The sustainability trade should be more than just a fad. It’s a conscious decision to profit from an investment with a real future. Ayro (NASDAQ:AYRO) is part of this movement, and owning AYRO stock is making a statement of conviction in the zero-emissions objective.
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Sure, Ayro isn’t by any means the only electric vehicle manufacturer on the market. Indeed, it’s neither the biggest nor the most famous name in this niche. That, however, means that AYRO stockholders could see explosive price action as the company grows with the electric-vehicle market itself.
Unlike the ultra-famous Tesla (NASDAQ:TSLA), Ayro is off of most traders’ radars. And unlike TSLA stock, AYRO is still low-priced. Plus, Ayro is rapidly expanding its presence in a city that’s essential to the electric vehicle market.
AYRO Stock at a Glance
Investors need to understand that AYRO stock isn’t for everyone. Because it’s a low-priced stock, AYRO is subject to volatility. However, volatility can benefit traders with good timing.
We’ve already witnessed this phenomenon in action this summer. The AYRO share price had traded in a range from $2.50 to $3 for much of June. In early July, the market proved once again that big moves can happen quickly and at any given moment.
From July 1 to July 6, AYRO spiked from $2.75 to more than $7 at one point. It was a stunning move that to some extent reflected and was influenced by the strong move in TSLA stock.
By July 9, AYRO had cooled off somewhat and was back near the $6 area. Still, the momentum is undeniable and the bulls should be encouraged to see the market taking notice of this zero-emissions contender.
Specializing for Success
Unlike Tesla, which is often known for fancy-looking vehicles, Ayro chose to specialize in more practical zero emission vehicles. It’s a savvy move as there’s no point in trying to go head to head against a bigger and better-known company like Tesla.
It’s a niche business model with the target demographic comprising school campuses, government entities, hotels and resorts, and the food, beverage, and retail industries. Beyond turning a profit, Ayro seeks to help its clients to “eliminate volatile fuel storage and CO2 Emissions and reduce noise signatures by up to 75%.”
Thus, Ayro could be considered much more targeted than Tesla. Sure, Tesla CEO Elon Musk wants to show the world that he can build electric trucks as well as cars. But Ayro’s vehicles have a practical aspect that could strongly appeal to businesses and government agencies.
For instance, Ayro claims to offer electric vehicles with fewer moving parts and asserts that these vehicles are “up to 50% less costly to maintain.” Moreover, Ayro’s vehicles are specially designed to “traverse streets, narrow passages and campus walkways.” You can’t get much more specific than that, and this could be a good thing for Ayro and its stakeholders.
Expansion in Austin
It made the headlines when Musk announced, with the usual pomp and circumstance, that Tesla plans to build a so called “giga-factory” in Austin, Texas. Upon that announcement, there was talk that Austin is becoming a hub of activity in the electric vehicle industry.
With much less fanfare, Ayro announced that it will complete the expansion of its own factory in Austin. You might not call it a “giga” factory, but the expansion from 10,000 square feet to 24,000 square feet is at least “mega.”
Ayro CEO Rod Keller deserved to borrow the spotlight from Musk for a moment as he described the difference this expansion will make in terms of production capacity:
Our previous facility was only capable of producing up to 200 vehicles per month … The new manufacturing facility was designed to allow us to handle up to 600 electric vehicles per month, representing a 200% increase in production against a 140% expansion of floor space.
Those numbers might not impress a bigwig like Musk. However, they should make an impression on anyone seeking to capitalize on the zero emissions market.
The Final Word
The zero emissions electric vehicle industry has strong growth potential. We’ve all seen this growth reflected in the more famous TSLA stock. AYRO stock could be the next one to make the headlines. In a market that’s already niche, Ayro’s decision to specialize and expand is timely and potentially transformative.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.