This week, CBAK Energy Technology Inc (NASDAQ: CBAT) saw its stock price increased by about 260% and it is hovering at more than 160% now. Several industry announcements this week and new government legislation are likely what is driving the price higher.Â
CBAK Energy Technology, Inc. (NASDAQ: CBAT) is known as a leader in the R&D, manufacture, and sales of high power lithium batteries. Its products and solutions are covered in areas like electric vehicles, light electric vehicles, transportation, and energy storage.
The jump in CBAKâ€™s stock price coincided with an announcement where solar company SPI Energy announced it would be launching an electric vehicle subsidiary called EdisonFuture.
CBAK is also building on the momentum that announced last where its wholly-owned subsidiary Dalian CBAK Power Battery CO., LTD. announced it successfully entered into the supplier base of Haier Group and won the bidding for Haier project in the smart home market. CBAK Battery will help Haier build the Intelligent manufacturing information system.
â€śCBAK has many years of experience in Lithium ion battery, and we are exploring the home appliance sector. At the beginning of the design, we have already begun our full contact with our customer. We applied our experience in lithium ion battery from electrical design to structure design and outer look, giving them the best user experience. In the future we are going to conduct more point to point project development, devote ourselves fully into the smart home appliance field, which is a blue sea market,â€ť said CBAK Energy CEO Yunfei Li.
This week, the U.S. House of Representatives passed the Clean Energy and Jobs Innovation Act. The bill highlights a goal for the country to reach net-zero pollution no later than 2050 and make environmental justice a priority, integrate higher amounts of wind and solar energy manufacturing processes, and building up more grant programs for energy efficiency and clean transportation. Legislation like this could benefit companies like CBAK Energy.
Should I Buy CBAK Energy (CBAT)?
In my opinion, there is not enough data to determine whether CBAK will be a strong performer in your portfolio. Personally, I like to see multiple quarters of stable growth before making an investment decision. CBAK will be announced its next quarterly results on Monday and the stock price could wildly swing again after that. Unless you are a seasoned financial investor, I would recommend placing your bets elsewhere for now.
Another reason why I am wary about CBAK is due to its past stock performance. You will notice how volatile it has been since 1995:
Screenshot Credit: Google
Disclosure: I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.