in this video I wanted to go over our valuation and share price we've got a lot of questions on that how did we end up at $40 a share where did our valuation came from and what did we use to determine that valuation well to start with our share price is $40 a share $55 Canadian 40 us so why is it that so high when you seeing other companies having a $5 $15 price per share well when it comes to it those other companies have a lot more shares a publicly traded company can have hundreds of millions of shares therefore you take the valuation or the market cap of that company divided by the number of shares and that gives you your share price so for Edison we have a $200 million us valuation that gives us by 5 million shares $40 per share now how do we have a $200 million valuation how did we get there what metrics did we use how did we evaluate it well it's not an exact science to evaluate a pre-revenue company because you got to there's nothing to go on when you're pre-revenue you're not selling a product so you have to look at well what's the potential that they could be in the future what's the risk what are they at and one of the best ways to do it is look at other similar companies what are those similar companies at for their valuation at similar stages of growth to what we're at so we're in the basically we built a couple prototypes we've done some testing now we've sold some trucks to customers and we're now building the first production trucks so if we have a look at where other truck manufacturers in the startup space were when they were starting where were those EV companies at at that stage similar to us look at their valuations compare all the different valuations to similar companies and then we got to have a look how do they get to their valuation was your valuation Justified and what should our valuation be based on what we learned so in this video we're going to have a look at some of the other competitors some of the other EV truck startups and we're going to compare at their similar stage of growth to where we're at now and we're going to tell you why we're at where we're [Music] at all right start with uh we're going to pick the elephant in the room nicam Motors uh yes that company has had a lot of issues but it's a good way to compare the value of a startup semi-truck EV manufacturer and what their value was because it's well documented from when they had their multiple first prototypes uh to where they were in valuation where they are now so let's just have a look at where they were and what their valuation was at that time so in 2018 Nicolas showed a video of their truck rolling down a hill they had released it a few years before as and showed it off but it wasn't until 2018 that they actually showed it driving and announced that they were getting ready to build for customers this is a similar stage that I think we're at um except our truck actually works um that's another thing we'll get into in a second but more importantly what was their valuation at this point I found this article they were able to raise funding at a $1.1 billion valuation in 2018 so 2018 uh they showed the video going down the company was worth $1.1 billion at a similar stage in gr so I would say that we are at a similar stage to what investors thought Nicola was at for having a truck that rolled we've actually shown it we've hauled loads we've wasn't an empty drive and we've seen the loads on the back of the truck that we've hauled we've showed that it works but if Nicola was 1.1 billion I don't think 200 million we're 900 million less than that company at a similar stage and it gets crazier when you look into it so now we can get into the data that we can actually track here and in 2020 it came out that Nicola admits the truck was just rolling down a hill so in 20120 it came out that this truck didn't even work so what was the valuation of this company once that already people found out that there was fraud involved we can go and have a look at the valuation here so in 2020 nickola Motors was worth 10 billion off a truck that didn't even work when did they actually reveal their first Hydrogen prototypes that they had promised September 29th 2023 is when they unveiled their first prototypes their first launch of the hydrogen prototypes we can actually scroll through here September 29th 2023 we have a $2.1 billion valuation at the unveiling of their semi-truck prototypes despite them showing off one truck and getting 1.1 billion and still keeping a$1 billion valuation when they released their next prototypes for their truck that they faked they were at a $2.1 billion valuation still the CEO of Nicola Motors was found guilty of fraud on October 14th 2022 and even at the day where they were found guilty of fraud they were 1.8 billion now these valuations are clearly over the top unrealistic that a company convicted a fraud that just has prototypes was between 1 to 20 billion and at their Peak was worth 30 to4 billion dollar on the promise of delivering these hybrid or electric hydrogen trucks now I think that's a nuts valuation we are not touching that but that is a comparable one if you were to look at the extremes of where Edison could go to next I want to have a look at lion electric or Le on they are another Canadian truck manufacturer that was more focused on school buses smaller electric vehicles at class 5 class 68 Market able to look into some of the valuation they had where were they at now we seen this news article from 2020 where they're looking to start delivering their first trucks to their first customers that was in September of 2020 and we can