Shares in Carbon Revolution jumped 19 per cent on Friday after the lightweight wheel maker said demand for electric cars had led to its sales more than doubling in the last three months.

Carbon Revolution last year said it would spend $72 million to develop a line of wheels that were much lighter than traditional aluminium types.

In an almost immediate pay-off, Carbon Revolution said it had more than doubled sales in the first quarter of the 2022 financial year compared with the previous three-month period.

Quarterly revenue topped $11.4 million, a jump of 82.6 per cent from the previous three months.

CEO Jake Dingle attributed the growth to electric car demand.

“The global transition to electric vehicles is driving demand, where customers are looking to benefit from the 40-50 per cent weight savings of carbon fibre, over metal wheel equivalents, to deliver range extension on their EVs,” Mr Dingle said.

Carbon Revolution raised the $95 million in two components: a 1 for 4.38 rights issue to raise $53.5 million, and a $41.6 million institutional placement, all priced at $1.60 per share.

Shares in Carbon Revolution closed 19 per cent higher at $1 on Friday as a result of the quarterly results, though prices remain well shy of the highs touched in 2020 before COVID-19.

The strong results came as Carbon Revolution rides a wave of demand, particularly from the US, where demand for electric vehicles is rising faster than in Australia.

Most automotive manufacturers are investing heavily in expanding their electric vehicle line-ups, in an industry where Elon Musk’s Tesla is the pioneer as a pure-play, electric vehicle maker.

With US manufacturers seeking a competitive edge, Carbon Revolution late last year struck supply agreements with General Motors for the Chevrolet C8 Corvette Z06 & Z07 models and the Geelong-based company said it is on course to ramp up supply to meet those orders.

Carbon Revolution did not provide a sales forecast for the rest of the year, but said it was “pleased with the short-term order book”.

However, Carbon Revolution did highlight COVID-19 impacts facing the global automotive industry.

The industry is being hampered by ongoing global supply shortages for semiconductors and other raw materials, while general global supply chain constraints also continue to impact global car production, Carbon Revolution said.

The firm also said it is also being impacted at a local level as COVID-19 cases spike. The company said sick and isolation leave since the restart of production on the 10th of January is high.

Extracted in full from: Electric car demand drives Australian wheel company to new highs (