What happened
Shares of tiny, relatively unknown Australian electrical equipment stock Tritium DCFC Limited (DCFC) lit up the Nasdaq on Tuesday morning, soaring 37% as of 11:55 a.m. ET.
This may have come as a surprise to investors who've never heard of the stock before. But it's not really surprising given the announcement that Tritium just made.
Image source: Getty Images.
So what
This morning, Tritium announced that it is opening a new manufacturing facility in Lebanon, Tennessee, at which it plans to manufacture DC fast-charging equipment for refueling electric vehicles.
This is no tiny operation, either. Tritium says it will set up six separate production lines at its new facility and employ more than 500 workers over the next five years -- and the new factory will produce anywhere from 10,000 to 30,000 fast charger units annually. Tritium cited passage of President Biden's Infrastructure Investment and Jobs Act, which included $7.5 billion in funding for the creation of a network of 500,000 chargers across the United States, as incentivizing it to make the investment in local manufacturing of car chargers.
Now what
What's more, it appears that Tritium isn't just hoping that it might get a piece of this $7.5 billion pie. In making its announcement, it stated outright that Tritium is "thrilled to work with the U.S. Federal government and the State of Tennessee on this initiative."
I don't know about you, but to me that statement seems to imply that Tritium has already secured funds from the announced subsidies. And if that's the case, then combined with the factory opening, it's easily understandable why investors are so excited about Tritium stock today.
