Electric vehicle (EV) producer Cenntro Electric’s (NASDAQ:CENN) shares have spent the year trending downward, but they may end 2022 on a positive note. CENN stock is rising today after the company announced it has begun shipping vehicles to Europe.
The vehicles being distributed are the Logistar 260 multi-purpose, all-electric commercial vehicle and the Logistar 100 light commercial van. News of this milestone has sent CENN stock skyrocketing as Cenntro pulls ahead of fellow small-cap EV producer Mullen Automotive (NASDAQ:MULN). Both are penny stocks, but as of now, Cenntro is on the fast track to passing the $1-per-share mark.
Does this news mean that Cenntro will keep advancing into 2023? Let’s take a look at the company and its recent developments.
What’s Happening With CENN Stock
As noted, CENN stock is still in the throes of a highly disappointing year. It has lost more than 90% of its value throughout 2022, leading Wall Street to cast it aside. But today’s news has been the catalyst both Cenntro and its investors have been waiting for. As of this writing, it is up more than 46% for the day and shows no signs of slowing down. After sliding yesterday, this news has pushed it into the green for the week by almost 9%.
It is especially important to note Cenntro’s delivery update didn’t just arrive promptly; it was ahead of schedule. The initial forecast had been its vehicles wouldn’t be delivered until the first quarter of 2023. With more than a week before that quarter begins, Cenntro has shown it can do more than just deliver on promises. As CEO Peter Wang states:
“We remain confident that Cenntro is well positioned to meet the growing demands for commercial EVs with vehicles that combine innovation and function without sacrificing performance, creating sustainable value for our customers and shareholders alike.”
This news comes just a day after Mullen missed a key delivery date of its own. The Cenntro rival had initially planned to start delivering Mullen I-GO EVs to the U.K. and Ireland by Dec. 20. When it failed to deliver on this promise, MULN stock fell by 18% and it hasn’t stopped since.
The fact Cenntro has successfully met its own delivery deadline will give it an important edge over Mullen in the coming year. In October 2022, InvestorPlace writer Bret Kenwell noted while both MULN and CENN stocks remained highly speculative, Cenntro’s European expansion plans could easily prove a boon. After today’s news, it is clear this hypothesis is holding up well.
The Road Ahead
For months, experts have speculated rising competition is one of Cenntro’s biggest problems. It’s true the industry niche in which it operates is becoming crowded. But exceeding delivery expectations and expanding into international markets will help the company gain the market share it needs to keep growing. Also worth noting is that some of its competition comes from unstable companies like Mullen and Arrival (NASDAQ:ARVL), which have given investors more cause for concern than optimism.
As Kenwell said, CENN stock remains a speculative play for bold investors. But if it continues on its current track, it could easily prove to be an underdog winner in the next phase of the EV race.
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On the date of publication, Samuel O’Brient 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.