Hyliion: Sell On ATM Overhang, Competitive Pressures, Commercial Viability Concerns

Hyliion Holdings Corp. reported better-than-expected Q2 results and raised full-year revenue guidance. In addition, the company projected lower near-term cash usage than previously anticipated. However, cash burn is likely to increase very significantly next year as the company prepares to resume additive printer purchases in order to ramp up KARNO production. As a result, I expect Hyliion to commence sales under the recently established up to $100 million ATM offering sooner rather than later. Reiterating Sell rating due to ATM overhang, competitive pressures, and persistent concerns regarding the commercial viability of the KARNO solution. Hyliion Holdings is working on the commercialization of its fuel-agnostic KARNO linear.