why Exro is a RARE find and EXCELLENT investment opportunity.
Exro Technologies has a revolutionary technology, so revolutionary it's often referred to as step-change. What does that mean? A step change in technology is one that is so significant that it becomes commonplace, changing from Coal to Diesel in trains was a step change in technology, changing from carburetors to fuel injection in vehicles was a step change in technology. Well Exro's coil driver will be a step change in the EV world.
You have to be a little tech savvy to really comprehend the value of what Exro has. I'll try to explain it in simple terms. Exro has found a way to electronically control electric motors in such a way that they can make them much more efficient. Electric Motors typically, when they are made, are set with one speed profile and one torque profile, much like a one speed bicycle is. When you put more electricity to the motor it spins faster, similarly when you turn the pedals faster the bike goes faster. Now if you want to change the torque profile of a bike to make it easier to go up hills you simply add external gears, same thing goes for existing electric motors. To get more torque or speed out of an existing electric motor, you must add a mechanical gearbox specifically geared to accomplish the required task. Not so with Exro's coil driver. Exro is able to electronically change the electrical inputs into a motor to seamlessly make the motor provide more torque and less speed or more speed and less torque. This is a FIRST in the world of Electric motors, and it's a HUGE discovery. Car makers can now make their EV's perform 30% better with less parts, in a car that's cheaper and lighter to manufacture. Think about the cost savings to the Automakers. Exro just removed a whole gearbox from the supply chain, Gears, bearings, casing, shafts etc no longer have to be made and installed in an EV. The. cost and weight savings is not to be underestimated.....Exro's technology is truly an amazing discovery and will change the EV industry. Many believe in time, all EV's will be replacing standard inverters, which every motor requires, with Exro's coil driver, I am one of those believers.
So why are we lucky to be able to invest in Exro? Normally technologies like this, MAJOR discoveries, are privately funded until they are ready for an IPO, as the inventors and team around them recognize both the value and potential of what they have discovered. Exro in its infancy and its Board of Directors, known then as Biode Ventures, chose to go public on an exchange in Canada with the lowest barrier to entry and raise funds for further research and development, and for years bumped along working on the tech and trying to break into the commercial markets with very limited success. They didn't have the personnel required to transition from discovery to commercialization. That ALL changed when Sue Ozdemir took the helm. Upon Sue's arrival in late 2019, industry leading board members were brought in, a clear pathway to commercialization was laid out, sufficient funds were raised to fund Exro to commercialization and the stage was set for success. In two short years (very short by industry standards) the execution of the pathway to commercialization has been flawless and very successful. Exro has signed with a Tier 1 automaker. Linamar. This doesn't happen unless a company has proven beyond a shadow of any doubt their technology works and is integratable to an EV.
Sue's laser focus on commercialization is driving Exro towards wild success. Totally new products in the automotive world that involve the heart and soul of a vehicle, in this case the motor, are not instantly accepted by industry members. A company must prove them to be effective, reliable, robust, and prove beyond any doubt that the technology not only works today but will work for years. So that is exactly what Sue set out to do with the technology. Third party testing and verification from AVL. Partnering with as many small and nimble companies as she can to quickly integrate the technology into as wide a variety of drive motors as possible in order to not only prove the tech on test benches but in real world applications. Sea Electric, Vicinity Buses, Land MotorCycles, Zero Motorcycles, Potencia. She has also set out to meet all the required certifications required for selling into automobiles and homes. Every move Exro has made since Sue's arrival is geared towards selling Exro's tech to the automotive world.
Why the automotive world? one word 'Volume'. Every time an automaker designs a new vehicle the intention is to sell a million or more of that same model before needing to make changes. The volumes in the automotive world are simply enormous.
Let's quickly talk about the numbers and cost benefits of an Exro coil driver to the Automotive world. Exro claims their coil driver improves performance by 30% over a conventional system in an EV. When using Exro's coil driver which replaces the current inverter in an EV the AutoMaker also has the benefit of eliminating an external gear box and all the related componentry. The cost savings and weight savings alone is a HUGE benefit to using an Exro Coil Driver, never mind a 30% increase in overall performance. Exro has not released any pricing data yet, but many believe it's safe to assume that Exro will benefit from some of the savings it will pass on to the Automakers. With that in mind, many believe Exro will sell the coil driver at a profit of $500+. This is pure conjecture as we don't yet know for sure. You can do the math from here. A typical order for a model year car runs into the hundreds of thousands of units. So with one order of 400,000 units at a $500 profit, Exro goes from annual losses to $200M profit in one day on one order of one product. That's worth repeating...So with one order of 400,000 units at a $500 profit, Exro goes from annual losses to $200M profit in one day on one order of one product. Exro has multiple products in the pipeline and is talking to multiple car makers. How do we know for certain? Because every move Exro makes is geared towards selling the coil driver to EV makers, without exception, so it's really the only logical conclusion we can make. The customers are there and ready.
What other stock in your portfolio has the potential of seeing the valuation of the company jump from $300M to $2B a single contract with the very real potential of multiple contracts with similar values? That's why I say anyone invested in Exro was very fortunate to find it and is lucky to be in it.
Timing. In the AutoMotive industry a new design for a car typically takes 4 years. From the time they lock up the design and secure the supply chain. Why does it take so long? Volume, the volumes are enormous. Securing the materials, the fasteners, the components, etc is a delicate dance of masterfull supply chain management. It just takes time. Exro has come along with a revolutionary technology the EV world has never seen before, Exro has never manufactured in volume so has no manufacturing and supply credibility with the industry so how do they prove to the Automakers the tech works and how do they prove they can make them in volume? Partnerships. This is exactly why the Linamar partnership is such a big deal. Linamar being a tier one supplier to Automakers is a proven source of delivering large volumes of reliable quality products on time. By partnering with Linamar Exro assured the Automakers they have what it takes to become a reliable supplier of Coil Drivers. Exro is building out a facility to make runs of 100,000 units at a time, and will be capable of 3 runs a year, so 300,000 units a year, and what is most surprising about this is they call that 'low volume'. But they haven't yet made any so the AutoMakers need assurances.... Linamar. The 'low volume' comment gives you some idea about the volumes they are discussing with automakers. The numbers are huge.
In Addition to the Coil Driver, Exro has other technologies they are co- developing. One is a battery control system that extends the life of EV car batteries. Exro intends to start a new industry using batteries out of EV's and building battery banks to supply electricity to industrial customers. Exro aslo is revolutionizing the charging side of EV's as their technology is reducing the need for external charging componentry for vehicles, another cost savings to EV makers, and convenience for customers, as all they will need is a simple cord to connect their vehicle to the grid or charging station. Exro aslo has technology that Industry members who are building out charging stations can use to simplify the charging process. All this to say in addition to the Coil Driver Exro has multiple revenue streams coming, and this can only positively affect that share value. Where Exro's stock price goes is anyone's guess, but my guess is that once they sign one deal with one automaker, chasing the stock price will get really expensive really fast. Keep in mind Exro does NOT have a huge number of outstanding shares.
All of this to say, in my 30 years of watching the markets and buying and selling stock as a retail investor, I've never come across a stock with more potential upside than Exro.