The U.S. Energy Department is not going to award this grant to the lithium battery company. This could cause problems for the company as it was seeking to build a plant in Tennessee.
As for the reason the grant is being denied, insiders that spoke to Reuters said lawmakers allegedly aren’t happy about the company’s ties to the Chinese Communist Party (CCP). This served as a red flag which seems to have influenced the U.S. Energy Department’s decision to not give it the $200 million grant.
A U.S. Energy Department spokesperson said the following in a statement to Fox News Digital about the grant:
“As responsible stewards of American taxpayer dollars, the Department of Energy maintains a rigorous review process prior to the release of any awarded funds, and it is not uncommon for entities selected to participate in award negotiations under a DOE competitive funding opportunity to not ultimately receive an award. The Department can confirm that it has elected to cancel negotiations and not to award Microvast funds from this competitive funding opportunity.”
MVST Stock Movement Today
Following today’s grant news, shares of MVST stock are falling as investors sell shares. This has some 600,000 shares of the stock changing hands on Tuesday morning. However, that’s still well below its daily average trading volume of about 3.1 million shares.
MVST stock is down 20% as of Tuesday morning.
Investors can find more of the most recent stock market news below!
We’ve got all of the hottest stock market coverage traders need to know about on Tuesday! With that comes all of the latest news concerning Kaspien (NASDAQ:KSPN), Applied UV (NASDAQ:AUVI), and HeartCore Enterprises (NASDAQ:HTCR) stock today. You can read all of that news at the following links!
More Tuesday Stock Market News
- Why Is Kaspien (KSPN) Stock Down 26% Today?
- Why Is Applied UV (AUVI) Stock Up 25% Today?
- Why Is HeartCore Enterprises (HTCR) Stock Up 58% Today?
On the date of publication, William White 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.