There’s probably a significant development around this. Entrotech has formed a JV with PPG and has entered this space themselves bypassing XPEL. That could probably explain why XPEL is now importing from Garware (cant be a coincidence since timelines coincide nicely). It could mean that the opportunity size here for Garware in its business with XPEL can be quite huge.
On the flip side, looks like XPEL might be understating its revenues from TSLA. XPEL claims Tesla revenue is just 5% of their sales while it is probably 25-35% as per this short-seller report (XPEL has fallen considerably of late). Tesla has recently introduced wraps from the factory which directly competes with PPF from the likes of XPEL. So XPEL could be expected to take a hit to its revenues if lot of people choose this option.
What it could mean for Garware – The new opportunity with XPEL could be bigger than I thought since they have lost their biggest supplier. XPEL however could face headwinds with its Tesla business but since Garware is starting from zero in this business with XPEL, it should still be a big positive.
Disc: Invested
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