CBAT Stock Alert: 7 Things to Remember About CBAK Energy as Shares Surge Tuesday

It’s a complicated time for Chinese companies that trade on American exchanges. Last week brought the announcement from the U.S. Securities and Exchange Commission (SEC) that the regulatory agency would be imposing a new policy requiring internationally based companies to disclose their financial information or face being delisted. This sent shockwaves across markets, as Chinese companies ranging from e-commerce to electric vehicle (EV) sectors saw their shares fall. However, energy producer CBAK Energy Technology (NASDAQ:CBAT) has seen its share shoot up today. CBAT stock still trades at a low price point, but its growth today has been impressive.

A magnifying glass zooms in on the website for CBAK Energy Technology (CBAT)
Source: Pavel Kapysh / Shutterstock.com

As of this writing, this lithium battery producer has seen shares rise by more than 20% on the day. For CBAT stock, which ended last week on a low note and continued falling yesterday, this is a welcome change. That said, it is still down by more than 35% for the month. Although there’s no clear reason why the stock has risen as it has today, it has been reported that analysts have given it a consensus hold rating.

What else should investors keep in mind about this penny stock that has experienced unexpected gains today? Let’s find out.

What to Know About CBAT Stock Amid Unexpected Gains

  1. The company describes itself as a “world-leading high-tech power battery company integrating R&D, production and sales of lithium batteries.”
  2. It made headlines in the spring of 2021 when it was announced that CBAT would begin developing a line of batteries for EV giant Tesla (NASDAQ:TSLA) by the end of the year.
  3. CBAT stock has previously risen when positive news regarding the production of lithium batteries begins to circulate. We saw this in January 2021 when Chinese EV producer Nio (NYSE:NIO) announced it would be launching lithium iron phosphate batteries produced at low cost.
  4. A few months ago, InvestorPlace’s Louis Navellier named CBAT to a list of the best penny stocks to buy, regardless of portfolio orientation. As he noted at the time, “You can attribute the decline in CBAT to the Chinese government’s threats regarding U.S.-traded Chinese companies. But the stock is still up more than 205% in the past year.”
  5. Recently, the company announced it was commencing operations of its new lithium battery manufacturing facility, located in the city of Nanjing in China’s Jiangsu province.
  6. A week later, CBAK completed the majority stake acquisition of Zhejiang Hitrans Lithium Battery Technology Co., claiming an equity stake of 81.56%. This company, one of China’s lithium-ion battery material suppliers, was formerly known as Zhejiang Meidu Hitrans Lithium Battery Technology Co.
  7. The last time the price of CBAK stock surged, it was on the same day the company announced it would be reporting its unaudited financial results for the year’s third quarter.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

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.


Article printed from InvestorPlace Media, https://investorplace.com/2021/12/cbat-stock-alert-7-things-to-remember-about-cbak-energy-as-shares-surge-tuesday/.

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