Atlis Motor Vehicles Inc (NASDAQ: AMV) shocked investors mid-day Wednesday, January 11, with shares more than doubling mid-day. The stock popped as the result of non-binding letters of intent (LOI), Memoranda of Understanding (MOI), and purchase orders that suggests demand for the company’s batteries is flying.
Stop wasting your time. Find winning trades in minutes with Trade Ideas!
Details on the News That Sent AMV Shares for the Top
As mentioned above, Atlis Motor Vehicles is flying in the market today. At the time of writing this article, the stock was trading on gains of over 150%. The gains come after the company announced that it reached a key milestone surrounding non-binding letters of intent to purchase batteries.
According to the company, it has received multiple non-binding LOIs, MOUs, and purchase orders. These signs of demand came from several customers in the automotive, heavy equipment, and solar industries. All told, there’s demand for two gigawatt hours of battery capacity from the company.
A Low Float Played a Role
The fact that demand for Atlis Motor Vehicles’ battery packs is up isn’t the only reason the stock experienced such significant gains. A low float played a meaningful role in the rocket-like movement seen on the chart.
At the moment, there are under 9 million shares in the AMV public float. Since the law of supply and demand ultimately dictates stock prices, the limited supply helped AMV shares reach the incredible mid-day highs we’re seeing at the moment.
When the news hit the tape, countless investors decided it was time to dive in. However, with a very limited number of available shares out there, the price rose significantly as more and more volume started to roll in. So far, more than 25 million shares have traded hands today – that’s nearly three times the total number of shares in the stock’s entire public float.
What Is Atlis Motor Vehicles?
Atlis Motor Vehicles is an electric vehicle company. In particular, the company’s star product is the Atlis XT truck. The Atlis XT is an all-electric truck that comes with some significant perks. It can charge in 15 minutes, has a 500-mile range, and has a 35,000-pound towing capacity.
However, the Atlis XT truck isn’t the only thing the company has to offer.
Another core offering of the company is the Atlas XP platform. The platform is essentially the frame and electrical components of a work truck. From there, enterprise customers are able to create their own unique truck designs to meet the specific demands of their industry.
However, the big story from Atlis Motor Vehicles today surrounds the company’s energy solutions. In my humble opinion, this is the are that makes Atlis shine the most. At the moment, if you want to charge an electric vehicle to 100% capacity, you’ll have to wait at least a couple of hours – in some cases, it could take nearly a day.
With Atlis Motor Vehicles’ energy solutions, that’s not the case. The company is currently developing solutions that make it possible to charge electric vehicles in around 15 minutes. Sure, that’s still longer than it takes to fill a vehicle with gas, but it’s miles ahead of anything available today.
No wonder there’s so much demand for the company’s energy solutions.
Should You Dive Into Atlis Motor Vehicles?
This is a difficult question to answer, and one that I simply couldn’t answer for you. However, I can share the pros and cons with you and let you make your own decision. Here are the pros and cons to consider:
AMV Stock Pros
- Atlis Motor Vehicles’ energy solutions could change the way we see electric vehicles. One of the biggest barriers to the EV industry is charging times. If the company is able to get vehicle charging times to 15 minutes or less, the move would represent a significant step forward for the electric vehicle industry.
- There’s obviously significant demand for the company’s energy solutions. This could push the company to profit quickly once it leaves the development stage and moves into the commercialization stage.
- There’s plenty of interest from investors as well. Although the stock isn’t likely to stay at such extreme high levels in the short term, high levels of investor interest could put a floor on the stock.
AMV Cons
- Atlis Motor Vehicles is in the development stages. Sure, the company has solid proof of concept, but it hasn’t yet achieved something it can bring to the mass market. Any company in the development stage is a risky play.
- The company is losing money hand over fist as it continues to develop its product. As such, it will likely be heavily reliant on funds from the market and its supporters for some time ahead. This could result in the dilution of early investor value.
- Purchase orders, non-binding letters of intent, and MOUs are great, but they’re very different from cold-hard cash. There’s no telling what percentage of these will become converted sales once the company is able to fulfill.
The Bottom Line
Stop wasting your time. Find winning trades in minutes with Trade Ideas!
The bottom line here is simple: there are good reasons for the tremendous run for the top AMV stock is taking in the market today. On the other hand, there are significant risks to consider before you get involved.
Sure, Atlis Motor Vehicles may change the shape of the electric vehicles industry with record-setting charging times. Then again, the entire company could go down in bankruptcy before it ever makes its way through development. It’s easy to look at the extremes and become excited or fearful.
Instead, you should take a calculated approach to investing. Consider whether or not you think AMV will achieve its goals and how much of a difference its technology will make in the electric vehicles and clean energy space. Also, consider the risks and what percentage of your portfolio you’re willing to risk on AMV stock.
If you’re left with more questions than answers, there’s no harm in talking with your financial advisor about a potential investment.
Artilce Resources
- https://www.marketwatch.com/story/atlis-motor-vehicles-shares-more-than-double-on-customer-interest-metric-271673462463
- https://finviz.com/quote.ashx?t=AMV
- https://finance.yahoo.com/quote/amv
- https://finance.yahoo.com/news/atlis-motor-vehicles-reaches-2-134000997.html
- https://www.atlismotorvehicles.com/
- https://www.wsj.com/market-data/quotes/AMV/research-ratings