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Vertical integration across the EV supply chain will define the winners of the industry. Today, we will breakdown, Proterra ($ACTC - $PTRA). The company is planning to become public through a reverse merger (SPAC) with ArcLight Clean Transition Corp ($ACTC).
If you want to read the full breakdown, click here ➡️ Proterra Breakdown Substack
If you want to download my pdf report, you can click below ➡️
📖What is Proterra?
Proterra is electrifying the commercial vehicle space through the three symbiotic business lines that ultimately create their ecosystem:
- Proterra Powered: In this business segment the focus is to design, manufacture, integrate, and sell top-tier battery systems and electrification solutions such as drive-trains, and controls for their vehicles and OEM (Original Equipment Manufacturers) customers.
- Proterra Transit: the focus is to design, manufacture, and sell electric buses for public and commercial fleets.
- Proterra Energy: the focus is to provide “high-power” charging solutions and software services to support the company’s platforms. Specifically, the company has built the end-to-end infrastructure to optimize energy costs and ensure vehicle-to-grid functionality.
Proterra is the “Tesla” of the commercial vehicle space by harnessing the power of the electrification supply chain.
📈Market Opportunity
The electric vehicle revolution groundwork is established with the advancements in battery technologies, infrastructure, and government policies. Regarding the commercial vehicle space, the focus is on the total cost of ownership and achieving faster zero-emission target goals spearheaded by industry leaders and governments. According to the Environmental Protection Agency (EPA), the transportation sector represents about 28% of the GHG emissions in the U.S., and large size commercial vehicles account for 23% of those emissions. Based on the GHG emissions, Greenbiz revealed in their survey of global fleet companies that 60% of companies have GHG targets.
With 85% decline in battery costs, 40% cheaper operating costs than diesel vehicles, the electrification of buses and commercial vehicles will expand with reports from Frost & Sullivan highlighting 50% market penetration by 2025. As of 12/31/2020, there are 25,000 buses in operations that are targeted to achieve zero-emission by 2040. Governments, communities, and companies are all aligned in the demand for sustainable solutions.
As a result, Proterra believes they have an addressable market of $225 billion or 4.4 million commercial vehicles by 2023 and with an infrastructure opportunity of $37 billion charging investment or 40 TWh of annual energy need.
🤯Key Insights for Time Investors:
- Market forces have reacted to the alignment of government, communities, companies, and technology
- States are targeting 100% zero-emission for last-mile-delivery and heavy-duty trucks by 2050
- The world’s largest logistic companies (UPS, FEDEX, AMAZON) are transitioning their fleets to electric
- 85% decline in battery costs and 40% decline in operating costs versus diesel vehicles
- Unlike passenger vehicles, commercial vehicle electrification poses different challenges such as high mileage, weight, and lifecycle requirements. Proterra has designed, manufactured, and proven the formula to accomplish this since 2014.
- When it comes to electrification, the focus should be in the technological advancements that ultimately monopolize the value chain. Proterra not only builds their vehicles, but they also build their proprietary drivetrains, and more importantly the end-to-end charging infrastructure needed for scale.
- Large R&D is being invested to domestically produce battery cells (similar to Tesla)
- Best in class battery systems enables greater range and weight loads with a lifespan of 4k cycles
- Proterra has proven their products are successful with ~16M real-world miles, 450+ charge points, and 1000+ vehicle sales
- Proterra is built with innovation at the foundation and is positioned to become the “Tesla” of the commercial space.
Investor Lineup:
- Daimler Trucks + Tao Capital Partners
- BMW i Ventures + Edison Energy + Constellation + Kleiner Perkins Caufield & Byer + Federal Transportation Administration
- Chamath Palihapitiya – Social Capital (PIPE Investor)
- Post SPAC Merger with ACTC, ~68% ownership will remain with existing Proterra shareholders
YouTube
Revolutionizing Transit, Together - Celebrating 100 Proterra Customers
More than 100 transit operators across North America have partnered with Proterra to implement electric buses and charging infrastructure. The future is elec...
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