Please ensure Javascript is enabled for purposes of website accessibility

Why SolarEdge Technologies Stock Popped 24.8% Last Month

By Travis Hoium – Updated Apr 26, 2019 at 10:39AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This solar company is betting big on electric vehicles.

What happened 

Shares of SolarEdge Technologies (SEDG -3.07%) jumped 24.8% in January, according to data provided by S&P Global Market Intelligence, as solar stocks rose and the company made moves that could broaden its market reach

So what 

SolarEdge announced and completed the acquisition of a 57% stake in S.M.R.E. Spa, an integrated powertrain technology company for electric vehicles. The acquisition cost $85 million and is expected to get the company into component design and manufacturing for electric vehicles. Over time, SolarEdge intends to acquire the rest of the company through open market purchases. 

Check out the latest SolarEdge earnings call transcript.

A vehicle being electrically charged.

Image source: Getty Images.

Management also announced that SolarEdge's EV charging solar inverter can now be controlled using Google Assistant. The hope is to make smart EV charging an integrated feature for homeowners with solar. 

Now what 

SolarEdge clearly isn't satisfied being a component supplier in the solar market, since it's trying to spread its wings into other markets as well. The electric-vehicle market may be a bit of a reach for a company that started in solar, but the charger is the component that ties everything together. If SolarEdge an integrate its chargers with EVs that have S.M.R.E.'s technology, it could create a technology ecosystem that drives long-term growth. There's a long way to go in an effort to build that integration, but SolarEdge's management clearly has big dreams ahead and the market was buying into them in January. 

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SolarEdge Technologies, Inc. Stock Quote
SolarEdge Technologies, Inc.
$250.84 (-3.07%) $-7.96

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.