find the financial information on that as back in 20 20 they were around 700 Bill million to about a billion dollars in valuation on the news that they were going to be starting to deliver trucks now we're at a similar point where we're building our trucks that we're hoping to deliver to our first customers very soon so I think this is a fair one to say and where these guys are at 700 million to 1 billion were not there they also had a bit of the school buses that they were building a little bit of and some issues like that as well they were promising to the market that they're going to be able to make 2,500 trucks per year this is one of those things where I say that we're not making those promises so in light of the fact that we're not making the promises I think we're at a comparable point where they had the smaller delivery trucks and the school buses we've got the semi- trucks and the pickup truck uh retrofit kit so we do have two different product lines but we're not promising 2500 so instead of that 700 million to1 billion doll valuation we're around that 200 million so we're five times less than leyon at a comparable stage if you take this to the high side of Leon um where they're really saying that they're going to get into production and build thousands of trucks they hit a maximum market cap of 4.5 billion unfortunately Leon does stand as a little bit of a testament to why you shouldn't overpromise just try and raise a bunch of money and say you're going to build thousands and thousands of trucks ultimately in my opinion they may have rushed a little bit too soon they're now bankrupt they couldn't deliver on their promises they couldn't build trucks for a profit and it went down here's an interesting one exos it's a company probably not a lot of you have heard of but essentially back in 2020 these guys were able to raise $20 million to increase production that's where we're at that's what what this raise is going on for right now we have built a a couple prototypes we've tested it we've shown it off to customers we've got sales now we're trying to increase production so where was exos back in 2020 so let's have a look at exos' shares uh if we have a look back to 2020 that's where you can first see that the information is available they are worth $300 per share right now they are worth $3 per share their market cap currently is 25 so roughly Times by 100 gives you $2,000 500 million or $22.5 billion so when they had built a truck and they were looking to upscale production they were worth $2.5 billion over 10 times the value of Edison Motors at this point we can have a look at another startup Atlas who was going to build a pickup truck which is crazy nightmares for regulation but let's have a look at them uh three years ago back in 2021 they revealed their first prototype which is the truck you see here and I was able to find an article where they are talking about 2021 and raising that scaling it if you have a look the company's website was valued at $950 million that was their valuation after revealing their first prototype um Edison Motors is currently on our second prototype that things we've learned from the first one I'm not sure if Atlas had a second one yet or not but we are now going into production and that's something that they had not done yet so 950 million we are still five times less of a valuation than Atlas okay the next company I would like to introduce is APPA I believe that they're right now at a similar stage they built a couple prototypes they work they're showing them off they've driven around a bit and now they're taking some pre-orders and they're looking to go to production exactly where Edison motors's at uh this is their vehicle here it's a little three-wheel motorcycle it's pretty cool I actually really like it I think they've got a cool idea it's powered off solar panels on the roof so it's basically like range extended but instead of a diesel generator it's solar panels to give you a little bit extra range really cool idea cool company uh let's have a look at their investment what are they raising money on because right now they're doing the same thing we're doing they have an investment option on their website that you can go to you can click on and invest now where all of their information is available on an offering circul click on that and we can scroll down on that and we will see that they have about 70 million shares outstanding 55 of Class A 15 of Class B now I want to make this clear at Edison Motors we only have one class there's no preferred class class A or Class B everyone that owns a share has the same class has the same voting rights and has the same say in the company as anyone else that owns a share now their share price is currently $155 1480 if you times that by the 70 million shares outstanding you get about $1 billion in valuation or about 5x Edison Motors this is another good point I wanted to bring up people ask us about share price they notice that our shares at $40 us or $55 Canadian is a lot higher than a lot of these other companies like aptera that's because we don't have a lot of shares outstanding Edison Motors only has 5 million shares not 70 million so if you were to take that 200 million divided by the 5 million you get $40 per share we have a higher share price because we don't have a lot of shares so each share is worth a little bit more all in all I really like aptera I think they've got a really cool unique product uh I'm impressed with what they're doing but yeah they're at about A1 billion dollar valuation five times what we're currently asking for Edison Motors all right