Today, one of the big gainers in the market is Alset EHome International (NASDAQ:AEI). Indeed, investors in AEI stock are currently seeing gains of approximately 28% at the time of writing.
This move comes amid some impressive volatility with this stock this year. After peaking at nearly $30 per share on the previous meme stock rally, shares of AEI stock now trade in the $6 range.
That said, today’s move is impressive. And investors appear to once again be considering this stock as a speculative pick.
Let’s dive into the specific news driving Alset higher today.
AEI Stock on the Move Thanks to Key Partnership
Any company that partners with Tesla (NASDAQ:TSLA) is likely to pop on such an announcement. Such was the case with AEI stock today.
The company announced a strategic agreement with Tesla to supply PV solar panels, Powerwalls and electric vehicle chargers for residential installation. The U.S.-based property developer appears to have struck a chord with investors. As part of the deal, Alset has agreed to target 100 Ehome deliveries in 2021. These brand-new, single-family “Ehomes” will have the aforementioned Tesla-branded products installed upon completion. Currently, the company is targeting new home construction in Texas for this initial delivery target.
Whether this deal benefits Tesla or Alset more remains to be seen. It appears the financial implications of this deal have yet to be released. However, for now, investors appear to be buying AEI stock heavily on the news.
According to Charley MacKenzie, the U.S. CEO of Alset Ehome, “Our plan is to develop over 5,000 intelligently designed Ehomes in the next 3-5 years. We are excited to develop the communities of the future in close collaboration with Tesla. Tesla’s products are not only technologically superior but also aesthetically pleasing. In addition to our rollout in the US, we plan to expand our concept on a global scale.”
Indeed, this news is very exciting for shareholders in both companies. Should this partnership prove fruitful, Alset’s value proposition may indeed get a boost.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.