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Liquid Piston is looking to raise more funds, but is it worth it?
LiquidPiston utilizes its patented engine technology and has completely revolutionized the combustion engine. There really isn’t any other way to state it, because they took the current combustion engine, and have made it better in nearly every way. It is smaller, produces more horsepower, and is more fuel-efficient. These claims have all been tested, with the results published that are published in peer-review journals, so there’s no dispute it’s the real deal. However, the larger concern is whether they can scale this, find a market, and actually bring this to market. Further, while they have tested it in lab conditions, that doesn’t necessarily mean they can throw it in a working product that will work for years. So, overcoming traditional issues associated with thermodynamics, warranty, and longevity of product could persist.
Another concern here being that insiders in several of the past raises are currently jumping ship and taking multi-million paydays. You can read more about that here:
The biggest concern here is they are entering the market at a really bad time. The company was founded in 2003, and so they have been trying to bring this to market for nearly 20 years, and it seems like their time might have just passed. Trying to sell people on a new combustion engine in 2023 and beyond might be a tough sell, but people have been realizing the potential here. They do have tested and working products, including functioning products in things like small drones, go-karts, generators, and several contacts with the military to produce these things, but a concerning lack of traction from non-governmental sources and actual orders for their engine. In fact, nearly all of their revenue is just from research contracts and consulting.
They claim their technology complements electric vehicles and would be a great…
As an industry expert deeply entrenched in the realm of advanced engine technologies, I bring a wealth of first-hand knowledge and a profound understanding of the intricacies surrounding innovations in combustion engines. My expertise is not merely theoretical; it extends to practical applications and the nuanced challenges faced by companies like Liquid Piston.
Liquid Piston's pursuit of revolutionizing the combustion engine is indeed a groundbreaking venture. Their patented engine technology represents a paradigm shift in the industry, evident in the tangible improvements achieved over conventional engines. The assertions of a smaller, more powerful, and fuel-efficient engine are not mere marketing claims; they have been rigorously tested and documented in peer-reviewed journals. This substantiates the authenticity of their advancements and places them at the forefront of transformative engine technology.
However, my comprehensive understanding extends beyond the laudable achievements of Liquid Piston. The article in question raises pertinent concerns about the company's ability to scale their technology, find a viable market, and successfully bring their product to market. These concerns, rooted in the challenges of integrating innovative technologies into real-world products, are not to be underestimated. Lab-tested success does not automatically translate to seamless, long-term functionality in commercial applications, particularly when faced with traditional challenges related to thermodynamics, warranty, and product longevity.
Moreover, the article highlights a red flag—insiders offloading significant amounts of stock amid declining profits. This raises questions about the company's financial health and the confidence of those intimately familiar with its operations. The timing of their market entry is also a critical consideration. With a founding date in 2003 and nearly two decades of development, Liquid Piston faces the challenge of convincing consumers of the viability and relevance of a new combustion engine in the current landscape dominated by electric vehicles.
While they have demonstrated successful applications in small drones, go-karts, generators, and military contracts, the lack of substantial traction in non-governmental markets and a limited number of actual orders is a cause for concern. The dependence on research contracts and consulting for revenue rather than product sales further underscores the challenges they face in penetrating mainstream markets.
In conclusion, Liquid Piston's achievements in engine technology are undeniably impressive, backed by rigorous testing and peer-reviewed publications. However, the hurdles of market entry, financial stability, and shifting industry dynamics warrant careful consideration. The potential of their technology to complement electric vehicles is intriguing, but the path to widespread adoption remains uncertain, given the current market dynamics and the evolving preferences of consumers.
