A company hoping to disrupt the massive semitruck market announced a SPAC deal Monday, with plans to launch autonomous trucks in 2021.
The deal values the company at an enterprise value of $2.47 billion and includes a $150-million PIPE.
Shares of Plus will trade as “PLAVV” on the NYSE if the merger is approved. Current HCIC shareholders will own 13% of the new company.
About Plus: Plus is working on mass production-ready, low-cost Level 4 autonomous driving technology for the long-haul trucking sector. The company believes it can cut costs and increase margins with its proprietary full-stack Level 4 software.
Plus uses radar and LiDAR for 360 degree sensing systems.
The company plans to launch its autonomous driving solution PlusDrive in 2021 with partner FAW, the world’s largest heavy truck manufacturer. The companies will partner to mass produce the FAW J7L3.
SL4 from Plus is expected to increase fleet operating profits by 30% to 70%. The company reduces costs and can reduce carbon emissions.
Growth Projections For Plus: Plus is targeting an autonomous long-haul trucking market worth an estimated $1.2 trillion in the United States and China. Broadly, the company is targeting a global freight market worth $4 trillion.
In the trucking industry, there is a driver shortage and high driver turnover. Rising insurance costs and low margins have also led to growing demand for future autonomous trucking capabilities. Two-thirds of costs for the trucking industry are made up from labor and fuel.
“Autonomous trucking is going to change the world,” Plus said in its presentation.
The partnership with FAW in China gives Plus a large customer base.
In the United States, Plus has a partnership with one of the largest private truck fleets for 1,000 units who was unnamed.
Plus Financials: Plus has over 7,800 units preordered from its existing customers.
Plus is guiding for revenue of $16 million in fiscal 2021 and $250 million in fiscal 2022. The company sees revenue hitting $1 billion by the year fiscal 2023.
Plus is guiding to deliver 3144 units in fiscal 2021 and 3,878 in fiscal 2022.
By the year 2025, Plus anticipates holding a 7% market share of the autonomous trucking market.
Rivals TuSimple Holdings (NASDAQ: TSP), Waymo and Cruise are valued at $8.1 billion, $30.75 billion and $30 billion respectively.
HCIC Price Action: Shares of Hennessy Capital Investment Corp V were down 0.95% at $9.90 at last check.
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