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Volta: The Other Shoe Just Dropped

Apr. 04, 2022 7:43 AM ETVolta Inc. (VLTA)41 Comments


  • Volta warned of massive revenue misses only days after announcing executive departures.
  • The EV charging station company has limited flexibility to turn around the business with large losses and a small revenue base.
  • The stock valuation isn't appealing until Volta has an updated business plan and hits updated targets.
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Volta Free EV charging station in parking lot. Power to the electric vehicle concept.

Evgenia Parajanian/iStock Editorial via Getty Images

Despite several warnings regarding the EV charging station space, Volta (NYSE:VLTA) appeared the most promising business model in the sector. The company recently announced surprising executive leadership changes and the other shoe

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Stone Fox Capital (aka Mark Holder) is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 10 years as a portfolio manager.

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Comments (41)

I just read the proxy for grins. What a horrible little company and a despicable cast of characters. Volta will bleed out and go to zero. Purely an insiders get rich scheme cooked up during the 2021 stock bubble.
Stone Fox Capital profile picture
Do you really think it was a scheme? My view is just incompetence, but who knows.
@Stone Fox Capital I've exhausted my time to do research on this one. I don't have ay interest in it as an investment long or short.

The two Co-CEOs bailed right at the six month mark as a public company which allows them to sell their stock as non-insiders. I assume this is when the lock-up ended. In September, the registration statement was declared effective on 116 million shares and the stock immediately started to tank.

None of the insiders held their shares. They sold them ASAP. In my opinion, they knew the company was going to blow up but they continued to put out happy talk press releases.

My 2 cents..
Stone Fox Capital profile picture
Definitely an interesting take. Think they converted the Class B shares to Class A changing the voting control from 60% to 16%. The stock has been $3 or below since this move on March 28. At least, they weren't able to sell above $10.
Stone Fox Capital profile picture
Suffling management isn't a great sign...

-Volta (NYSE:VLTA) board made several key leadership appointments and new hires for driving the company's next phase of growth and operational success.
-The board appointed Vincent Cubbage as Interim CEO and hired Stephen Pilatzke as Chief Accounting Officer.
-The board's CEO Search Committee is formed and is actively engaged in a process to identify a permanent CEO.
-Current revenue chief and interim CEO Brandt Hastings has now been promoted to Chief Commercial Officer to capitalize on Volta's growing revenue momentum and market opportunity.
-The board will commence a search for a successor to Volta's current CFO, Francois Chadwick, in the coming weeks; he will be leaving the company on Aug.22, 2022 for pursuing another professional opportunity.
Preserve & Prosper profile picture
Just read the executive offices of VLTA, which were already depleted by resignations of the two founders and the CEO, are now virtually empty after the CFO, Chief Technology Officer, Chief People Officer and Chief Administrative Officer have all headed out the door.
That exodus kind of spells corporate doom to me, but perhaps if there are any Board members left they will try to save the company.
I wonder if there is anyone left to answer the phone?
Stone Fox Capital profile picture
@Preserve & Prosper
Corporate doom is very possible. Definitely keep watching from the sidelines.
Preserve & Prosper profile picture
@Stone Fox Capital Happily I have not been watching from the sidelines, I shorted VLTA a while ago. Now I wish I had shorted more!
Stone Fox Capital profile picture
Kinda funny considering were estimates were before the big cuts.

-Volta Inc. (NYSE:VLTA +20.0%) shares surged higher after offering an optimistic outlook for the company’s growth in coming years.

-The San Francisco-based electric vehicle infrastructure company reported a lighter loss than expected by Wall Street, while edging past revenue estimates by $120,000 to reach $8.4 million. Both figures were significant leaps from the prior year, adding to an expanded footprint for charging stalls.

