Shares of CarParts.com (NASDAQ:PRTS) were revving today after some electric vehicle pixie dust landed on the stock today.
The online car parts seller said it just launched a marketplace for electric vehicles, hybrids, and plug-in hybrids. As a result, the stock was up 33.4% as of 1:17 p.m. EST.
Investors have been going gaga for anything related to the electric vehicle industry so it's not a surprise to see shares of the e-commerce stock charging higher on the news.
Carparts.com said its product offering for electric vehicles and hybrids now includes more than 700,000 applications for repair, maintenance, and enhancement, and that parts are available for more than 25 popular vehicle makes, including Tesla, Toyota, and Honda.
Chief Merchandising Officer David Morris explained that the transition to EV auto parts isn't as complicated as one might think, saying: "There is a lot of misinformation out there surrounding the perceived differences in parts and repairs for electric cars compared to gas vehicles. But in reality, hybrids and EVs have many of the same fundamental parts that gas-powered cars do -- from brakes, headlights, and mirrors to fenders, control arms, and shocks or struts."
The new marketplace is unlikely to move the needle on the company's performance for now as the vast majority of cars on the road are traditional combustion vehicles, and demand for replacement parts doesn't peak until vehicles are 6 to 15 years old.
Still, launching a shopping hub focused on EVs and hybrids is a smart move as it will give the company an advantage in what the market sees as the future of cars. By doing so, CarParts.com is responding effectively to a clear signal from the market, and that investment along with its e-commerce foundation positions the company well for long-term growth.