Mesa-based electric-truck maker Atlis Motor Vehicles starts trading on Nasdaq; shares fluctuate wildly

  • In Business
  • 2022-09-28 22:35:41Z
  • By AZCentral | The Arizona Republic
Atlis CEO Mark Hanchett discusses his company
Atlis CEO Mark Hanchett discusses his company's prototype electric truck in 2021.  

No delivered products. No revenue. No profits. No matter.

Atlis Motor Vehicles is Arizona's latest public company of note following a robust initial listing on the Nasdaq stock market Sept. 27. Strong initial investor enthusiasm for the maker of electric pickup trucks resulted in a tripling in the value of Atlis' shares on the first day of trading, followed by a sharp decline later on the second day.

Atlis, now trading on Nasdaq under the symbol AMV, is developing a commercial work truck and the electric batteries to power it. The company listed its shares on Nasdaq after raising more than $35 million through Regulation A and Regulation Crowdfunding efforts - two streamlined efforts designed for smaller, entrepreneurial companies compared with the normal, more intensive registration rules mandated by the federal Securities and Exchange Commission.

The company becomes the latest publicly owned electric vehicle maker with Arizona roots, following in the footsteps of Phoenix-based Nikola Motor, a manufacturer of zero-emissions heavy commercial trucks that are produced in Coolidge, and Lucid Motors, a California company that is delivering luxury electric sedans from a factory in Casa Grande.

Atlis stock went on a wild ride after opening trading Sept. 27 at $30.11 a share. It closed that day at $82.12, according to Yahoo! Finance, then surged as high as $243.99 on Sept. 28 before closing at $75.15.

Mark Hanchett, Atlis' CEO, posted a video on YouTube apologizing to shareholders who complained on various social media sites that they were unable to sell shares because they weren't yet transferred into brokerage accounts. Atlis raised money from small investors in crowdfunding efforts over the internet before the stock began trading on Nasdaq.

The new Atlis electric vehicle will be available to consumers but is designed mainly as a work truck.
The new Atlis electric vehicle will be available to consumers but is designed mainly as a work truck.  

Customized trucks for businesses

Atlis, based at 1828 N. Higley Road in Mesa, claims to be the only electric-vehicle manufacturer to develop its own batteries. It plans to offer the technology to other businesses. Atlis trucks are designed for use in agriculture, construction, the utility sector and other industries. Atlis plans to customize truck designs according to the specifications of buyers. Management has said it considers work trucks as an area largely underserved by other electric-vehicle makers.

The timing for Atlis' emergence also is favorable, as the recently passed federal Inflation Reduction Act creates incentives for companies that use battery packs built in the U.S.

"We are incredibly gratified to have reached this milestone in partnership with our pre-public investors, many of whom have been invested in the company since its inception," Hanchett said in a prepared statement.

The company was launched in 2016 at Hanchett's home.

The next phase, Hanchett added, is to execute an "ambitious business plan to achieve revenue and profitability in an exciting and emerging market with significant opportunities to differentiate ourselves and tremendous potential to create, maintain and increase shareholder value."

Losses up, cash down

Atlis this week disclosed wide losses in its developmental, pre-revenue stage. For the most recent quarter ending June 30, it reported a net loss of $17.3 million, widening from $6.2 million in the same quarter one year earlier, with stock-based compensation and general/administrative expenses accounting for most of the red ink.

Company assets as of June 30, 2022, dropped to $3.1 million from $4.6 million as of the end of 2021, with cash shrinking to $638,000 in the latest period from $3.2 million. Atlis has reported negative cash flows from its inception.

Management indicated that the company plans to generate revenue in 2023, with Atlis already having produced its first battery cell and its first XT truck prototype. The company said it intends to start delivering trucks in 2024. Other plans for the company include developing commercial charging stations and offering a subscription service to customers that will cover vehicle maintenance, insurance and servicing costs.

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This article originally appeared on Arizona Republic: Atlis Motor in Mesa takes wild ride in first 2 days on stock market


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