Wejo (NASDAQ:WEJO), which provides cloud and software solutions for electric and autonomous vehicle data, just disclosed a partnership with Ford (NYSE:F). Although F stock didn’t move much on this news, WEJO stock quickly gained 10%.
Founded in 2014, Wejo seeks to revolutionize “the way we live, work and travel by transforming and interpreting historic and real-time vehicle data.” The company focuses on providing historic and real-time data and analytics for connected, electric and autonomous vehicles. Meanwhile, the European market for these vehicles is robust. Having access to vehicle data in that region would certainly benefit Wejo.
Amid this backdrop, it’s huge news that Ford is working with Wejo. According to the press release, Wejo will have access to personalized connected vehicle data from Ford vehicles throughout Europe. Wejo can then offer these data and insights to insurance providers — and this could provide a boost to Wejo’s bottom line.
Could there be other notable collaborations in the works? Wejo founder and CEO Richard Barlow seemed to tease this possibility. “We will continue to work with partners like Ford and other vehicle OEMs to look beyond insurance to identify all the use cases for connected vehicle data,” he said.
What’s Happening With WEJO Stock and F Stock?
It didn’t take long for Wall Street to price its enthusiasm into WEJO stock. The share price jumped 7% in the morning today, and was up 10% by 12:00 p.m. Eastern.
Ford’s shareholders appeared to be less enthused about the partnership with Wejo. Perhaps that’s because Wejo is evidently the main beneficiary of the collaboration, not Ford. Thus, F stock was flat throughout the day, and continued to cling to the $12 level.
Importantly, today’s uptrend in WEJO stock should help to keep it above the crucial $1 price point. This is significant, because the Nasdaq exchange can issue delisting warnings when stocks fall below $1 and stay there for too long.
In light of the Ford tie-in news, both Wejo’s and Ford’s shareholders should continue to monitor for further developments. As the European smart vehicle market grows, so could the opportunities for revenue generation — and for share-price appreciation.
On the date of publication, David Moadel 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.