Today, investors in Romeo Power (NYSE:RMO) and RMO stock have seen an incredible 60% bump as the company made a massive announcement. Romeo announced a battery supply deal with Paccar (NASDAQ:PCAR), though Paccar stock was little-moved by the announcement.
There continues to be a ton of interest in everything related to the EV sector. Accordingly, this deal is likely to result in increased investor interest in both companies moving forward. Today, shares of both companies are in the limelight, though RMO stock traded at significantly higher volumes throughout the day.
Fellow InvestorPlace contributor William White did a great job of covering the deal from the Romeo perspective. However, I’m going to look at this deal for investors interested in Paccar stock.
So, let’s get to it.
6 Things to Know About Paccar Stock
- Paccar is a global manufacturer of light, medium and heavy-duty trucks. The company’s brands include Kenworth, Peterbilt and DAF.
- Its focus is on manufacturing diesel engines and it sells a variety of related products and services in addition to its core manufacturing business. That said, the company has shifted into battery electric vehicles (BEV) as well.
- This 5-year deal will provide Paccar with battery packs and battery management software provided by Romeo. The company intends to use Romeo’s batteries in its Peterbilt 579 and 520 BEV models.
- Additionally, Paccar has announced it has become a minority shareholder in Romeo as part of the deal. Thus, investors in PCAR stock will have exposure to RMO moving forward.
- Thus, today’s downward move in PCAR stock is a bit surprising. At the time of writing, PCAR is down 1.3% on the strategic partnership news.
- On a year-to-date basis, PCAR stock is up approximately 10%. However, Paccar is still trading around 10% below its 52-week highs set earlier this year.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.