Today, shares of Greenland Technologies (NASDAQ:GTEC) are up an astonishing 85% amidst a recent boom in electric vehicle (EV) stocks. GTEC stock rallied higher by as much as 80% during the pre-market session before opening lower and then racing back up.
Why Is GTEC Stock Trading Higher?
Greenland Technologies announced that the company would be launching a second electric industrial vehicle line to further increase its product line and sales.
The company stated that the new vehicle, the GEL-1800 electric loader, will be used in industries like construction, mining and agriculture. A 141-kilowatt-hour lithium battery will power the new industrial vehicle, boasting 9 hours of operating time on a single charge. The GEL-1800 will have zero operating emissions and emit 60% less noise when compared to diesel internal combustion vehicles. Additionally, Greenland’s new vehicle will have a quick 2-hour charging time and provide lower maintenance costs than standard diesel loaders.
Raymond Wang, Greenland’s CEO, commented that:
“Our new GEL-1800 arrived the first week of November, marking another major step for us as we successfully launch our second electric industrial vehicle line and work to accelerate the Company’s sales. We are giving customers the compelling financial and operating advantages of electrification in a warehouse or material handling fleet, and our electric industrial vehicles have all the power to get the job done without the pollution generated by traditional internal combustion engines.”
How Do Analysts Feel About Greenland Technologies?
There is currently only one firm with coverage of Greenland Technologies. Analyst Rommel Dionisio of Aegis Capital has a “buy” rating on Greenland with a price target of $14. The price target represents 45% upside from current prices. According to TipRanks, Dionisio has a 52% success rate and an average return of 14.7% over a one-year period.
However, there may be some underlying bias in the price target. Aegis Capital acted as the sole book-runner for a $7 million underwritten public offering of GTEC stock earlier this year.
Greenland Technologies remains a speculative micro-capitalization play in an extremely competitive environment. As a general rule of thumb, investors should be apprehensive when investing in any company with a market capitalization under $1 billion, as it is akin to investing in a startup. However, with high risk comes high reward.
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On the date of publication, Eddie Pan 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.