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Energy & Critical Metals

SPI Stock Is Surging Today Thanks to a Big Electric Vehicle Catalyst

Following a massive initial public offering (IPO) by Rivian (NASDAQ:RIVN) and plenty of positive news coming out of other electric vehicle (EV) companies,…

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Following a massive initial public offering (IPO) by Rivian (NASDAQ:RIVN) and plenty of positive news coming out of other electric vehicle (EV) companies, investors can’t seem to stay away from EV stocks lately. Today, shares of SPI Energy (NASDAQ:SPI) are benefitting from this boom, trading higher by 17%. At the time of writing, trading volume is a whopping 10 times greater than the average daily trading volume of SPI stock.

Source: Shutterstock

However, there’s more to this story than just general excitement in the EV space. So why are investors suddenly interested in this micro-cap company with a market capitalization of only $171 million?

Let’s take a closer look at some company-specific catalysts boosting SPI stock today.

The 2 Catalysts Sending SPI Stock Soaring

Investors in SPI stock are particularly interested in EdisonFuture, which is a wholly-owned subsidiary of SPI Energy. EdisonFuture has plans to unveil its EF1-T e-pickup truck during tomorrow’s much-anticipated Los Angeles Auto Show. Additionally, interested customers will be able to place reservations for vehicles during the show. Xiaofeng Peng, chairman and CEO of SPI Energy, was particularly excited about potential prospects the show could bring:

“With industry influencers, car enthusiasts, and consumer buyers in attendance, the LA Auto Show provides a tremendous platform to bring awareness to the next-generation technology powering our EF1-T e-pickup truck.”

The EF1-T e-pickup truck is EdisonFuture’s first product in the electric pickup truck and last-mile delivery-vehicle sector. On top of being entirely electric, the EF1-T will also utilize solar power, which will allow the truck to continuously charge while under the sun. The standard model of the EF1-T will boast power of 350 kilowatts and 470 horsepower.

Supporting data shows the addressable market for trucks is in high demand. Approximately 2.9 million pickup trucks were sold in the U.S. during 2020, representing 20% of the entire American vehicle market. Nearly 40% of consumers in the market for a pickup truck want to buy an electric pickup, according to Cox Automotive. Additionally, in 2020, the global last-mile delivery market reached a value of $18.7 billion. In 2027, this figure is expected to balloon to $62.7 billion.

Furthermore, SPI Energy also announced today that it would be issuing $4.21 million of convertible promissory notes to Streeterville Capital, a limited-liability company (LLC) based in Utah. Promissory notes can enable a company or individual to become a lender. These notes carry a 10% interest rate per annum and have a maturity date of Nov. 11, 2022. The entirety of the notes issued can be converted into ordinary shares of SPI stock at a price of $20 per share. That conversion price represents an upside of 180% compared to current prices.

On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Author: Eddie Pan

Energy & Critical Metals

Stellantis Inks Agreement With Factorial Energy To Develop Electric Vehicle Batteries

Stellantis NV (NYSE: STLA) announced this morning the joint development agreement made with battery maker Factorial Energy. The agreement aims to
The…

Stellantis NV (NYSE: STLA) announced this morning the joint development agreement made with battery maker Factorial Energy. The agreement aims to jointly develop the latter’s high-voltage traction solid-state battery technology.

“Our investment in Factorial and other highly recognized battery partners boosts the speed and agility needed to provide cutting-edge technology for our electric vehicle portfolio,” said Stellantis CEO Carlos Tavares.

While no specifics and financial details have been shared related to the agreement, the automaker disclosed that it entails a strategic investment into the battery company.

The battery technology involves the proprietary Factorial Electrolyte System Technology, leveraging on solid electrolyte material. The company claims it is “safer than conventional lithium-ion technology, extends driving range, and is drop-in compatible for easy integration into existing lithium-ion battery manufacturing infrastructure.”

The agreement comes a month after the Massachusetts-based battery maker signed a similar agreement with Hyundai Motor Company with the goal of integrating the battery technology in Hyundai electric vehicles.

Stellantis last traded at US$17.53 on the NYSE.


Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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Author: ER Velasco

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Energy & Critical Metals

PPSI Stock: 14 Things to Know as Pioneer Power Squeezes 50% Higher

Electric vehicle (EV) names have been catching momentum the past few months, and today it looks like a new name has decided to join the party. This morning,…

Electric vehicle (EV) names have been catching momentum the past few months, and today it looks like a new name has decided to join the party. This morning, shares of Pioneer Power Solutions (NASDAQ:PPSI) soared as high as 50% during premarket trading. Earlier this month, the EV charging company launched three charging products designed to maximize range.

Source: Virrage Images / Shutterstock.com

Additionally, PPSI stock is currently ranked #1 on Fintel’s Short Squeeze Screener, with a score of 99.4 out of 100. Within the screener, 100 means a short squeeze is very likely and zero means a short squeeze is very unlikely. Furthermore, the score is based on several factors, such as short interest, borrow rate and volume.

Let’s dive into some key highlights about PPSI stock.

