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Why Microvast Was Soaring Today

By Rich Duprey – Aug 9, 2021 at 12:26PM

Key Points

  • The r/WallStreetBets subreddit crowd continues to hold a lot of sway.
  • Bullish posts can send shares soaring.
  • The battery maker does have some high-profile partnerships that could boost its business.

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The EV battery is just the latest in a long line of meme stocks.

What happened

Shares of Microvast (MVST 1.06%) were running 10% higher heading into noontime trading Monday as the maker of electric vehicle batteries continues to be the subject of bullish posts on the r/WallStreetBets subreddit.

So what

Microvast stock lit up last week after President Biden's Rose Garden speech saying he wanted half of all cars sold in the U.S. in 2030 to be electric. That was followed by more upbeat internet chatroom chatter, which pushed the stock 28% higher over the past week.

A WSB post on Reddit Friday touted Microvast's "solid partnerships" and "competitive advantage" over its peers. That got traders picking up its shares, causing the stock to rise.

Microvast factory

Image source: Microvast.

Now what

Microvast primarily makes lithium-ion batteries for commercial and specialty vehicles. Earlier this year it announced a joint development project with truck maker Oshkosh on future battery and technology development. Last month it said high-tech vehicle OEM eVersum was partnering with it to develop battery solutions for electric shuttles. 

Microvast went public through a merger with special purpose acquisition company (SPAC) Tuscan Holdings and began trading on the NASDAQ exchange two weeks ago, ending its first day down almost 13% to $8.74 per share. The stock is up 46% since then, but as a newly minted meme stock, this EV battery maker is likely to be exceptionally volatile.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Microvast Holdings, Inc. Stock Quote
Microvast Holdings, Inc.
MVST
$1.91 (1.06%) $0.02
Oshkosh Corporation Stock Quote
Oshkosh Corporation
OSK
$86.74 (-1.70%) $-1.50

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

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