Volta Trucks (VLTA) raised $260 million in a Series C funding round. The Stockholm-based company intends to use the funds to finance the development of its Volta Zero electric trucks. Reuters reports that the prototypes of the fully electric trucks will be unveiled in the middle of this year. VLTA shares fell 3.67% to close at $4.99 on February 18.
Volta Trucks develops vehicle charging stations. It also runs advertisements on the charging stations from which it generates revenues.
Production of the 16-tonne electric trucks is poised to begin this year. The $260 million will also support the development of Volta’s 7.5-tonne and 12-tonne electric trucks. Volta Trucks intends to develop 5,000 trucks at a plant in Steyr, Austria, in 2023 and plans to ramp up production to 27,000 cars annually by 2025.
According to Chief Executive Officer Essa Al-Saleh, the latest funding round provides the much-needed resources needed to achieve Volta’s goals and transition from a startup to a full electric trucks manufacturer. Volta Trucks’ order book already exceeds 5,000 vehicles valued at about 1.2 billion euros.
Earlier this month, Canaccord Genuity analyst Jonathan Dorsheimer reiterated a Buy rating on Volta Trucks with a $10 price target, implying 100.40%% upside potential to current levels. According to the analyst, the company’s unique charging and media business offers a unique opportunity for investors to gain exposure to electric vehicles and charging infrastructure. The analyst expects the charging stations and digital media to help drive the company’s revenue before the mass adoption of electric vehicles.
Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average analyst price target of $11.50 implies 130.46% upside potential to current levels.
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