Hyzon Motors (NASDAQ:HYZN) has proven that it won’t be left behind in the race toward a more sustainable future. The Silicon Valley-based electric vehicle producer has just announced a deal that will help it power the EV revolution. As a result, HYZN stock has pulled a massive U-turn.
Why HYZN Stock Has Taken Off
According to today’s announcement, Hyzon has signed a memorandum of understanding (MoU) with Shanghai Hydrogen HongYun Automotive that it will provide 500 hydrogen fuel cell electric vehicles to the Chinese logistics company.
HYZN stock was quick to react to the news and has shot up 25% on the day as of this writing. This turnaround comes on the heels of a turbulent week which saw HYZN stock decrease by as much as 12.68%. Today’s pre-market saw it rise by 10% and from there it has only continued.
This marks the company’s largest order yet since its public debut on July 19, 2021. This particular buyer is considered one of China’s leading players in the electric vehicle race. If this partnership continues, it will quickly prove valuable for the company and likewise for investors who hold HYZN stock. China has a demonstrated interest in electric vehicles and for American manufactures, the country represents a market with significant potential.
A SPAC on the Move
It is worth noting that Hyzon became public in July 2021 after merging with a SPAC. Less than one month after, the company began shipping its first electric trucks to customers in Europe.
This been a turbulent season for SPACs and HYZN stock hasn’t been immune to this trend. Early August saw it dip considerably. Since then it has climbed gradually, albeit slowly, with few dramatic downturns.
What the company has demonstrated is that it understands the importance of establishing a presence in international markets and has prioritized exactly that. Other Chinese companies will likely take note of Shanghai Hydrogen HongYun Automotive’s deal and may move to make a similar purchase. Logistics is a prominent industry in China, though it may not receive as much media attention as others.
The Road Ahead: How Far Will HYZN Stock Go?
It seems as though the journey for this zero-emissions vehicle producer is just getting started.
Despite a somewhat rocky start, the company is taking steps to quite literally keep operations moving forward.
Unlike fellow EV manufacturer Lucid Motors (NASDAQ:LCID), Hyzon has wasted little time getting its products out into the world and showing everyone what it can do. This may be the reason that HYZN stock has not been forced to deal with the same market turbulence as Lucid, despite not having Lucid’s constant media buzz.
The trucks and other large vehicles that Hyzon produces may not be as sleek and visually appealing as Lucid’s still-developing products, but as of now, they may have more commercial appeal and utility.
Demand for shipping won’t slow down and Hyzon was early to recognize an important market need. As a result, HYZN stock seems poised to continue on the road toward a profitable future.
On the date of publication, Samuel O’Brient 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.