China Evergrande Group (OTCMKTS:EGRNF) is seeing its stock soar higher on Monday following positive news for its electric vehicle (EV) company Evergrande Auto.
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.