This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
Shares of EV truck and technology company Cenntro Electric (NASDAQ: CENN) gained as much as 56.7% in mid-day trading Monday. Shares of the small-cap stock lost some of those gains but still ended the day up 20.8%.
So what
Cenntro makes commercial electric utility vehicles, including box and flat bed trucks, vans, and terrain vehicles. Shares soared after Cenntro announced an acquisition today that will expand its capabilities in Europe. While a relatively small purchase valued at about $16.5 million, that amount represented more than 5% of Cenntro’s total market capitalisation heading into today’s trading.
Now what
Relative to Cenntro’s market cap, an acquisition that size would be like Tesla making an investment worth about $45 billion. That would be meaningful, and investors believe this could be meaningful for Cenntro’s growth plans.
Cenntro chairman and CEO Peter Wang said in a statement:
Through this acquisition, we gain a significant geographical advantage and the addition of key management personnel within the European region, unlocking significant global growth opportunities for the company.
The purchase of Tropos Motors Europe will allow Cenntro to offer more light-to-medium-duty commercial vehicles by adding a European customer base, as well as expand its assembly capabilities and distribution network. Commercial delivery and work vehicles are a niche for EV manufacturers that should continue to grow as companies work to lower their carbon footprint. With oil prices spiking at the same time today, investors are putting money in many EV manufacturers, like Cenntro, they think will have plenty of market demand to satisfy.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Why 1 small EV stock soared more than 20% today appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- 52-week low: Broker says the REA (ASX:REA) share price has 30% upside
- Why these 2 ASX uranium shares could be set for a boost this month
- Why is the Boral (ASX:BLD) share price trading at 20-month lows?
- This ASX share just rocketed 36% but is still CHEAP: expert
- Why this broker thinks the Flight Centre (ASX:FLT) share price is great value
Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns and recommends Tesla. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
from The Motley Fool Australia https://ift.tt/okxNIDm
Leave a Reply