As I’m writing this on July 29, Hyliion HYLN> shares are trading at exactly $10, down to the penny. It’s an incredible bargain in my estimation, and I’m privileged to have the opportunity to pound the table for HYLN stock today.
Not to brag, but I was less bullish when the shares were trading at $58 in September of last year. I could feel the hype phase starting to fade, and I sensed that the stock would roll over.
But HYLN stock isn’t just rolling over now – it’s playing dead. You’d think, judging from the stock’s price action, that Hyliion was closing shop and giving up.
Nothing in the company’s press releases suggests that Hyliion is in any sort of trouble. Someday, you might look back and wish that you had taken a position when the share price was this low.
A Closer Look at HYLN Stock
Or, HYLN stock could go to zero. Who knows, really? But if you truly believe in “buy low, sell high,” then this is your chance to take action.
Consider this. Before shell company Tortoise Acquisition (which traded as SHLL stock at that time) announced its intention to reverse-merge with Hyliion, the share price was around $10.
And as July draws to a close, HYLN stock is back down to that same price.
The markets don’t often give second chances, but traders now have an opportunity to basically turn back the clock and get in on the ground floor with Hyliion.
What brought the share price back to that level? Probably, it’s because the mania over special purpose acquisition companies (SPAC’s) and electric vehicles came and went.
Personally, I like to recommend stocks after the hype cycle has passed – or better yet, before the next wave of interest comes.
Long-Range Version, Long-Range Vision
So again, I’m shocked that HYLN stock isn’t higher than it currently is. The company is a true innovator, and Hyliion’s automotive product line is only expanding in 2021.
The skeptics and doubters should immediately read Hyliion’s fresh press release announcing a long-range version of the company’s Hypertruck ERX.
What do we mean by “long-range”? At product launch, this truck will offer 75 miles of all-electric range and over 1,000 miles of total range.
That 1,000-mile total range will enable freight hauling capabilities that are comparable to what you’d expect from diesel trucks.
Battery-only electric trucks typically face range and charging infrastructure challenges. To address this issue, the long-range Hypertruck ERX’s electric powertrain system uses an on-board generator to continually recharge the battery pack while driving.
Moreover, the long-range Hypertruck ERX is plug-in capable. As a result, the fleets that deploy it will have the ability to recharge with low-cost renewable electricity from the grid.
Zero Emissions, Full Compliance
I’ve emphasized the new Hypertruck ERX’s version’s range and plug-in capability, but there’s another angle that’s worth noting.
Due to its increased all-electric range, Hyliion’s new truck line will meet California’s Advanced Clean Truck Rule regulations.
Plus, the production vehicle is expected to qualify for zero-emission vehicle sales credits.
In other words, there’s a significant financial incentive for businesses to deploy the long-range Hypertruck ERX as soon as it’s available.
Furthermore, this new truck version will help businesses remain compliant with regulations.
As Hyliion points out, “The ACT rule, approved by the California Air Resources Board in June 2020, requires Class 8 truck tractor manufacturers to sell ZEVs [zero-emission vehicles] in California, beginning with Model Year 2024.”
In anticipation of this, we might expect businesses to switch to vehicles that offer emissions-free power, range and efficiency – and the long-range Hypertruck ERX should fit the bill perfectly.
The Bottom Line
Believe it or not, if HYLN stock goes down further, I’ll continue to recommend it.
If anything, I’ll be even more enthusiastic about it. That’s just how I roll.
And if you’re short-selling the stock, please be careful. You might get run over by a wave of buying interest in the long-range Hypertruck ERX.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
HYLN shares were trading at $9.78 per share on Monday morning, up $0.08 (+0.82%). Year-to-date, HYLN has declined -40.66%, versus a 18.55% rise in the benchmark S&P 500 index during the same period.
About the Author: David Moadel
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. More…
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