Following a massive initial public offering (IPO) by Rivian (NASDAQ:RIVN) and plenty of positive news coming out of other electric vehicle (EV) companies, investors can’t seem to stay away from EV stocks lately. Today, shares of SPI Energy (NASDAQ:SPI) are benefitting from this boom, trading higher by 17%. At the time of writing, trading volume is a whopping 10 times greater than the average daily trading volume of SPI stock.
However, there’s more to this story than just general excitement in the EV space. So why are investors suddenly interested in this micro-cap company with a market capitalization of only $171 million?
Let’s take a closer look at some company-specific catalysts boosting SPI stock today.
The 2 Catalysts Sending SPI Stock Soaring
Investors in SPI stock are particularly interested in EdisonFuture, which is a wholly-owned subsidiary of SPI Energy. EdisonFuture has plans to unveil its EF1-T e-pickup truck during tomorrow’s much-anticipated Los Angeles Auto Show. Additionally, interested customers will be able to place reservations for vehicles during the show. Xiaofeng Peng, chairman and CEO of SPI Energy, was particularly excited about potential prospects the show could bring:
“With industry influencers, car enthusiasts, and consumer buyers in attendance, the LA Auto Show provides a tremendous platform to bring awareness to the next-generation technology powering our EF1-T e-pickup truck.”
The EF1-T e-pickup truck is EdisonFuture’s first product in the electric pickup truck and last-mile delivery-vehicle sector. On top of being entirely electric, the EF1-T will also utilize solar power, which will allow the truck to continuously charge while under the sun. The standard model of the EF1-T will boast power of 350 kilowatts and 470 horsepower.
Supporting data shows the addressable market for trucks is in high demand. Approximately 2.9 million pickup trucks were sold in the U.S. during 2020, representing 20% of the entire American vehicle market. Nearly 40% of consumers in the market for a pickup truck want to buy an electric pickup, according to Cox Automotive. Additionally, in 2020, the global last-mile delivery market reached a value of $18.7 billion. In 2027, this figure is expected to balloon to $62.7 billion.
Furthermore, SPI Energy also announced today that it would be issuing $4.21 million of convertible promissory notes to Streeterville Capital, a limited-liability company (LLC) based in Utah. Promissory notes can enable a company or individual to become a lender. These notes carry a 10% interest rate per annum and have a maturity date of Nov. 11, 2022. The entirety of the notes issued can be converted into ordinary shares of SPI stock at a price of $20 per share. That conversion price represents an upside of 180% compared to current prices.
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.
