Markets

Why Microvast Was Soaring Today

What happened

Shares of Microvast (NASDAQ: MVST) were running 10% higher heading into noontime trading Monday as the maker of electric vehicle batteries continues to be the subject of bullish posts on the r/WallStreetBets subreddit.

So what

Microvast stock lit up last week after President Biden's Rose Garden speech saying he wanted half of all cars sold in the U.S. in 2030 to be electric. That was followed by more upbeat internet chatroom chatter, which pushed the stock 28% higher over the past week.

A WSB post on Reddit Friday touted Microvast's "solid partnerships" and "competitive advantage" over its peers. That got traders picking up its shares, causing the stock to rise.

Microvast factory

Image source: Microvast.

Now what

Microvast primarily makes lithium-ion batteries for commercial and specialty vehicles. Earlier this year it announced a joint development project with truck maker Oshkosh on future battery and technology development. Last month it said high-tech vehicle OEM eVersum was partnering with it to develop battery solutions for electric shuttles.

Microvast went public through a merger with special purpose acquisition company (SPAC) Tuscan Holdings and began trading on the NASDAQ exchange two weeks ago, ending its first day down almost 13% to $8.74 per share. The stock is up 46% since then, but as a newly minted meme stock, this EV battery maker is likely to be exceptionally volatile.

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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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