[XR Martin]

Originally Posted by Halba12

Hi there. The market they 'own' is small. currently they have the following OEM deals


1. Ford GT 2016 & GT350 - these are their main volumes, legacy contracts. say around 3000-4000 wheels as stated. These are also winding down as old models

2. Ferrari- 2 OEM-s the volumes of these are 500 cars or 2000 wheels per annum - these are option only.
3. Renault Megane - This car is only 100 cars produced per annum. Option only, so around 30-40 cars or 200 wheels.
4. GT500 - option only. 500 cars, and maybe ~100 cars or 500 wheels.
5. Unnamed SUV - no volumes stated, unknown, say 500 cars or 2000 wheels per annum.


Total contracts ~7000 wheels drastically short of the hyped up expansion to 32,000 wheels. Half of this number is on production winding down, so say 5,000 wheels. This is because the OEM models production levels are tiny and they come with options and not all will take up the options as its not compulsory.


In conclusion i'd be very careful with this company's claims of revenue. Production is many times higher than actual sales. And what about profit? It makes losses- hasnt turned a dime since listing. Burning approx $25-30m per year. Market cap is nearly $600m at current prices, it has surged 60% from IPO of $2.60, which is very expensive.


And in terms of costs per wheel. I dont see any adoption happening anywhere at the price levels of $15K retail for carbon track package. Thats too high. Average performance cars are only $60-70k like the Ford GT500. The likes of Porsche make their own in house, as do a few others.

Gt500 is 5000 units per year