AYRO Inc (AYRO) Stock Rockets On EV Factory Expansion

AYRO Stock News

AYRO Inc (NASDAQ: AYRO) is making a run for the top in the market this morning, trading on gains of nearly 50% early on. Strong gains are being seen across the board in the electric vehicle space, following Nio’s report of strong sales in June.

Shortly after that report was released, AYRO issued a press release, saying that it has increased its electric vehicle manufacturing capacity. Here’s what’s going on.

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AYRO Stock Gains On Factory Expansion Announcement

In the press release, AYRO said that it has expanded its light-duty, emission-free electric vehicle manufacturing facility. The expansion brings the manufacturing facility from 10,000 square feet to 24,000 square feet.

This expansion allows fo r new assembly lines and additional engineering and product development facilities as the company works toward better battery technology, power train, supply chains, service, and application service solutions.

As a result of the expansion, the company can now produce up to 600 electric vehicles per month. In a statement, Rod Keller, CEO at AYRO, had the following to offer:

Our previous facility was only capable of producing up to 200 vehicles per month and we knew that we would soon outgrow its capabilities if we met our projected growth targets. The capital infusions we received over the past few months have enabled us to complete the new expansion and accelerate our growth plans. The new manufacturing facility was designed to allow us to handle up to 600 electric vehicles per month, representing a 200% increase in production against a 140% expansion of floor space.

Our position within the electric vehicle market should be strengthened by our manufacturing capacity expansion and our presence in Austin. Tesla is on the verge of finalizing its newest and largest $1 billion “gigafactory” in Austin, while Hyliion, an Austin-based electric-powered heavy-duty truck company is expected to merge with Tortoise Acquisition Corp. later this year.

Austin is fast becoming a powerful force in the electric vehicle industry and we are thrilled to be right in the middle of it with our great product line-up and fleet sales orientation for purpose-built vehicles. Underlying the expected demand for our vehicles – both existing models and newly engineered designs nearing completion – is the coronavirus pandemic which continues to force businesses to rethink campus and urban mobility relative to accelerating on-demand delivery models. Our electric vehicles have the potential to be a part of this changing landscape for how food, goods, equipment, materials and related items are transported.

This News Is Huge

It’s clear that demand for electric vehicles is heading up. As this demand continues to increase, those that build production capacity to meet that demand will likely see an increase in sales, revenue, and the potential for earnings.

When it comes to AYRO, the company is increasing its facility’s square footage by 140% and expecting a production increase of 200%. This shows that the company likely has the ability to scale to improve margins and increase profitability as demand continues to head up.

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