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Why VivoPower International Stock Is Higher Today

By John Rosevear - Jan 25, 2021 at 1:50PM

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VivoPower stock is jumping on a $250 million distribution deal for the company's EV conversions.

What happened

Shares of VivoPower International (VVPR 1.83%) were trading higher on Monday, after the company announced it has agreed to a deal with a distributor that will offer its electric vehicle conversions in Australia. 

As of 1:30 p.m. EST, VivoPower's shares were up about 22.7% from Friday's closing price.

So what

This will take a bit of explaining.

London-based VivoPower has a 51% stake in a Dutch company called Tembo e-LV, which installs electric drivetrains in Toyota Land Cruiser SUVs and Hilux pickups. Tembo also sells kits to convert vehicles to battery-electric operation.

GB Auto is a privately held Australian company that sells vehicles and equipment to clients in the mining, construction, transportation (think buses), and agricultural sectors. GB Auto has a subsidiary, called GB Electric Vehicles, that sells -- you guessed it -- electric vehicles, specifically to mining companies for underground operation. 

So here's the news: Tembo has signed a definitive agreement with GB Electric Vehicles, under which GB becomes the exclusive Australian distributor of Tembo's trucks and conversion kits. 

A white Tembo work truck parked next to a GB Auto office.

GB Auto will distribute Tembo's Toyota-based electric trucks in Australia. Image source: GB Auto.

Now what

It's a substantial piece of business for VivoPower. The company said in a statement that it expects GB Auto to purchase $250 million worth of vehicles and conversion kits over the four-year term of the deal. 

That, plus the intense investor interest in everything having to do with electric vehicles, is why the stock is up today.

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Stocks Mentioned

VivoPower International PLC Stock Quote
VivoPower International PLC
$1.11 (1.83%) $0.02
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Toyota Motor Corporation
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