Sunworks (SUNW) shares soar on SPI Energy (SPI) price boom. The rise is caused premise of SPI Energy getting into electric vehicles.
The first big reason for this speculation dates all the way back to early August. Sunworks announced that it had agreed to a merger with Peck Holdings (PECK), another player in the solar construction space. According to the company press release, the merger would create a coast-to-coast leader in the solar industry and drive cost synergies.
Sunworks (SUNW) Stock Soars on EV Speculation
Yesterday we saw SPI Energy (SPI) make similar moves in the market, after that solar company announced the launch of its electric vehicle subsidiary EdisonFuture. Investors were very excited to get in on a pure-play in the space and ride it up. This morning, many are betting that the pre-market moves in SUNW are the first steps of a similar rally.
Plus, it appears that the August news all ties into this speculation. Why? Many investors believe that the upcoming merger could create an opportunity for Sunworks to make a strategic pivot and lean into electric vehicles. If SPI Energy can do it, why not Sunworks and Peck Holdings? Wall Street is so ready for new opportunities in the electric car world that come with cheaper price tags than Tesla (TSLA).
There is a lot of potential for risk here with Sunworks, especially due to its small size. However, if its merger with Peck Holdings does result in an electric vehicle pivot, keep a close eye on SUNW stock.
Should you buy shares of Sunworks (SUNW)?
Shares of Sunworks (SUNW) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several years. The majority of the metrics point to this investment being highly attractive.