One of the main reasons people invest in technology firms is that they often forward radical new innovations. But in the case of LiquidPiston, the advancements are more nuanced. Here, the company takes an old platform — the rotary engine — and implements groundbreaking thermal efficiency improvements. Of course, the minor detail that prevents people from considering LiquidPiston stock is that it’s levered to a combustion platform. But you may want to hear out this compelling equity crowdfunding opportunity first.Source: Shutterstock
Yes, everyone in the markets is crazy for electric vehicles (EVs), and we’re not just talking about their performance metrics. With EVs, you’re talking about basically zero emissions on the road. And this runs counter to the concept of combustion engines. No matter how efficient this platform is, it will always require fossil fuels. Thus, it appears that if you invest in LiquidPiston stock, you’re being incredibly contrarian in a misinformed manner.
However, from a practical point of view, nothing could be further from the truth. You see, while combustion engines have been around longer than the sands of time, that is also in itself an asset. When you buy a traditional car, you’re buying at the peak of this platform’s innovation. If you go with an EV, you’re still buying relatively early in the technological S-curve.
However, the combustion engine is still remarkably inefficient, with average power units generating around 20% thermal efficiency. Thanks to LiquidPiston’s proprietary technology, though, the company claims it can improve efficiency by 30%. Not only that, it can make engines ten-times smaller and lighter — promoting paradigm-shattering cost efficiencies for automakers.
Now, you can see why many astute investors want to invest in LiquidPiston stock. But the implications go beyond the traditional automobile.
How LiquidPiston Stock Can Benefit From Electrical Integration
Although an efficient combustion-engine car could theoretically stem the tide of the mainstreaming of EVs, there’s just one problem: typically, technology moves societies forward, not backward. Over time, people will be buying more EVs, taking the sheen off combustion-engine investments.
However, the moment where EVs make up a significant portion of the global automobile market may be a long time coming. According to a report from the International Energy Agency, EVs accounted for 2.6% of international car sales in 2019. Thus, the dramatic rate of demand is deceptive because we’re talking about small number comparisons.
So, combustion engine cars will be with us for a while. And the improvement in this ready-made platform is what drives the narrative for LiquidPiston stock.
However, what many investors may not realize is that the underlying company supports EV progression rather than competing against it. As evidence, consider the recent announcement by Tesla (NASDAQ:TSLA), which declared that improving battery efficiency will soon enable the tech firm to develop a $25,000 EV.
Even then, $25,000 is a lot of money for many people, especially considering the present economic climate. Furthermore, several combustion-engine cars have several examples floating at or below $20,000. Thus, even with Tesla’s improvements, its cars are still priced out of the masses’ reach.
Nonetheless, combining the two technologies — LiquidPiston’s enhanced rotary engine and the EV platform — in a hybrid setup could yield holistic efficiencies. Here, the rotary engine will power the battery pack, doing away with the current bulky and pricey configuration. That alone could dramatically lower the price of hybrid EVs, truly making them accessible.
Moreover, LiquidPiston has integrated its engines into drones, which offers tremendous flexibility and capacity for military applications. You can read more about this exciting development on the company’s StartEngine equity crowdfunding profile.
Important Risks to Consider
As with any investing opportunity, risks abound. But with equity crowdfunding offers, the dangers to your capital are much more intense due to the unproven nature of startups. I’ve pointed out that most startups fail. Therefore, you should only invest in LiquidPiston stock money you can afford to lose if things go awry.
Specific to the company, it’s worth noting that while rotary engines feature fewer moving parts, there are reasons why this platform is not the industry standard. Historically, rotary engines consume large volumes of oil and are prone to reliability issues. And because most mechanics work on piston-driven engines, repairs require specialists, which can be very expensive.
Of course, LiquidPiston claims that they have addressed the setbacks of rotary engines with their innovative take. However, I would like to let the reader know about potential problems with this technology.
More importantly, LiquidPiston stock faces broader competitive threats from established players. And while the company doesn’t face direct competition — Mazda (OTCMKTS:MZDAY) abandoned its rotary-powered RX-8 — it faces irrelevancy from other innovations.
For instance, years ago, Toyota (NYSE:TM) developed an engine that achieved thermal efficiency of 38%, which is almost double the efficiency of the average combustion engine. Also, Toyota, Tesla and many others are conducting research and development on solid-state batteries. If a breakthrough is made, that means EV drivers can have much lighter cars and zero emissions.
Finally, if I’m reading this correctly, Mazda has a similar idea to LiquidPistion: use a rotary engine as a range extender for EVs. Again, I point this out not to bash the case for LiquidPiston stock, but to allow informed decisions for investors.
A Realistic Case for a Greener Future
That said, here’s the deal with pie-in-the-sky innovations: they’re usually just that. Sure, every once in a blue moon, you’ll come across a grand slam. But usually, progress is made through well-placed singles piled together in an accretive manner.
For LiquidPiston, that translates to building off the rotary engine and improving its efficiency for the enhancement of both electric and combustion cars. And while it’s not as sexy as solid-state batteries, the value to why you may want to invest in LiquidPiston stock is that this technology is proven.
To learn more about this opportunity, head on over to its StartEngine profile.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks
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