(HCIC), (TSP) – Autonomous Trucking Company Plus Announces SPAC Agreement: What Investors Need to Know
A company hoping to disrupt the massive tractor-trailer market announced a SPAC deal on Monday, with plans to launch self-driving trucks in 2021.
The SPAC agreement: Additionally, formerly known as Plus.ai, announced a PSPC deal with Hennessy Capital Investment Corp V (NASDAQ: HCIC).
The deal values the company at an enterprise value of $ 2.47 billion and includes a PIPE of $ 150 million.
Plus’s shares will trade as “PLAVV” on the NYSE if the merger is approved. The current shareholders of HCIC will own 13% of the new company.
About More: Plus is working on low-cost, mass-production ready Level 4 autonomous driving technology for the long-haul trucking industry. 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 detection systems.
The company plans to launch its PlusDrive autonomous driving solution in 2021 with its partner FAW, the world’s largest heavy truck manufacturer. The companies will team up to mass-produce the FAW J7L3.
Plus SL4 is expected to increase fleet operating profits by 30% to 70%. The company cuts costs and can reduce carbon emissions.
Related Link: Exclusive: TuSimple CEO on Autonomous Semi-Trailers, Competition and IPO
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. Globally, the company targets a global freight market valued at $ 4 trillion.
In the trucking industry, there is a shortage of drivers and a high turnover of drivers. Rising insurance costs and low margins have also led to growing demand for future self-driving trucking capabilities. Two-thirds of the costs of the trucking industry are made up of labor and fuel.
“Self-driving trucking is going to change the world,” Plus said in his presentation.
Partnering with FAW in China gives Plus a large customer base.
In the United States, Plus has partnered with one of the largest private truck fleets for 1,000 unnamed units.
More financial: Plus has over 7,800 units pre-ordered from existing customers.
Plus forecasts revenue of $ 16 million for fiscal 2021 and $ 250 million for fiscal 2022. The company expects revenue of $ 1 billion by fiscal 2023.
Plus plans to deliver 3,144 units in fiscal 2021 and 3,878 in fiscal 2022.
By 2025, Plus plans to have a 7% market share in the self-driving 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% to $ 9.90 at last check.
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