Even though lithium-ion battery manufacturer Microvast Holdings (MVST) is expected to see high demand for its products with the increasing demand for EVs, the stock is currently trading below $10, near its 52-week low. So, can the stock advance on the back of the company’s expanding reach and strategic partnerships? Read on.Microvast Holdings, Inc.’s (MVST) ultra-fast charging battery system provides comprehensive solutions for different applications, from commercial vehicles, to passenger vehicles and energy storage, to consumer electronics. The Stafford, Tex.-based company made its stock market debut on July 26, 2021, merging with a special purpose acquisition company (SPAC) Tuscan Holdings Corp.
Its shares have gained 23.2% in price over the past month to close yesterday’s trading session at $9.39, due mainly to investors’ optimism surrounding vehicle electrification and the increased need for energy storage.
However, the stock has lost 31.5% over the past three months and is currently hovering around its 52-week low of $7.38, which it hit on October 6, 2021. According to a Reuters report, 26 securities class actions were filed against SPAC-related companies from January 2021 through October 29, representing a 420% year-over-year rise from 2020. Furthermore, MVST reported losses in the second quarter. So, the stock’s near-term prospects look bleak.