PPSI Stock: 14 Things to Know

  • Shares of PPSI stock have increased by 180% over the past month.
  • The designer and manufacturer of electrical equipment serves industrial and commercial markets in the U.S.
  • The company trades at an $89 million market capitalization and reported revenue of $5.7 million last quarter.
  • Additionally, Pioneer Power Solutions launched three new products this month: the E-Boost G.O.A.T (generator on a truck), the E-Boost Mobile and the E-Boost Pod.
  • The E-Boost G.O.A.T. is a truck-mounted generator that can provide on-demand charging at any convenient location.
  • The E-Boost Mobile is a trailer-mounted charging solution that capitalizes on mobility. It can be used at large events to service charging needs, such as sports gatherings.
  • The E-Boost Pod is a stationary charging station that utilizes DC Fast Charging (DCFC). Impressively, the Pod can charge two vehicles simultaneously and can also be used as a generator during emergency situations.
  • These new products focus on portability and mobility, seeking to eliminate “range anxiety.”
  • Geo Murickan, president of Pioneer, believes that the adoption of EV vehicles is “accelerating at a pace faster than EV charging infrastructure development can service. The increasing number of electric vehicles will require mobile charging capability to go where the need is. As a result, there are unique opportunities to fill the gaps and establish a market capability to service the coming massive introduction of EV vehicles.”
  • At the end of October, short interest was 32,000 shares.
  • However, by mid-November, short interest had jumped 5,000% to 1.6 million shares.
  • Indeed, 1.6 million shares comprises 40.9% of PPSI stock’s total float.
  • Additionally, the borrow-fee rate is currently 82.08%.
  • It would take 2.47 days to cover all of the shorted shares.
  • On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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    Energy & Critical Metals

    The importance of power flexibility to reach net zero

    We need to drastically increase flexibility within our power systems to ensure sufficient renewables integration and achieve the world’s net zero pledges…

    We need to drastically increase flexibility within our power systems to ensure sufficient renewables integration and achieve the world’s net-zero pledges and Paris Agreement goals.

    This was one of the core sentiments expressed by Enrique Gutierrez, Analyst at the International Energy Agency, in his session at Enlit Europe.

    According to Gutierrez, flexibility plays a key role in reaching emissions targets and how the world is tracking on the road to net zero.

    Enrique Gutierrez, energy analyst, IEA, France

    “Progress has been made since the Paris agreement, with countries announcing their zero pledges at COP26 in Glasgow. However, we need to accelerate the deployment of clean energy.”

    The International Energy Agency (IEA) created various scenario’s to track the world’s decarbonisation progress, as well as to measure what still needs to be done.

    Solar and wind will lead the generation space. However, the Net Zero Emissions by 2030 scenario requires around 1000GW of solar and wind to meet decarbonisation and energy access goals.

    Gutierrez: “Adding this amount of renewable energy will radically change the way we operate our system.”

    Across the various scenarios, variable renewables take the lion’s share in generation supported by dispatchable low carbon fuels

    Image credit: IEA

    According to Gutierrez, there needs to be an ambitious and dramatic increase in installed capacity in order to meet the net-zero goals. This, in turn, will require a rapid increase in investments.

    “One of the key areas requiring investments is grids – which will be a key enabler of the flexibility requirements to allow the increase in variable renewable energy.”

    Image credit: IEA

    Achieving flexibility

    Gutierrez explained that in order to transform power systems and increase renewables, flexibility is vitally important. In order to cover flexibility requirements, the world can expect a change in the generation matrix to ensure a variety of available resources.

    “Coal will be displaced although it will continue to play a role in terms of flexibility. New technologies such as batteries and demand response will kick in and interconnections will play a much more significant role in balancing the power system.

    “Of course, to enable the interconnections, we need investments in grids and networks to support inter-regional trading.”

    China as an example. Image credit: IEA

    Gutierrez emphasises the importance of preparing markets for the participation of these new technologies and renewable resources in order to drive deployment and ensure remuneration for the value they provide to the system.

    As renewable capacity increases, another key consideration to be addressed is maintaining system inertia – which is key to stability, said Gutierrez.

    “We need to update practices and regulatory frameworks to incentivize the right mix of technologies in the power system”.

    In terms of systems and technologies, Gutierrez explained what is required depending on the amount of variable renewables integration.

    • With +- 60% share of instantaneous renewable penetration, more stability can be guaranteed by maintaining some conventional generation rotating machines.
    • With higher variable renewable deployment, +- 80% penetration, new market or response services can be introduced to keep the system in balance.
    • In systems with 80% + of renewable integration, technology or asset-based solutions become key. These include synchronous condensers as well as developing grid forming capabilities such as batteries.

    Many of these solutions are in the R&D phase, however, deployment at scale still needs to be understood properly in a way that minimises cost, said Gutierrez.

    Another source of flexibility will be interlinking to other parts of the energy sector, such as the planned interlinking between the gas and electricity grid, which, according to Gutierrez, is becoming more critical.

    “Gas will provide a significant role in providing flexibility in the short term, so we need a greater understanding of the flexibility that can be provided by the gas grid that can be relied upon by power system planners to cope with seasonal fluctuations.”

    Image credit: IEA

    To ensure flexibility, said Gutierrez, we will see an increased focus on demand shaping to cope with and reduce peak loads, as well as smart charging.

    As transport electrifies, smart charging will become more important to ensure system savings, however, to achieve this successfully, Gutierrez recommends closer policy coordination between sectors providing appropriate pricing signals.

    Gutierrez concluded by emphasising the need to shift our understanding of the power system, from a traditional centralised system to a new decentralised system.

    “This requires demand response in buildings, transport and also using the capabilities in variable generation and ensuring we have a better-interconnected system to enable coordination in a secure manner.”

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