Why is Phoenix Motor (PEV) Stock Rising in Friday Premarket?
The actions of Phoenix Motor Inc. (NASDAQ:PEV) are trading higher pre-market this Friday after the company reported a substantial increase in first quarter results.
Net income rose to $9.4 million from $1.8 million in the prior-year quarter. Gross profits were $2.5 million versus $0.2 million in the prior-year quarter. Earnings per share increased to $0.44 from a loss of $0.13 in the same period last year.
Denton Peng, CEO of Phoenix Motor, said: “Our substantial increase in net income was driven by a significant gain in bargain acquisition through the recent acquisition of Proterra’s transit business, which was acquired below its fair market value”.
Total assets increased to $78.7 million from $11.6 million as of December 31, 2023.
In April, Phoenix Motor unveiled plans to create a artificial intelligence (AI) development center in Silicon Valley, California.
Earlier this year, the company signed an integration agreement with InductEV to develop the software, hardware, and cooling and electrical systems integration of InductEV’s wireless charging pads with its zero-emission drive systems.
“Together with strategic initiatives, including new product launches and key partnerships, we expect to support accelerated momentum across all of our business segments, which will position us well for long-term growth in the rapidly evolving electric vehicle sector.” Peng added.
Phoenix Motor share price
PEV shares are up 128.3% to $0.7933 before the market opening bell.
You can also read: 5 stocks in focus this Friday: APOG, SND, LFCR, MMLP and UAVS
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