China Evergrande Group (OTCMKTS:EGRNF) is seeing its stock soar higher on Monday following positive news for its electric vehicle (EV) company Evergrande Auto.
Source: Nick Starichenko/InvestorPlace.com
Here’s what potential investors taking an interest in Evergrande Auto need to know about the company.
- Starting off, Evergrande Auto is a division of China Evergrande Group formed to cash in on the growing EV market.
- A recent announcement includes a $3.35 billion investment in the company by a group of investors.
- That saw it selling a total of 952.38 million shares to six investors.
- This nabbed those investors a 9.75% stake in the company and also sent its value skyrocketing.
- Evergrande Auto saw its market capitalization jump from $17 billion to $51 billion following this investment.
- That not only has it beating out other automotive companies but also surpassing the market cap of its real estate parent company.
- While Evergrande Auto doesn’t have much to offer in the way of EV products at the moment, that’s about to change.
- The company has shown off six different vehicles under a brand called Hengchi.
- Its hopes are to have these EVs enter production this year.
- Evergrande Auto has spent $4.6 billion in hopes of becoming a leader in the EV market.
- That includes building factories and hiring experts over the last few years.
- With the increase in interest in the EV company, investors are boosting shares of EGRNF stock up with heavy trading.
- As of this writing, more than 508,000 shares have traded hands.
- For some perspective, the company’s daily average trading volume is only about 3,000 shares.
EGRNF stock was up 414.3% as of noon Monday.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
