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Highlights
- Volcon could use the money from the initial public offering (IPO) for engineering costs associated with the development of vehicles like Beast and Stag.
- After the public debut, the VLCN stock caught investors’ attention and surged massively.
- Established in October 2020, Volcon makes four-wheel and two-wheel off-road electric vehicles.
The Texas-based off-road electric vehicles startup Volcon Inc. became a publicly-traded company on Wednesday, October 6, and the shares surged on their first day of trading. Trading on the Nasdaq Stock Market, Volcon priced its stock’s initial public offering on October 5 at US$ 5.5 per share.
After debuting under the stock symbol VLCN, the stock opened at US$ 9.01 apiece and jumped to a high of US$ 15.5 per share during the trading session. At market close, the VLCN stock closed at US$ 10.86 apiece, after a surge of 97.5 per cent.
Established in October 2020, Volcon makes four-wheel and two-wheel off-road electric vehicles. It manufactures utility terrain vehicles and motorcycles and differs from ATVs as they can seat multiple passengers side by side. In addition, Volcon's vehicles are capable of hauling equipment and supplies.
Is Volcon (VLCN) stock a buy?
The public debut comes just weeks after Volcon rolled out its first commercial vehicle, which will be known as Grunt. It is an all-electric motorcycle with a 100-mile range and the starting price is US$ 7,995 per unit.
As electric vehicles are becoming increasingly popular, Volcon could attract customers and potential investors who believe in the rapidly evolving sector.
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Volcon could use the money from the initial public offering (IPO) for engineering costs associated with the development of vehicles like Beast and Stag. The company is aiming to start delivering the Stag UTV in 2022 and the longer-range Beast UTV in 2023 and Grunt's smaller version, Runt, in the first quarter of 2022.
In June 2021, Volcon secured US$ 17.5 million in funding to expand product lines and boost its growth. Before that, the electric vehicle-maker had raised US$ 4.5 million in seed funding in December 2020.
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Bottom line
Electric vehicle companies are expected to grow in the future and countries are looking to cut carbon emissions. Volcon could expand in the future as it is already working on building its manufacturing facility and headquarters on a 53-acre property.
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Apart from the manufacturing facility and headquarters, Volcon is looking to build a development and testing facility and a customer experience center.