the next company I think we need to look at because they're very very similar to Edison Motors in what we're doing they were also doing a hybrid drive train and that's hen hen went with natural gas we went with diesel but hen unveiled their prototype here it looks like in uh July 14th of 2020 so if we scroll back at their market cap to compare their valuation back then they were around 3.8 billion and they went up as high as 4.1 billion so they announced their thing they hadn't started production but they had showed off a prototype and they were getting ready to scale up hen got out in November of 2020 they completely stopped making trucks that's why they offered us the parts we have a look they were worth 150 million to $200 million valuation when they announced that they weren't making trucks anymore that they couldn't continue to operate and currently right now they're still worth 680 million so when the company was was at the same stage we were at they were worth about $4 billion when they said that they weren't even going to make any trucks anymore and laying off all their staff they went down to 150 million when they had to restructure so we're 200 million we're only 50 million more than the truck manufacturer who announced that they're not making trucks anymore luckily for hilan good on them they were able to recover they were able to restructure their business a little bit and start getting back but this kind of shows you where we're at for valuation on similar companies like that for when they're at the same stage as us and when they're bankrupt or near to it so now we had a look at the startups now why are those startups being valued so high especially in the truck manufacturing sector they're going to look at existing players in the industry and see where established players are valued so if a startup can get established and enter the market where would their value end up being so let's have a look at Kenworth and Peterbilt other wi known as packar packar has a market cap of $54 billion comparing it to General Motors is 59 billion packar Kenworth and Peterbilt are similar in value to General Motors Ford only has a market cap of 40 billion in other words Kenworth and Peterbilt are worth about $15 billion more than Ford motor now why are they worth a fair bit Kenworth and peterb don't make as many vehicles it's because the cost of a semi- Tru is obviously a lot higher and the other thing with that is that their net profit margin the net profit margin of packar was 13.5% Ford's profit margin to have a look at was 2.55% so the big truck oems are making a 135% margin where the automobile manufacturers are working in that to 2 3% margin so you can see why the valuation of these semi- trucks is so much higher because they're a more profitable manufacturing business and I think that especially if we're focused on the vocational side where the heavy vocational has an even larger margin than the mass-produced Class 8 Highway trucks I think we're very very well positioned on that going forward once we do become successful hopefully we do all right so we had a look at our compe and we're seeing between 1 billion to4 billion in valuation so now with Edison Motors being 200 million valuation why are we five times less than even the lowest amount it's because we think they were over promising we don't think that they were entitled to the valuations they did because I think they made promises that they couldn't realistically make we're not doing that we're also setting a longer time frame they were promising that they were going to get to production really soon we're we're saying that it's going to take a while and we're going to go the slower route and the more controlled route obviously it gets discounted back to Net Present Value if they're saying that they're going to be here within a year and we're saying five years that needs to be discounted back but I think our slow approach is the right way I think these other companies were overvalued I think we're giving a realistic value based on what we could potentially achieve discounted back to what's realistic and accounting for the risk we face in getting there is Edison Motors a risky play absolutely as we've seen a lot of these other companies didn't make it but we're thinking that lower valuation than all of the other competitors at similar stages should help account for that risk as we find out that going forward I think we have a lower share price we have a lower valuation because we have a more realistic tempered expectations that we're giving and I'm thinking a lot of people seem to be agreeing with us we're raising money the investment campaign is going successfully so I'm hoping we're raid on the money with that one let us know what you think in the comments down below obviously uh evaluating a pre-revenue business isn't an exact science all we can do is go based on what other people have achieved at similar stages of growth in the market and adjust accordingly based on what we believe and I hope that makes sense all right guys I want to just take a couple seconds we're not doing an ad I just want to thank thank everyone that's invested with Edison Motors you guys know we don't have Venture Capital we don't have that kind of money we told them no we are invested and owned by the fans like you who are watching this video you guys supported us all the way when it was just an idea through building Carl to building Topsy and now as we go back into our next production run taking this next step so all of you that supported us invested with us thank you so so much we appreciate it more than you know