Romeo Power (NYSE:RMO) is a big mover in the market today, with RMO stock up 20% on electric vehicle battery updates. So what do you need to know now about this battery technology play?
Importantly, investors tend to view battery tech companies as picks-and-shovels plays on the EV market. This includes Romeo, a company in the space that provides a wide range of electrification solutions for commercial vehicles.
Of course, the electrification trend is a secular catalyst many investors are watching closely. Competition is also picking up, making the outlook for various early stage companies hard to digest.
That said, there’s some company-specific news taking Romeo Power higher today. Let’s dive into what investors are watching with this company.
What’s Powering RMO Stock Higher Today?
Earlier today, Romeo Power announced the company has begun shipping its first production pedigree packs to a key customer. This customer operates in the fully electric heavy-duty commercial vehicle market.
The first sales of any product are a big deal. In this regard, investors have a lot to cheer. For Romeo, this successful production launch of its 80-kilowatt-hour (kWh) packs paves the way for a potential commercialization schedule that could proceed faster than expected.
Susan Brennan, Romeo’s CEO, commented, “Romeo has just achieved a major milestone, not only for ourselves, but for zero-emissions commercial transportation as a whole. Our energy-dense batteries now power fully electric heavy-duty vehicles that are expected to travel up to 350 miles on a single charge.”
Indeed, getting more battery packs to more customers is a good thing. This news sets the stage for what could be some impressive growth. No wonder investors are sending RMO stock higher today.
On the date of publication, Chris MacDonald 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.