations? If the potential for a possible 700% gain doesn’t excite you, I don’t know how to help.
But maybe … maybe you don’t believe that post-merger valuation? Let’s put some perspective on Hyzon Motors’ market potential.
Hyzon Motors makes hydrogen fuel cell powered commercial vehicles, including heavy-duty trucks, buses, semitrucks and coaches. And it’s made them for some 20 years now.
Hyzon is no spring chicken that pushes its vehicles downhill — no sir!
We all know that gasoline and diesel are on their way out. Countries around the world are already banning combustion engines and moving toward greener pastures.
Now, I’m not going to get into the whole hydrogen power debate again. If you’ve made sure to get your daily dose of Great Stuff this year — and why wouldn’t you? — I’ve ranted your ear off already on why hydrogen is the perfect green energy source. But if you need to ketchup, or mustard, here you go:
- The Truth About Hydrogen.
- Hydrogen: It’s a Gas, Gas, Gas!
- The Hydrogen SPAC Attack.
- Best: Great Stuff Picks Hyzon Motors.
As you can see, I’ve written about hydrogen power a lot. And while regular electric vehicles (EV) are the bee’s knees right now, hydrogen fuel cells will give those slow-charging upstarts a run for their money.
But you’re worried about valuation. Isn’t everybody?
According to an SEC filing based on data from the McKinsey Center for Future Mobility, Decarbonization said that the fuel cell EV market is worth $1 billion right now and will grow 34% annually over the next decade.
So, by 2031, the hydrogen fuel cell market will be worth approximately $20 billion. And who owns the top hydrogen power picks at the onset of all this growth? All y’all Great Stuff Picks readers … hopefully.
Hyzon’s Hydro Head Start
Hyzon already has a foothold in the hydrogen fuel cell EV market with more than 400 vehicles on the road as we speak — umm, write. Furthermore, Hyzon recently signed several deals to put even more EVs on the road:
- 20 trucks for Dutch transportation companies.
- 70 trucks for an Austrian supermarket chain.
- A covenant to help produce 1,800 hydrogen vehicles in the Netherlands.
But, but … everyone in the U.S. is betting on traditional EVs! And where the heck could you refuel a hydrogen truck?
I’ll let Hyzon Motors CEO Craig Knight take this one:
Hydrogen is much more available in places like Germany or the Netherlands. There’s already a number of commercial vehicle stations where you can just pull up and pay to fill up like you do with gasoline today in the U.S.
It won’t be long before that is a reality, but for the moment, we limit the dependence on networks of hydrogen stations by focusing on the customers that use back-to-base operating models, where you only need one piece of hydrogen infrastructure to fuel dozens or even sometimes hundreds of vehicles in a given area.
That quote is from an interview Knight did with TechCrunch on March 1. Notice how Knight is aware that the U.S. doesn’t have many hydrogen fueling stations, but he’s not concerned.
Hyzon Motors also provides companies with centralized hydrogen fueling stations, allowing fleet vehicles to return to base and refuel.
But once the transportation industry gets ahold of this technology — especially with semitrucks — that will change quickly.
You see, most consumers still aren’t fully on board with “traditional” EVs. Throwing another option like hydrogen power into the mix is going to mess them up even more. Just think of the VHS versus Betamax wars … or HDVD versus Blu-ray.
Right now, traditional EVs have the upper hand. But if the transportation industry chooses hydrogen, that’s a massive leg up for hydrogen power and for Hyzon Motors.
So, let’s recap:
DCRB stock is severely undervalued heading into a merger that values Hyzon Motors at $2.7 billion.
Hyzon Motors has serious growth potential and constantly takes new orders for hydrogen fuel cell vehicles around the globe. And where companies don’t have their own hydrogen fueling stations … Hyzon hooks ‘em up.
The hydrogen fuel cell market will be worth approximately $20 billion in the next 10 years.
Hyzon Motors will be listed on the Nasdaq soon.
Right now, you have a chance to invest in Hyzon Motors before the company starts trading publicly.
Great Stuff Picks readers who bought in back when I recommended DCRB are down about 35% right now. Mea culpa, Great Ones. I should’ve recognized the hype that SPACs were receiving at the time. I was also unprepared for Wall Street to suddenly realize that stock valuations actually meant something.
That said, those of you who held on to DCRB will be rewarded. And those who buy DCRB now will see even more upside potential.
If you haven’t already: Buy DCRB.
But, if you’re still not ready to expand your Hyzon horizons yet, we have you hydrogen holdouts covered all the same.
This new technology is being hailed as a game-changer. It allows solar power plants to absorb much more energy during the day and pump it back out whenever it’s needed … even hours after the sun’s gone down.
In short, it makes solar power work “on demand.” And now, the world’s billionaires are scrambling to get in on it.
Elon Musk, for example, expects Tesla will eventually make as much money from this technology as it does from its car business. “The year on year growth,” he says, “will be absolutely incredible.”
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Editor, Great Stuff