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Exro Technologies Is A Disruptor In The Electric Motor Industry

Dec. 01, 2020 1:03 AM ETExro Technologies Inc. (EXROF), EXRO:CA195 Comments
Sergio Heiber profile picture
Sergio Heiber
3.31K Followers

Summary

  • Exro offers a one of a kind solution that improves electric engine performance and lowers costs.
  • The company has focused its attention on capturing mobility applications by partnering with eight companies that are leaders in their respective mobility fields.
  • One of the partner agreements is now about to translate into commercial stage with others close behind.
  • The company's business plan sets the stage for high margin revenue due to low capex.
  • There's been a major upgrade in the company management and board of directors.

Exro Technologies (OTCQB:EXROF) [TSX:EXRO] is a clean tech designer of customized electric engine controllers. The company's coil driver technology allows for seamless real time switching between high torque/low speed and high speed/low torque configurations to maximize efficiency.

Exro did not invent coil switching technology, but they are the first to develop coil drivers solving how to apply the technology to allow motors to maintain even torque and power production regardless of the challenge. An easy way to understand the problem that Exro solves is to think about how your car engine loses power going up a steep hill. Exro technology seamlessly switches torque and power demand as required by the driver without sacrificing one for the other.

The company offers a first-of-its-kind patented solution which reduces energy demand and manufacturing costs by eliminating the need for a gearbox or for duplicate power sources. In contrast, Tesla's (TSLA) solution on their model 3 is two onboard motors, while Porsche utilizes two gear boxes.

Two configurations of motor windings. (Image courtesy of Exro.)

Two different coil configurations.

Source: Engineering.com courtesy of Exro

I am very optimistic about this company as Exro has a huge addressable market with a technology that can be applied to anything that has an electric motor. Exro is in the early stages of commercialization and has a new management team, a beefed-up Board of Directors, 8 partnerships with commercial stage readiness companies, and a new set of commercial prospects ready to be exploited and a business plan that will allow the company to operate on a high margin, low cost basis while it quickly scales. Please note that, although this company is based in Canada, all monetary figures in this article are in U.S. dollars.

Company Origin

Exro founder Jonathan Ritchey was on a family vacation at a remote cabin powered by a noisy generator that was

This article was written by

Sergio Heiber profile picture
3.31K Followers
I write about and invest in mostly early commercial stage companies that have a large TAM and zero to little direct competition. I will provide updates on companies that I introduce as long as the goalposts set by management are met. Of course, there are always unforeseen developments more often in the microcap world than otherwise and there are macro conditions that are beyond the control of company management. I'm also not always right but I like the risk/reward characteristics of investing in micro-caps.My articles are reflective of my investment interests and hopefully provide readers with ideas that they can further explore. I tend to be on the long side and generally abstain from writing negative or short themes. Besides my articles on SA, readers can find my work at MicroCapClub.com and StockPick.app

Analyst’s Disclosure: I am/we are long EXROF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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