Atlis Motor Vehicles (NASDAQ:AMV) is a newcomer in the electric vehicle sector. However, it is taking the stock market by storm after two consecutive days of gains.
As of press time, Atlis was trading 8% down in premarket after two consecutive days of gains. The stock, which made a Nasdaq debut on September 27, closed up 199% on the same day. It rose again by 186% in the premarket on Wednesday. It remains to be seen how Atlis will craft a name in an industry dominated by giants like Tesla.
Atlis operates in the e-mobility ecosystem. The company currently makes EV batteries and the EV work truck. The EV maker’s flagship AMV XT comes at a 500-mile range and has a drive-by-wire system. Atlis says it is the first EV to offer e-mobility solutions for small to medium-duty EV trucks at low prices. The company also draws popularity from diesel-powered trucking enhancements for an EV truck.
How sustainable is Atlas surge?
The post-IPO gains are positive for Atlis. It at least shows investors have a very strong belief in the gap the EV maker fills in the market. However, as of the moment, Atlis is yet to debut a product in the market. Its flagship work truck is still in progress.
Aside from the company-specific factors, Atlis debuts when the EV sector is soiling. Supply issues for key materials weigh on the industry. Recession fears and cost pressures are also weighing on the stock market. Like other stocks, Atlis could be just enjoying the moment as most debuts are usually characterised by high volatility.
Should you buy Atlis
This article finds investing in Atlis a risky affair. It could just be a bull trap as the stock volatility could soon come crumbling. The stock is, however, one to watch over the longer term.
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