ZEV stocks rise after new EV deal. Buy alert for Lightning eMotors?

Highlights

  • Lightning eMotors (NYSE:ZEV, ZEV:US) stocks took off on Thursday, September 9, and continued to glide in green in the premarket hours on Friday.
  • Lightning eMotors is an electric vehicles manufacturer that focuses on specialty commercial for fleets.
  • Investors seem to have turned their attention to ZEV stocks following the announcement of its latest partnership with ABB (NYSE:ABB, ABB:US).

Lightning eMotors (NYSE:ZEV, ZEV:US) stocks took off on Thursday, September 9, and continued to glide in green in the premarket hours on Friday.

After climbing by over five per cent to close at a value of US$ 9.39 on Thursday, ZEV stock was trading at US$ 9.58 early on Friday morning (8.53AM EST).

Lightning eMotors is an electric vehicles manufacturer that focuses on specialty commercial for fleets.

Let us see what could have triggered this surge for Lightning eMotors stocks.

Also read: Is Gevo (GEVO) stock a buy post clean energy deal with Chevron (CVX)?

Why Lightning eMotors (NYSE:ZEV, ZEV:US)  stocks rose?

Investors seem to have turned their attention to ZEV stocks following the announcement of its latest partnership with electrical equipment and automation products supplier ABB (NYSE:ABB, ABB:US).

ABB announced on Thursday that it is partnering with Lightning eMotors for the supply of DC fast EV chargers.

As per the deal, ABB will be providing Lightning eMotors with its 20 kW to 350 kW DC fast chargers, which the EV maker will sell in its Lightning Energy division in Colorado under its own brand.

The chargers will be provided for commercial and government electric fleet vehicles.

Some reports, however, have pointed that Lightning eMotors stock performance could have something to do with a meme stock rally.

Also read: Kadmon (KDMN) stock catapults by 73%. To buy or not?

How can the ABB deal impact Lightning eMotors stocks?

The EV maker’s branch Lightning Energy is known for providing varied charging solutions for electric fleets. These services include hardware, installation, management software, financing options, among other things.

As a notable EV market player, this latest collaboration with ABB to expand its charging services is likely to boost its demand and operations. This, in turn, could impact its stock performance as well.

Lightning eMotors also recently joined forces with school bus manufacturer Collins Bus, a subsidiary of REV Group Inc. (NYSE:REVG, REVG:US) to build electric Type A school buses.

It is important to note that Lightning eMotors has been the target of an investigation headed by Portnoy Law Firm for possible securities fraud. On Monday, September 6, litigation firm Schall Law Firm said that it is investigating the case on the company’s behalf.

Bottom line

The EV maker saw its revenue surge by a whopping 580 per cent year-over-year (YoY) in the second quarter of 2021, amounting to US$ 5.9 million. The company also projected growth for the fiscal year of 2021, with a sales pipeline at US$ 1.29 billion.

However, investors should take note of the ongoing investigation when exploring Lightning eMotors for investment.

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