WHITEFISH, MT / May 28, 2014 / Saleen Automotive Inc. (OTC: SLNN),
a specialty manufacturer of high performance vehicles, technical performance
parts, and lifestyle accessories, has significantly expanded the quality and
depth of its products. Over the past few months, management has focused on
revving up its business with new product launches, existing product
enhancements, and new team members.
In this article, we’ll take a look
at these initiatives and management’s progress in building long-term value for
the company’s shareholders.
Saleen’s Take on Tesla
Tesla Motors Inc. (NASDAQ: TSLA)
has made big waves in both the automotive and financial world with its
breakthrough vehicle line-up. With the best ratings for its class, the Tesla
Model S has become a blueprint for how electric vehicles should be designed.
The stock’s meteoric 117% rise over the past 52-weeks have also impressed many
investors skeptical of its ability to profit in the EV space.
In January, Saleen Automotive announced
its intent to produce a Saleen Tesla Model S sports car based on the iconic
experts speculated that the high-performance automotive company would focus
on new aerodynamics, new materials (e.g. carbon fiber), and perhaps some
changes to the vehicle’s suspension rather than tweaking anything it’s widely
praised for (e.g. its engine performance).
The Saleen Tesla Model S would sit
alongside the company’s existing retrofitted high-performance vehicles,
including Ford Inc.’s (NYSE: F) Mustang, General Motors Inc.’s (NYSE: GM)
Chevrolet Camaro, or Fiat SpA’s (OTC: FIATY) Dodge Charger. The firm’s other
products include its Saleen S7 supercar, which was prominently featured in the
movie Need for Speed in March 2014.
Better Materials, Lower Costs
Saleen Automotive has also been
busy improving the quality of its new and existing product lines. With upcoming
aesthetic and performance improvements in its pipeline, the company is being positioned
to increase sales by differentiating itself from the competition. The company is also reducing costs by
bringing components in-house, in order to ultimately drive long-term
In February, the company
announced an agreement with AC Propulsion to assist with the technology and
implementation of its EV powertrains and batteries. As a key technology
provider to Tesla in the past, AC Propulsion specializes in alternating-current
based drivetrain systems for electric vehicles. These systems are ideally
suited for maximum efficiency and high performance.
More recently, the company
announced an exclusive agreement with BASF SE (OTC: BASFY) to exclusively
use its products at its campus in California. The agreement with enable the
firm to develop all new colors using co-developed technology and Saleen’s
state-of-the-art facility, while helping lower costs by enabling the company to
bring paint under its roof rather than subcontracting to someone else.
Building a Better Team
Saleen Automotive Inc. was already
founded by one of racing’s legends, but that’s not stopping the team from
adding more fuel to the engine. In May, legendary driver and businessman Joe
to join its Board of Directors to provide key technical and business
advice. Mr. Amato’s accomplishments on the track are rivaled by his
high-performance auto parts distribution business.
Before that, the company also
added a world-class advertising agency called Havas Edge to create a
nationwide advertising campaign. Havas is the largest integrated full-service
direct response agency in the U.S., using data and analytics to drive results
for its clients. The addition of the advertising firm represents a key
partnership that could drive brand awareness higher over the long-term.
The combination of Board of
Director experience and strategic partnerships should continue to assist the
company in its efforts to expand brand awareness, build better products, and
ultimately generate higher revenues and profits. In particular, Mr. Amato’s
presence on the Board of Directors also represents a strong vote of confidence
in the company and its management team.
Saleen Automotive Inc.’s efforts
have already resulted in some improvements to its top- and bottom-line financial
results. Looking at its core Vehicles & Parts revenue, the company
reported a 77.1% increase to $1,076,153 during the three-month period ended
December 31, 2013. Management attributed the gains to higher vehicle sales from
the addition of new dealers and expansions with existing dealers.
Investors in the high-performance
vehicle or electric vehicle space may want to keep an eye on the stock over the
coming months. With new products, product enhancements, and management talent
added to the mix, the company could start to see its business accelerate both
operationally and financially over the coming quarters if management is able to
continue to execute on its plans.
- Company Website
- Recent SEC Filings
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SOURCE: Emerging Growth LLC