It feels like everyone and his uncle is diving head-first into electric car stocks. Yet, let’s not ignore the growth potential of a very specific niche, which is electrified utility trucks. A premier competitor in this space is Ayro (NASDAQ:AYRO), and traders have started to buy and sell AYRO stock in large volumes lately.
When I say that Ayro’s niche is specific, I’m not trying to say it’s a bad thing. If you can envision an expanding market for battery-electric trucks geared towards short-range deliveries, then AYRO stock is right up your alley.
Besides, it’s probably a good thing that Ayro isn’t attempting to go head-to-head with mega-automaker Tesla (NASDAQ:TSLA). Perhaps Ayro can circumvent the redoubtable competition by carving out a market of its own.
On the other hand, some skeptics might suggest that AYRO stock has gone too far, too fast and was overdue for a retracement. There’s merit to that argument, I believe.
With AYRO stock, the idea is to time your entry point correctly. This requires you to gauge market sentiment while also checking the company’s fundamentals. If everything lines up, that’s when it’s time to press the “buy” button.
A Closer Look at AYRO Stock
When we glance at the history of AYRO stock, we can see a series of periodic price spikes. These happened in December of last year, as well as in May and July of this year.
Those price surges were small hills compared to the huge mountain that we witnessed in AYRO stock in November. The bulls charged ahead full-speed recently, bringing the AYRO share price to a 52-week high of $10.60.
That’s pretty impressive for a stock that was trading at $1.80 at one point this year. Yet, evidently AYRO stock wasn’t destined to stay above $10 this time. Thus, the share price pulled back to just over $7.
Sure, that’s not great news for folks who chased after AYRO stock at its peak. However, it’s an opportunity for anyone waiting on the sidelines to get in at a more favorable price point. Still, you’ll only want to do this if you’ve explored the basics of the company, which we’ll do now.
Specific, Yet Diversified
One thing that I really like about Ayro is that the company’s addressable market isn’t limited to one of two types of clients. Indeed, Ayro’s purpose-built electric vehicles are designed to meet the needs of a diversified groups of businesses.
Pretty much any company that would like to curtail its carbon dioxide emissions and reduce its noise signatures by up to 75% might be interested in purchasing a fleet of Ayro’s vehicles.
Ayro’s vehicles are already in use on school/college grounds as well as at corporate campuses, hotels and resorts. They’re also ideal for government-owned properties and for food and beverage retailers offering last-mile delivery.
Helping Businesses Reduce Emissions
Referring to educational-institution use in particular, Ayro CEO Rod Keller reported, “There are 1800 universities with 10,000+ students and an average of 400 vehicles on campus that need to curb CO2 emissions.”
That’s encouraging for prospective AYRO shareholders as we’re living in a time when reducing one’s carbon footprint is a major priority. This prioritization is likely to persist under a green-energy-friendly Biden administration.
As InvestorPlace contributor Larry Ramer duly noted, Ayro reported third-quarter sales of nearly $400,000. That’s pretty impressive for an up-and-coming company in a sub-niche that’s really in its infancy.
Plus, it’s heartening to see Ayro expanding its clientele in directions that we might not have expected. For instance, Club Car, a golf-cart manufacturer owned by Ingersoll Rand (NYSE:IR), ordered nine electric vehicles from Ayro.
The Bottom Line
Only time will tell how big the market will be for purpose-built electric vehicles.
By owning AYRO shares now, however, at least you’ll have an early stake in this burgeoning industry. Plus, by getting in after a pullback, you can time your entry point properly for maximum gains.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.