Electrifying Class 8 Trucks

A reader sent me this video, in which an ostensible expert in equities trading raves about the merits of purchasing stock in Hyliion, a start-up that claims that future sales of its electric drivetrain for Class 8 trucks is going to set the world on fire.

Craig:  Thanks very much for this, but based on my understanding of this market, I’m not a believer.  I was a consultant to a company called Efficient Drivetrains Inc. before it was sold to Cummins, and I saw how these people, with fantastic IP, struggled to find OEM and end-user customers.

These presentations are very light on the company’s IP, and this guy’s data points are completely irrelevant.  Yes, the total available market for Class 8 trucks is very large, and yes, companies like Ryder have lots of them.  But can’t he tell us something–anything–that suggests that Hyliion will succeed in this marketplace based on some unique selling proposition?  Note their childish illustration above.  Does that seem like something unique?

Moreover, hybridizing long-haul trucks using regenerative braking adds no value, since they brake very little as they drive across our freeways; it actually adds negative value with its cost and additional weight.

My guess is that this is a “me too” reaction to the success of the extremely controversial company Nicola Motors, and has no real substance whatsoever; it appears to be the ultimate in “pump and dump.”

Reader: There is no free buck!  LOL! I would like to see the trucking business upgrade to more efficient earth friendly tractors.  There are too many pump and dump schemes out there!  Anyway, thanks for your feedback.

Craig: Yes, the electrification of cars and light-duty trucks is happening as we speak; it should be completed within a decade or so.  The same cannot be said about Class 8 trucks, ocean-going cargo ships and large aircraft.