Jiuzi (NASDAQ:JZXN) stock is charging higher on Wednesday after the electric vehicle (EV) company announced plans for a battery swap network.
Jiuzi signed a Letter of Intent with China Petrol Technology (Shenzhen) Limited (CPT ) for the creation of a battery swap network in China. This will have the two companies will be working together to create this network.
According to the press release, Jiuzi and CPT will jointly invest 500 million yuan into the project over a three-year period. 200 million yuan of that will be in the first phase of the project during its first two years.
The plan will have Jiuzi converting 300 to 500 CPT gas stations to battery swap stations. This will start with select CPT locations testing out the battery swapping service during a trial before full conversions take place.
Shuibo Zhang, CEO, director and chairman of Jiuzi, said the following about the news sending JZXN stock higher today.
“A battery swap station with 25 batteries can generate over RMB 5 million revenue per year with only half of its utilization capacity. Deducting electricity, depreciation and labor costs, we estimate an annual profit of RMB 1.5-2 million per station, which will significantly boost to our future operating and financial performance.”
JZXN stock is experiencing heavy trading today following news of the battery swap network. As a result, some 23 million shares of the stock have changed hands as of Wednesday morning. For comparison, the company’s daily average trading volume is about 2.5 million shares.
JZXN stock was up 11.8% as of Wednesday morning but is down 71.8% since the start of the year.
There’s more stock market news for investors to check out besides what’s happening with Jiuzi.
InvestorPlace offers daily stock market coverage and today is no different. Some of the top stories worth checking out include Oatly (NASDAQ:OTLY) falling on a short report, Reddit stocks on the move today, as well as Velodyne Lidar (NASDAQ:VLDR) surging higher. You can get up to speed on this news at the following links!
More Wednesday Stock Market News
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- Reddit Stocks: What Investors Are Saying About MINM, DTSS and NOK Today
- VLDR Stock: The Big Nvidia News That Has Velodyne Lidar Shares Surging Today
On the date of publication, William White 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.
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