The sun is seriously shining on Hong-Kong based SPI Energy (NASDAQ:SPI). Today, shares of the solar company are trending higher thanks to some major news — and one promising longer-term catalyst. So what do you need to know about SPI stock today?
To start, investors should know that SPI stock has been hot since September. Then, the company shared that it was planning to launch EdisonFuture, a subsidiary focused on electric vehicles. Additionally, investors have appreciated its plans to spin off Solar Juice, another of its subsidiaries. The underlying theme is that little-known SPI Energy is making some big moves.
But what has SPI stock trending today? Well, the first part of the story comes from its EdisonFuture business. Today, the company shared that EdisonFuture had delivered its second all-electric shuttle to Santa Clara, California. Why does this news matter?
After SPI Energy announced the launch of its EdisonFuture subsidiary, EdisonFuture in turn acquired Phoenix Motorcars. Phoenix Motorcars has an arrangement with the city of Santa Clara to help it meets its sustainability goals. These two shuttles are part of a plan to swap out wooden trolley cars in favor of electric shuttles. Right now, the ZEUS shuttles come with a 110-mile driving range and a 105-kilowatt hour battery. Additionally, Santa Clara anticipates these will make a big difference, both environmentally and economically. The all-electric shuttles reduce maintenance costs by 75% and reduce fuel costs by 80%.
Clearly, investors like that SPI Energy is ramping up its electric vehicle projects. Additionally, there has been a lot of market interest in municipal fleets. If Santa Clara swaps out more of its wooden trolleys for the ZEUS shuttle, that could be big business for SPI stock.
However, there is one more catalyst at play.
SPI Stock Rides a Presidential Catalyst
Although the news today from SPI Energy is very exciting, it is likely not the only reason SPI stock is riding higher on Tuesday.
Importantly, President Donald Trump signaled that he was allowing his administration to move forward with the presidential transition process. This means that, after weeks of delays, President-elect Joe Biden can begin working toward a January inauguration. Investors are interpreting this as the all-clear signal to dive into Biden-backed equities. On Tuesday, we have seen cannabis names as well as all sorts of renewable energy plays skyrocket. In fact, the Dow Jones Industrial Average reached an all-time high on the news as well.
It makes a lot of sense then that SPI Energy would rocket higher. Investors see the company as a solar and EV play with big potential. Could the Santa Clara deal spawn similar projects? And what could the growing EV business look like under a Biden presidency? We will have to wait and see.
For now, make sure SPI stock remains on your radar.
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.