The EV technology company and commercial EV maker, Cenntro Electric Group Ltd. (CENN) will be announcing its 2021 financials today, April 25, after the market close. With positive anticipation surging among the investors, the stock has been accumulating gains since the company announced the earnings date on Friday.
Amassing gains of 6.92% on Friday, CENN is currently trending at a price of $1.92 per share in the premarket. At the last check, an active volume of over 1 million shares had the stock add a further 12.94% in the premarket.
CENN’s Upcoming Earnings & Investor Rally
The EV maker will hold its 2021 year-end financial results conference call today at 5:00 p.m. Eastern Time. Prior to the conference call, CENN will issue its earnings release for the year ended on December 31, 2021.
The company had announced the earnings date on April 21, and since then investors have been rallying the stock. It seems investors are looking forward to the earnings with much enthusiasm. While the actual picture will be presented after the earnings release there are still two possible scenarios, both culminating in a possible sell-off. If the earnings proved to be better than expected, CENN will continue on its bullish course to finally fall under corrections. On the other hand, if the company fails to impress investors with its earnings, a sell-off will be initiated anyway.
How has the pivot been so far?
In 2021, the stock market witnessed a strange and unexpected pivot as an apparel retailer acquired an EV maker. Naked Brand Group, which was a swimsuit and intimate apparel retailer, acquired Cenntro Automotive. Being on the verge of delisting, the company raised nice capital through retail investors, and unlike anything that was expected, it utterly changed the course of its business and acquired Cenntro.
So far, the company has made some progress with total production reaching 1,623 commercial EVs for 2021. Among these, 628 ECVs were produced and shipped in December alone. But this still raises questions about its forecast of at least 20,000 ECVs for 2022. However, CENN is making some progress with its expansion plan as it acquired a majority interest in Tropos Motors (Europe) recently. Moreover, the company ended 2021 with $250 million in cash and no debt, which leaves it with good enough capital to continue its expansion operations in Florida and Germany.
Conclusion
Leaving the apparel drama behind, CENN is now focused on scaling its production through the expansion of its business in 2022. While the 2022 production goals seem unrealistic, the upcoming conference call might shed some light on what’s in store.
