Investors can’t seem to stay away from electric vehicle (EV) stocks lately, thanks to a huge IPO (initial public offering) by the Rivian firm (NASDAQ: RIVN) and plenty of favorable news from other EVs companies. Today, SPI Energy (NASDAQ: SPI) is benefiting from this uptick, with shares up 17 percent. Trading volume is ten times larger than the average everyday trading volume of the SPI stock at the time of publication.
However, there is more to story than just the general buzz around electric vehicles. So, why are investors so keen on this micro-cap firm with a market cap of merely $171 million? Let’s look more closely at some of the SPI stock’s company-specific catalysts.
The SPI Stock Is Soaring Due to Two Catalysts
EdisonFuture, a wholly-owned affiliate of SPI Energy, is of particular relevance to SPI stockholders. The EF1-T electric pickup truck from EdisonFuture will be unveiled at tomorrow’s highly awaited Los Angeles Auto Show. During the presentation, interested buyers will also be able to make vehicle reservations. Xiaofeng Peng, who serves as the chairperson and Chief Executive Officer of the SPI Energy, was particularly enthusiastic about the show’s potential:
“With industry influencers, automotive enthusiasts, and consumer purchasers in attendance, LA Auto Show provides an excellent platform for promoting the next-generation technology that powers our EF1-T electric pickup truck.”
EdisonFuture’s initial product in the last-mile delivery vehicle and electric pickup truck industry is the EF1-T e-pickup truck. The EF1-T will not only be totally electric, but it will also run-on solar power, allowing it to charge continually when in the sun. The EF1-T’s base variant will produce 350 kilowatts as well as 470 horsepower.
The accessible market for the trucks is in great demand, according to supporting statistics. Around 2.9 million pickup trucks got sold in the United States in 2020, accounting for 20% of the total vehicle market. According to Cox Automotive, nearly 40% of people in the market for the pickup truck want to purchase an electric truck. Furthermore, the worldwide last-mile delivery market is expected to reach $18.7 billion in 2020. This value is predicted to rise to $62.7 billion by 2027.
In addition, SPI Energy said today that it will issue $4.21 million in convertible promissory notes to the Streeterville Capital, a Utah-based limited-liability company. A firm or an individual can use promissory notes to be a lender. These notes have a ten percent annual interest rate and a maturity date of November 11, 2022. At a price of $20 per share, the whole amount of notes issued can be exchanged into ordinary shares of the SPI stock. In comparison to current pricing, such conversion price indicates a 180 percent increase.