Electric vehicle (EV) stocks are rallying today, and it looks like Pioneer Power Solutions (NASDAQ:PPSI) decided to join the party. Pioneer Power Solutions operates as a designer and manufacturer of electrical equipment, most notably EV charging stations. Today, shares of PPSI stock are trading higher by more than 16% after the company received a $12 million order for its E-Bloc product.
As a result of this deal, the company’s sales in its transmission and distribution (T&D) solutions business are expected to double next year. A $12 million order may not seem like a lot, but the sum represents roughly 17% of the company’s current $71 million market capitalization. CEO Nathan Mazurek added that:
“This order marks a significant milestone in Pioneer’s history and reinforces our optimism for additional opportunities that we believe will drive rapid revenue growth for the next several years. The entire Pioneer team is to be congratulated on their efforts in designing, manufacturing and bringing our E-Bloc solution to successful commercialization in such a short time.”
So, what else is there to know about the order lifting shares of PPSI stock higher today? Let’s dive right in.
What to Know About the $12 Million Order Boosting PPSI Stock
- Pioneer Power stated that a mass merchandiser made the order. However, it did not disclose the company. The $12 million order is for 62 E-Blocs. Additionally, it is part of a program where the buyer expects to eventually equip about 500 of its stores with the E-Bloc product. This means that the undisclosed mass merchandiser could possibly purchase more E-Bloc chargers in the future.
- The E-Bloc charger “improves power installation by providing the flexibility to combine a wide variety of distributed energy resources in a compact, integrated package.” Furthermore, the charger is simple to install and is available for both low- and medium-voltage applications.
- In many cases, the E-Bloc bypasses the need to coordinate with local utilities companies when installing the charger. This saves time in the installation process and reduces costs as well.
- CEO Mazurek believes that the demand and addressable market for EV chargers will only grow. Indeed, commercial and industrial properties will increasingly seek to improve their electric infrastructure.
- Last month, PPSI stock ranked No. 1 on Fintel’s Short Squeeze Screener.
- Recently, the company released three new products: the E-Boost G.O.A.T (generator on a truck), the E-Boost Mobile and the E-Boost Pod.
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.