-“We made continued progress against our strategy with total revenue growing 77%, media revenue up 73%, and total installed stalls growing 39% year-over-year,” Interim CEO Brandt Hastings said.
@Stone Fox Capital This Company has no chance at a path to profitability and everybody knows it. Their only hope is a buyout while they still have some cash. Otherwise, they'll end up like Carlotz (LOTZ) with no viable exit.
Stone Fox Capital profile picture
Haven't listened to the call yet, but the earnings release was very lacking.

-Q4 GAAP EPS of -$0.77 misses by $0.58.
-Revenue of $12.1M (+44.0% Y/Y) misses by $0.22M.
-Adjusted EBITDA was $30.7M loss, compared to $12.9M loss in the prior-year period.
-Cash and marketable securities were $262.3M as of December 31, 2021.
-First quarter 2022: Revenue in the range of $8 million to $8.5 million vs. consensus of $9.82M.
-Full year 2022: Revenue in the range of $70 million to $80 million vs. consensus of $74.27M.
@Stone Fox Capital, I have few question here. Honestly, i had huge expectation on Volta as an Independent EV charging station supplier and builder at North America. They are solely in charging business only. In fact, they did claim that they covered most of the areas and supplied the most compare to the EV car manufacturer itself. Could you enlighten me, on their EBITDA part?

As i could extract it is -624.84 and do you think they could cover up till positive value and their earning just 12M only. Indeed, for an enterprise it's hard to look at debt ratio but this value is extremely alot.

Besides, their EV exponentially reduced to ~200M. During the SPAC heat, i pumped alot yet none are rewarding though.

Looking forward to your clarity.

Besides, I couldn't find when is the warrant expiring date and do you think people would exercise with the current state of the company?

Without the warrants exercising at $11.50 (once seen as a SPAC weakness) to raise ~$165 million, Volta could now need to raise additional funds at these depressed levels.
Stone Fox Capital profile picture
Not sure fully understanding the question. EBITDA losses were $38M in the quarter and revenues are only suppose to be $8M in the current quarter. $VLTA expects fast growth in the next year, but the company has a long hill to climb to get to EBITDA positive.
The key takeaway is that everybody has been fooled by the management, which made tons of money with the IPO and now retires.
The business model is hard to make it profitable.
How much $ did Tortoise make off of Volta SPAC?
Stone Fox Capital profile picture
@Willow Point
As someone interested in buy the stock now why does it matter? If an IPO bombs, do you ask how much GS made off the public offering?
@Stone Fox Capital simple question.

How much money did Tortoise and it’s CEO, Vince Cubbage make from sponsoring deal?

Cubbage serves on Volta board of directors, so remains officer of company.
Stone Fox Capital profile picture
@Willow Point
The information should be in the business combination filing so please let us know.
Djreef1966 profile picture
Sounds like this company was set up to only make the founders rich - so they then could beat a hasty retreat with the loot.

In other words, a scam.
Stone Fox Capital profile picture
How are the founders getting rich with the stock at $3?
Djreef1966 profile picture
@Stone Fox Capital They dumped their shares at $12 like anyone trying to game the system would?
Stone Fox Capital profile picture
Where did they dump shares at $12?
Gee....who could have seen this coming. Another criminal enterprise where the execs cashed in and left a husk.
Stone Fox Capital profile picture
Where did the execs cash out?
@Stone Fox Capital The form 4s are public information, dated late march. Millions of shares for each exec. If you are going to pretend to be a financial firm, act like one. Hope that helps!
Stone Fox Capital profile picture
$VLTA wasn't even public last March so?
A lot (most) of these post-SPAC companies flat out lied during their SPAC marketing with ridiculous revenue projections. I'm glad I sold out of this months ago for just a 20% loss rather than an 90% one.
Stone Fox Capital profile picture
@Agency Man
Some did, some failed to meet targets, but a lot have hit targets.
kickered profile picture
@Stone Fox Capital Ok Mr. Underperformance. RBLX up +10.00% this morning.
Stone Fox Capital profile picture
$RBLX isn't even back to were the stock was on March 29.
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