Why Microvast Stock Is Charging Higher
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There is a big push to electrify American-made cars and trucks, yet the best way for investors to play the trend may be a tiny Houston, Tx.-based battery maker.
President Biden was in the Rose Garden on Thursday promoting a goal to have 50% of all cars sold in America emission free by 2030. The President says the future is electric. That is a lot of batteries.
Microvast Holdings (MVST) makes batteries, lots of them.
Most investors have never heard of Microvast. That’s fine. The company is small. It is also a special purpose acquisition company.
The SPAC came public in February via a blank check merger with Tuscan Holdings Corp. That deal valued the business at $3 billion. Shares ran up to $25.20 in early February only to later collapse to $7.83.
The stock is compelling now because the narrative is improving dramatically.
Electric vehicles are coming. Everyone knows that. And narratives drive stock prices.
President Biden got leaders from Ford ( (F) - Get Free Report), General Motors ( (GM) - Get Free Report) and Stellantis ( (STLA) - Get Free Report) to attend his White House shindig yesterday. The President says he will do everything in his power to get more EVs on the road.
Presidents have considerable power to shape investment trends.
Most of the batteries Microvast currently makes end up in commercial vehicles like buses, mining trucks and taxis. The company is vertically integrated with proprietary technology across all of the key battery components. It also has full high volume production facilities in China, and longstanding commercial and research relationships with businesses like Porsche Motorsport, Dana ( (DAN) - Get Free Report), and Oshkosh ( (OSK) - Get Free Report) according to an investor presentation. It is a real business.
Shares are also getting a lot of buzz again among retail investors.
Quiver Quantitative, an analytics firm, found a 193% increase in mentions at WallStreetBets, a popular online stock trading forum.
Shares popped Thursday to $10.47, a 20.6% gain.
Expect more gains in the weeks ahead as EV investing returns to favor both among professionals and retail investors. Microvast could rally back to $25.
