In September 2020, BEEM announced a $2MM order for 30 EV ARCs from Electrify America, or an average price of $66.7k per unitĭespite this profitability profile, BEEM says, “We have assumed in the past, and continue to assume, that our sales will increase and will, as a result, reduce the impact of our per unit fixed cost contributions.”, implying that revenue growth will improve gross margins.In September 2018, BEEM received a $3.3MM order for 50 EV ARCs from New York City, or an average price of $66k per unit.
What we see here is that GAAP gross profits for the “average” and “least profitable” EV ARCs are 4% and -8%, respectively – this is driven in part by what we would view as a large portion of variable costs with volume-based fixed cost allocations.Īs an aside, our analysis suggests that some of BEEM’s largest orders have been for the “least profitable” EV ARC, based on back of the envelope math: Below, from its 2018 10-K, are two tables which outline the cost of goods for two versions of the EV ARC:
Very few companies we have analyzed have been so kind as to provide unit-level cost economics, but BEEM does. “All the time our customers ask us, ‘How do you make money doing this?’ The answer is simple – volume.” These factors lead us to assign a $12.49 price target to BEEM’s stock, down ~82% from current levels. In this report, we explain our views on BEEM’s unprofitable products, its falling revenue outlook, disappearing forward-looking disclosure, excessive executive compensation, and troubling management histories. We also believe that management quality remains unchanged from the Noble days. We believe that BEEM’s rocket ship stock performance is the result of investor optimism about the renewables space magnified by price insensitive ETF purchases of BEEM stock, but that this excessive excitement for BEEM is largely unwarranted.
#Beem stock price plus
The reverse merger history plus the 1460% stock price performance over the last year caught our eye. The EV ARC line includes a frame, panels, and battery to which a purchaser can connect an EV charger of their choice:īEEM is the product of a 2010 reverse merger into a shell company known as Casita Enterprises. BEEM’s primary product is the Electric Vehicle Autonomous Renewable Charger (EV ARC), which is effectively a carport with solar panels mounted on top.
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