Is AYRO a Winner in the Electric Vehicle Industry? By StockNews

Is AYRO a Winner in the Electric Vehicle Industry? By StockNews

© Reuters. Is AYRO a Winner in the Electric Vehicle Industry?

Ayro’s (AYRO) diversified product pipeline in the electric vehicle (EV) space drove its stock to triple-digit gains last year. However, EV bubble concerns have led shares of AYRO to decline over the past couple of months. So, will regulatory and industry tailwinds allow AYRO to regain its momentum soon? Read more to find out.Ayro, Inc. (AYRO) is a relatively new player in the electric vehicle (EV) space. The company administered a reverse merger with DropCar, Inc. on May 29 last year, combining shares through a five-for-one reverse stock split and stock dividend offering. Shares of AYRO have gained 175.1% over the past year, and 91.8% over the past six months.

As a B2B company, AYROP’s EVs have been highly demanded from businesses nationwide given the rising need for robust delivery systems. The company plans to produce and deliver 20,000 light-duty trucks and electric delivery vehicles over the next three years in partnership with Karma Automotive’s Innovation and Customization Center. In this regard, AYRO has expanded its Austin manufacturing facility to build approximately 600 vehicles per month.

While the company’s operations look good on paper, AYRO is a relatively unknown name in a highly competitive industry. Many well-known companies, such as Tesla, Inc. (NASDAQ:) and Nikola Corporation (NKLA), have diversified portfolios of electric trucks, with extensive pre-orders. With limited earnings growth potential in a highly crowded industry, AYRO’s stock is relatively overvalued. Because of an ongoing sector rotation by investors away from overvalued stocks, shares of AYRO have declined 7.2% year-to-date, and 19.8% over the past month.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *

Enter text shown below: