Polar Power (NASDAQ:POLA) stock is soaring almost 80% in early trading after the company announced that it had started taking advance orders for its new electric vehicle (EV) chargers. According to POLA, these EV chargers are mobile and can be used to supply electricity to EVs whose batteries have lost all of their power, leaving their drivers and passengers stranded.
I believe that POLA could potentially become one of the next big EV stocks.
More About Polar Power’s EV Batteries
The full name of Polar Power’s batteries is “Combined Charging System Electric Vehicle Chargers.” They can be utilized to provide emergency roadside service for EVs whose batteries have been depleted before they can be recharged at conventional, immobile chargers. Polar’s chargers will provide a small amount of electricity to stranded EVs, enabling the vehicles to reach the nearest conventional charger.
Polar Power expects the chargers, which utilize “the universal CCS standard,” to be rolled out by the end of March 2024. The CCS standard is being backed by the federal government, which is planning to spend $7.5 billion to subsidize the launch of many new EV chargers in the country.
Background on Polar Power
According to POLA, it has provided fast EV chargers to automakers since 2011. Auto manufacturers have used Polar’s mobile chargers while “field testing” their EVs. according to Polar. POLA added that its mobile chargers are meaningfully smaller, lighter, and cheaper than those of its competitors.
The Future of POLA Stock
Polar’s long history of supplying mobile EV chargers to automakers to some extent validates its technology and manufacturing process. Further, its ability to make smaller, lighter and cheaper mobile chargers than those of its competitors gives it important competitive advantages.
And in light of the rapid proliferation of EVs in the U.S., many insurance companies, firms that provide towing services, and companies that own EVs could look to buy Polar’s mobile chargers over the longer term. Depending on the chargers’ price, some consumers could be interested in buying them as well.
Given POLA stock’s current, very low market capitalization of just $22.73 million, I think that the shares can climb much further over the longer term and become one of the next big EV stocks.
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On the date of publication, Larry Ramer 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.
