Electric vehicle companies continue to be some of the hottest stocks on the market right now. With Tesla’s success confirming that there is plenty of demand for electric cars, a number of smaller developers have jumped onto the scene in the hopes of making it big. As it turned out, one small EV maker managed to secure a big partnership with one large U.S. city recently. Arcimoto (NASDAQ: FUV) is up around 70% following news of a municipal pilot agreement with the City of Orlando to try out more eco-friendly vehicles.
From the fire and police departments to parking enforcement, the City of Orlando will test out these new EV’s from Arcimoto in a 90-day pilot program across all of its departments. It’s part of a broader sustainability initiative that the city has been working on, hoping to become one of the most eco-friendly cities in the American southeast.
“We are thrilled to work with Mayor Dyer and the City of Orlando, one of the most forward-looking cities in the country when it comes to increasing sustainability and tackling the climate crisis. We believe Orlando’s use of our practical, ultra-efficient, small-footprint vehicles will serve as a model for other cities across the country that aim to aggressively electrify their fleets,” said Arcimoto Founder and President, Mark Frohnmayer, in a statement Thursday morning.
It’s a pretty big deal for Arcimoto, which has been a relatively small, obscure electric vehicle manufacturer in comparison to giants like Tesla that have hogged much of the limelight over the past few years. Shares of Arcimoto are up around 69% on the news, although the company remains well within the realm of small-cap stocks.
In turn, other electric car makers jumped on this news as well. While these companies technically are competing with one another, this market is so young that any good news is seen as a positive sign for the entire industry.
Ayro (NASDAQ: AYRO), one of the newest EV companies out there, is up around 45% on Thursday. There was no major news from the company to justify this jump, although Ayro has said in the past that it’s trying to push for 3rd party partnerships with universities and municipalities. This positive news from Arcimoto seems to have stoked investor expectations that Ayro might be able to secure a similar agreement in the near future as well.
Other EV stocks that rallied today include Electrameccanica (NASDAQ: SOLO), which is up around 39.5%, and Kandi Technologies (NASDAQ: KNDI), which Is up around 27.1%. Overall, small-cap EV stocks have been some of the most volatile in the market, with the past couple of months seeing especially significant gains.
Arcimoto Company Profile
Arcimoto (NASDAQ: FUV) develops and manufactures ultra-efficient and affordable electric vehicles to help the world shift to a sustainable transportation system. Now available to preorder customers on the West Coast, the Arcimoto FUV is purpose-built for everyday driving, transforming ordinary trips into pure-electric joyrides. Available for preorder, the Deliverator and Rapid Responder provide last-mile delivery and emergency response functionality, respectively, at a fraction of the cost and environmental impact of traditional gas-powered vehicles. Every Arcimoto vehicle is built at the Arcimoto Manufacturing Plant in Eugene, Oregon. For more information, please visit Arcimoto.com. – Warrior Trading News