Renewable energy companies have been gaining attraction in the market due to the strong potential they have. Many countries are now relying mainly on renewable energy for their power consumption. Renewable energy sources come in the form of solar, wind, and hydropower.
Against this backdrop, the US stock market witnessed a crazy upward movement in SPI Energy (NASDAQ: SPI) stock on Wednesday. However, the momentum in SPI stock faded down yesterday and shares ended down 6.43%. With SPI stock plummeting more than 20% in the pre-market hours today, it is expected to continue to bleed during the regular trading session.
Before blowing the bubble, SPI stock went wild on Wednesday by ending up 1236%, recording a whopping trading volume of nearly 350 million shares. SPI shares, which reached a day’s low of $0.97 during Tuesday, registered its 52-week high ($46.67) the next day.
The Santa Clara, California-based company’s announcement to launch a unit to design and develop electric vehicles and charging solutions triggered the stock movement on Wednesday. The new unit has been named as EdisonFuture, keeping in mind the peer companies Tesla (NASDAQ: TSLA) and Nikola Corp (NASDAQ: NKLA).
EdisonFuture is based in Silicon Valley and it complements SPI Energy’s current suite of PV solutions, including solar and battery storage technologies. EdisonFuture will focus on the design and development of new EV technologies and plans to partner with major manufacturers.
For the fiscal year ended December 31, 2019, SPI Energy’s loss expanded to $15.1 million from the $12.3 million in 2018. Revenue decreased to $97.9 million in 2019 from $125.6 million in 2018. SPI Energy had a working capital deficit of $113.5 million as of December 31, 2019.
The reason for the upward movement was also partially related to JinkoSolar’s (NYSE: JKS) upbeat quarterly results. Also, Tesla’s battery event added momentum to the SPI’s announcement as investors were keeping an eye on renewable energy stocks. As the traders were ready to take more risks on the penny stocks, SPI stock could have popped up on Wednesday. The performance of SPI Energy will be keenly watched by the market in the future.
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