SPI Stock News: Why SPI Energy Is Surging 700% Today

SPI Energy (NASDAQ:SPI) looks hotter than the sun Wednesday. Big news from the tiny solar company has SPI stock up more than 700% in intraday trading. Here is what investors need to know.

Solar energy panels are arranged in a green field under a sunny sky.

Source: Diyana Dimitrova / Shutterstock.com

SPI Energy spends most days flying under the radar. With a headquarters in Hong Kong, the company is focused in the solar industry. It markets photovoltaic systems for residential, business and utility customer, as well as its own suite of solar projects that sell electricity to power companies.

Importantly, solar stocks have been hot this summer as individual and institutional investors continue to embrace environmentally friendly equities. Additionally, proposals from former Vice President Joe Biden stand to benefit the space.

However, news on Wednesday from SPI Energy is even bigger than that catalyst. The company just announced that it will launch EdisonFuture, a wholly owned subsidiary, out of Silicon Valley. Why do investors care? You guessed it. EdisonFuture plans to design and develop its own fleet of electric vehicles and electric vehicle charging solutions.

Investors are going absolutely crazy — SPI stock started the day with a market capitalization near $20 million. Shares are now almost 720% higher. This should not be surprising, as electric vehicles have been one of the hottest niches in the stock market this summer. We have seen Tesla (NASDQ:TSLA) become the most valuable automaker, and debuts from the likes of Nikola (NASDAQ:NKLA) and Xpeng (NYSE:XPEV) have generated a lot of buzz.

Importantly, there is not a ton of information yet about EdisonFuture. The one thing the company did share is that when necessary, the subsidiary will partner with big manufacturers.

Why Is SPI Stock Surging Wednesday?

There are a few important things for investors to know as SPI Energy drives higher Wednesday. The first is that, undeniably, the market for electric vehicles and charging equipment is huge. According to the company, EV sales came in at 2.1 million in 2019.

Adding on to that, last year saw the charging market expand to include 7.3 million chargers. We have also seen how hot charging companies are, given the interest in a potential IPO from ChargePoint.

Importantly, SPI Energy seems to recognize its place in this red-hot market. There is a seemingly endless list of companies trying to design and develop electric vehicles, and charging solutions are also taking off. In that market, SPI Energy is a brand-new entrant, but it is selling itself as a value play.

Unlike other electric car stocks that carry high valuations and lofty price points, you can get into SPI stock for under $10. As with any small-cap equity there is a fair amount of risk, but you can take some confidence Wednesday in knowing that electric vehicles continue to race ahead.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer for InvestorPlace.com. 

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/spi-stock-news-why-spi-energy-is-surging-700-today/.

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