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When I compiled information for my July 20, 2022 Seeking Alpha article titled “What’s the Outlook for the Ev Battery Market through 2029?”, I discovered a little-known fact that influences the maximum value of electric cars: “Brand Value” charging.
Brand capital can be explained as the additional price that a recognizable logo call adds to a product’s offering, and is created when consumers become increasingly personally aware of a logo and identify a connection to it.
The rise of festivals has been a catalyst for spending cash to advertise logo fairness on their products. Approximately 50 new electric vehicle models are expected to debut in North America through 2024, and an avalanche of new ones is creating a competitive environment.
Brand Equity securities, which provide a product with a competitive advantage in the marketplace, include:
When it comes to advertising, the average spend of classic automakers is $495 in line with the vehicle. In 2021, automakers spent $248 million on national TV ads for electric vehicles, up 282% from $65 million in 2020.
In 2020, there were 8000 national tv spots for vehicles, and in 2021, that number skyrocketed to 33,000. Meanwhile, TV classified ads for non-electric vehicles have increased from 563,000 in 2020 to 531,000 in 2021.
Table 1 Advertising expenditure commensurate with the car sold, which includes electric cars and internal combustion engines.
visual capitalist
This table presents brand equity. Tesla (TSLA) has one of the highest logo fairness and manages to spend $0 on advertising year after year. But again, Tesla CEO Elon Musk has 102 million followers on Twitter.
Therefore, Tesla should save an average of $495 consistent with the vehicle by having a higher logo value. This brings me to the topic of this article. If a logo has existing logo capital before launching an electric vehicle, this is an incredibly difficult asset, generating some demand and potentially saving billions in marketing and advertising pricing and adoption time.
EV Technology Group (OTCQB:EVTGF), which was recently indexed in OTC and, in my opinion, is turning the market with management’s vision of “electrifying iconic brands”. According to their press release:
“EV Technology Group recently acquired MOKE International and has already implemented the electric MOKE, which has a diversity of 120 km MOKE. EV Technology Group aims to bring iconic brands into a carbon-free future, while also communicating with its thousands of cult followings. around the world. “
According to an article in Robb Report:
Named for a slang term for “donkey,” the modern MOKE temporarily won favor with celebrities of the time, adding Brigitte Bardot, Peter Sellers, and the Beatles. He even played a supporting role in several James Bond films. And the surviving examples have belonged to others like David Letterman and Kate Moss in recent years. “
Photo 1 shows that the MOKE is not an electric vehicle for your daily commute to work, unless you’re going from the beach space to the golf course. I think those electric cars are a means of transportation for consumers of an island or resort, or vacation rentals. , such as the addition of opportunities to reproductions of the 1957 Porsche 356 Speedster Cabriolet rented from Maui Roadsters.
Photo 1
DONKEY
But the peculiarity of this acquisition is that MOKE International is an automotive company established with Brand Equity. This differs from the classic venture capital technique where startups raised more than $20 billion in 2021, more than double the $10 billion raised through corporations in the sector in 2020.
SAVs are technical and are publicly traded corporations with no genuine assets other than cash. They are constituted as investment cars with the sole purpose of increasing the budget and then locating and merging with a personal company. It’s a faster way to go public with a company than a classic IPO, yet many have run into monetary and legal trouble following a crackdown last year through the SEC.
Start-ups EV Nikola (NKLA), Lordstown Motors (RIDE), Canoo (GOEV), Faraday Future Intelligent Electric (FFIE), Fisker (FSR) and Lucid Group (LCID) have obtained public agreements from PSPC over the past two years. .
This exclusive technique to enter the electric vehicle market turns out to be an attractive option for those who, with the strength of the brands, together with the ability of EV Technology Group, make this strategy greater for the most classic brands. They combine an experienced control team: adding CEO Wouter Witvoet, who founded corporations like SecFi and Valor, and automotive executives like Dan Burge (former Lotus executive) and Isobel Dando (17 years at brands like Rolls-Royce). They showed a transparent call for MOKE and its ability to expand. its “brand first” strategy.
I discussed earlier that other approaches have been made, PSPC. No there are only legal issues, but those corporations have not been as successful, basically because they have not established social capital despite their IPO through a shell.
Figure 1 shows the percentage of replacement in the percentage returns of those six corporations over a one-year period. All recorded double-digit percentage declines.
Table 1
Y Charts
Figure 2 shows the diluted EPS (“TTM”) for these companies. It is not a question of comparing the EPS between companies, but of appearing that the profits for all have been negative during the last period of a year.
Box 2
Y Charts
The fast, choppy speed of electric car introductions in recent years has been “driven” by the war on fossil fuels, and while electric cars have grown 104% in North America in 2021, shipments of ICE (internal combustion engines) cars have declined. stable.
In 2019, 2. 2 million electric cars were sold worldwide, representing 2. 5% of total vehicle sales. The global car market declined in 2020, but electric car sales increased, reaching 3 million sets and accounting for 4. 1% of total vehicle sales. Electric vehicle sales more than doubled to 6. 6 million in 2021, representing 8. 3% of the global automotive industry. Electric cars accounted for the entire net expansion in global car sales in 2021. As of May 2022, ev sales reached 3. 2 million, or 11. 0% of the global automotive industry, as shown in Chart 3.
Figure 3
Inside vehicles
The strong expansion prospect of electric cars is a catalyst for startups to succeed in the market as temporarily as possible. Unfortunately, many of those new electric vehicle readers have similar futuristic designs with similar or even engine technology. But those are not brands that other people know and love. EV Technology Group’s technique of getting a company with a “Brand Value” exposure is turning the market with a vision of its “electrifying iconic brands,” and I’m tracking long-term acquisitions for readers and subscribers.
This loose article presents my research of this high-tech sector. More detailed research can be found on my Marketplace Semiconductor Deep Dive newsletter site. You can learn more here and start a 2-week risk loss test now.
This article written by
Dr. Robert N. Castellano is president of The Information Network www. thedatanet. com. Most of the data, as well as the charts and graphs I use in my articles, comes from my market research reports. If you would like more information about an article, please visit my website.
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I won a PhD. Degree in Chemistry from the University of Oxford (England) under the supervision of Dr. John Goodenough, inventor of the lithium-ion battery and winner of the Nobel Prize in Chemistry 2019. I had ten years of delight in the wafer production box. in AT
I have been editor-in-chief of the Journal of Active and Passive Electronic Devices since 2000. I am the one from the e-book “Technological Trends in VLSI Manufacturing” (Gordon and Breach), “Solar Panel Processing” (Old City Publishing), “Alternative Energy Technology” (Old City Publishing). Also in the solar field, I am CEO of SolarPA, which uses a patented nanomaterial to cover solar cells, increasing power by up to 10%. I recently published a fiction novel Bendita, to be had on Amazon and other sites.
Disclosure: I/we do not have any stock, options or derivative positions in any of the corporations discussed, and I do not intend to initiate such positions within the next 72 hours. I wrote this article myself and expresses my own opinions. . I don’t get any refunds for this (other than Seeking Alpha). I have no business relationship with a company whose shares are discussed in this article.