Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/proterra-inc" target="_blank" data-smartkarma-citation="entities:28185:1" rel="noopener">Proterra Inc (4121096Z US)</a>, run by former Tesla employee Mr. Ryan Popple, seems to be preparing to go public. However, in media interviews, Popple declined to disclose the date of Proterra’s IPO . In an interview with Blomberg early last month (<a href="https://www.youtube.com/watch?v=w6mmf6ixBNE" target="_blank" rel="noopener">Proterra CEO Brings Tesla Lessons to the Electric Bus Business</a>), Popple stated that it would  go public, but would wait for the right time to do so. Although the company’s intention of going public still remains at the stage of hiring bankers to process its IPO application, we looked into the company, its business model, and growth prospects, to understand if an IPO would be a good move for the company. We feel that Proterra, being run by a former employee of <a href="https://www.smartkarma.com/entities/tesla-motors-inc" target="_blank" data-smartkarma-citation="entities:20279:1" rel="noopener">Tesla Motors (TSLA US)</a>, would be aware of the Dos and Don’ts as an EV maker, and as such, is likely to make good progress in its business field. For now, we feel that:
- The company is innovative, with an interesting business model and product that appears ready to face competition in the market
- Proterra has the capability to execute its growth plans given the backing from strong players like GM and Daimler
- Electrification of buses makes more sense, given the (usually) fixed routes of operation for buses, which in turn makes development of charging solutions (which are the main barriers for the widespread use of EVs) a lot simpler. E-bus as a concept is likely to be more successful and the currently low market adoption rates presents a strong growth opportunity to players like Proterra.  
- However, the timeline of adoption of its product remains a key risk.
We go through the details below.

Proterra Inc (4121096Z US), run by former Tesla employee Mr. Ryan Popple, seems to be preparing to go public. However, in media interviews, Popple declined to disclose the date of Proterra’s IPO . In an interview with Blomberg early last month (Proterra CEO Brings Tesla Lessons to the Electric Bus Business), Popple stated that it would  go public, but would wait for the right time to do so. Although the company’s intention of going public still remains at the stage of hiring bankers to process its IPO application, we looked into the company, its business model, and growth prospects, to understand if an IPO would be a good move for the company. We feel that Proterra, being run by a former employee of Tesla Motors (TSLA US), would be aware of the Dos and Don’ts as an EV maker, and as such, is likely to make good progress in its business field. For now, we feel that:
- The company is innovative, with an interesting business model and product that appears ready to face competition in the market
- Proterra has the capability to execute its growth plans given the backing from strong players like GM and Daimler
- Electrification of buses makes more sense, given the (usually) fixed routes of operation for buses, which in turn makes development of charging solutions (which are the main barriers for the widespread use of EVs) a lot simpler. E-bus as a concept is likely to be more successful and the currently low market adoption rates presents a strong growth opportunity to players like Proterra.  
- However, the timeline of adoption of its product remains a key risk.
We go through the details below.

Proterra: The Tesla of Buses Hires Banks to File for an IPO