What Is Going on With Cenntro Electric (CENN) Stock Today?

  • Cenntro Electric (CENN) announced a new electric delivery van.
  • The China-based company went public last year by merging with the defunct Naked Brands.
  • Investors will want to see production in quantity before buying CENN stock.
CENN stock - What Is Going on With Cenntro Electric (CENN) Stock Today?

Source: Shutterstock

Cenntro Electric (NASDAQ:CENN), a China-based electric vehicle (EV) maker that came public last year by merging into Naked Brands, is expanding its Logistar line of delivery vehicles. The company said it began production a week ago. CENN stock had a brief vogue last year during the heart of the EV stock trend. It has recently been trading near its March low of $1.30 per share. It opened today at $1.31 with a market cap of $342 million and is down 3% so far this morning.

What’s Cenntro?

Led by CEO Peter Wang, Cenntro claims 238 patents, based on a simple iChassis. Its web site indicates a focus on delivery vehicles and airport luggage carriers.

The company came to the U.S. market after the demise of Naked Brands, an Australian seller of intimate apparel that had a brief run as a 2021 meme stock. The merger’s effect was that of a special purpose acquisition company (SPAC), an operating company taking on a defunct shell.

Cenntro’s latest offering is the LogiStar 100. It has a range of just 74 miles but can carry 1,151 pounds inside 73 cubic feet of cargo space. The company also offers the Logistar 260, a similar vehicle. Both have passed tests making them eligible for sale in the European Union. The company’s first moves beyond its home market were to set up manufacturing in Bulgaria. It was recently rumored to be working with French partners.

Traders on StockTwits have expressed skepticism about the company’s ability to produce cars in volume. A few other traders have been boosting the stock on Twitter (NYSE:TWTR). The company had sales of just $6.6 million for the six months ending in July and reported losses of more than $33 million.

What Happens Next for CENN Stock?

The market remains in a “show me” state regarding electric vehicles. Cenntro will need to start producing — and selling — electric trucks in volume before traders jump on board with CENN stock.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

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

On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.


Article printed from InvestorPlace Media, https://investorplace.com/2022/09/what-is-going-on-with-cenntro-electric-cenn-stock-today/.

©2022 InvestorPlace Media, LLC