December 4, 2021, 8:22

    Battery maker tests SPAC-like hype on wrong grid

    Battery maker tests SPAC-like hype on wrong grid

    MELBOURNE, Nov 26 (Reuters Breakingviews) – It turns out that there are some limits even for the racy valuations sported by companies in the electric-vehicle industry. Sure, Rivian Automotive (RIVN.O) is worth just shy of $100 billion even though it has only recently started selling its motors. But Australia-based Magnis Energy Technologies (MNS.AX), at least, has been handed the regulatory equivalent of a speeding ticket.

    The A$528 million ($377 million) battery maker on Monday told investors that its operations and stakes in partners could at some point potentially be worth as much as A$10 billion, some 24 times more than presently, based on where established rivals like CATL (300750.SZ) trade. Three days later, the Australian Securities Exchange forced a retraction.

    That might seem harsh considering the outlandishly optimistic hype investors in everything from Tesla (TSLA.O) to Joby Aviation (JOBY.N) are willing to buy into. But Magnis’ projects are in various stages of development and revenue in the 12 months to June was a mere A$170,000, per Refinitiv. Its current worth, at more than 3,000 times the top line, is already electrifying enough. (By Antony Currie)

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