Small-cap battery company Microvast (NASDAQ:MVST) is well in the green today, seemingly as a consequence of growing interest in renewable energy. Specifically, MVST stock is up 15% for the day as one of the few beneficiaries from rising energy costs.
What’s going on with Microvast today?
Well, Microvast is likely seeing a renewed interest in its batteries as a result of the current geopolitical environment. As Russia’s invasion of Ukraine pushes its 12th day, energy costs are seeing direct consequences. Russia is one of the largest producers of natural gas in the world. As such, the conflict and subsequent sanctions against the country have sparked an oil supply shock. Oil and gas prices continue to reach “near record levels” across the U.S. and the world.
Many have started pursuing alternative energy systems like solar and electric in response. This is likely the reason behind MVST stock’s recent jump. Microvast produces its own lithium-ion batteries from the ground up, even processing its own raw materials. It seems that interest in the Texas-based company stems from its host of battery options, used in everything from electric vehicles (EVs) to energy storage.
What else do you need to know about Microvast today?
MVST Stock Gains on Energy Price Spike
Microvast’s jump today has been a long-time coming for investors. Down from its all-time highs of over $20 in February 2021, MVST stock now trades for around $7.50 per share. However, it seems investors have reason to remain optimistic on the battery company.
Later this month, Microvast is scheduled to present its fourth-quarter and year-end financial results for fiscal 2021, which ended Dec. 30. The company has also already confirmed the accuracy of its previously announced guidance of roughly $150 million in revenue. CEO Yang Wu had some kind words about its performance:
“We are pleased to close out 2021 with a strong revenue performance in the fourth quarter and a promising backlog heading into 2022. I am proud of our team’s accomplishments and ability to grow top line revenue against the backdrop of a challenging year. We look forward to carrying this positive momentum into 2022 as we continue on our electrification journey.”
All told, investors may want to keep an eye on MVST stock moving forward.
On the date of publication, Shrey Dua did not hold (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.
