Sales of electric vehicles (EV) have been surging higher on a year-over-year basis and this trend has benefited several industries that sell equipment and services for EVs.
According to the International Council on Clean Transportation, there is a major gape between the supply and demand dynamic for EV charging infrastructure in the US. The council reported that EV infrastructure in the US will need increase by at least four times to match the expect growth in the sale of EVs.
Last year, we highlighted Indie Power Systems (IPS) as an operator that is positioned to capitalize on the EV market through the commercialization and sale of state-of-the-art charging stations. We are favorable on the direction the management team has taken the business and believe the company is positioned to capitalize on a rapidly growing industry.
A core reason for our bullish outlook on IPS is related to how the management team plans to capitalize on the EV charging market by selling both a commercial and a home version type of product. By selling to these markets, the company is targeting an industry with a rapidly growing total addressable market (TAM).
According to the International Council on Clean Transportation, the home charging market is one of the most important verticals of the EV charging industry. We are bullish on IPS’ leverage to this aspect of the EV charging market and expect the home charging vertical to play an important role in the growth of the entire business.
A Differentiated Opportunity with Substantial Growth Prospects
Another core pillar of our bullish these on IPS is related to how the business is positioned to benefit from having an environmental, social, and corporate governance (ESG) component. During the last year, the ESG theme has gained considerable traction with investors and government agencies. We expect the ESG aspect of IPS to play an important role in the long-term opportunity and believe our readers should be aware of this.
When compared to other EV charging companies, a key differentiator for IPS is related to how it is focused on the consolidation of multiple assemblies to a single circuit board as part of the design-to-manufacture modules process. The company plans to drastically reduce the size of the modules by upgrading from IGBT to GAN and we believe this enhances the value proposition of the business.
As demand for EVs continues to increase, ancillary industries like charging stations have followed suit. The growth of the EV market had led to an increase in the number of companies that are focused on ancillary opportunities, and we believe a business needs to be differentiated to be a viable long-term player. By focusing on utility grid support, energy storage, vehicle charging, demand charge reduction, and other microgrid solutions, IPS has been able to differentiate itself from other operators that are focused on the EV and energy market.
Taking a Personalized Approach to Each Customer
IPS owns a patented and field-tested single source energy solution that was developed for commercial customers. We expect the personalized nature of each system to increase the number of clients that use IPS’ products and platform. When compared to other EV charging operators, we consider the personalized approach by IPS to be an important differentiator for the business which will support the growth of the business over the long-term.
By focusing on owning valuable intellectual property (IP), we consider IPS to be an acquisition target for a larger operator. The unique nature of the business and the proprietary technology that is owned by the company makes the story more attractive and believe our readers should be aware of the potential for the business to be acquired.
Due to the expectation for continued high demand from consumers, the market has rewarded companies with exposure to the EV and energy market with high multiples. We believe that IPS will be benefit from having exposure to the industry and will monitor the management team continues to execute on the EV charging market.
We believe future is bright for IPS and expect the business to record strong growth on a going forward basis and are of the opinion that the business has multiple potential growth catalysts. IPS seems to be flying under the radar and we expect this to change as the story continues to advance.
If you are interested in learning more about Indie Power Systems, please send an email to email@example.com with the subject “Indie Power Systems” to be added to our distribution list.
.Pursuant to an agreement between StoneBridge Partners LLC and Indie Power Systems Inc. we have been hired for a period of 90 days beginning November 22, 2021 and ending February 22, 2021 to publicly disseminate information about (IPS) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month for a period of 3 months. We own zero shares of (IPS), which we purchased in the open market. We plan to sell the “ZERO” shares of (IPS) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (IPS) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.