STOCKS TELEGRAPH

Tag: Clean Energy

  • XPeng Inc. (XPEV) Stock’s Downward Trend Persists as Chinese Regulations and Oversight Continue to Increase

    XPeng Inc. (XPEV) Stock’s Downward Trend Persists as Chinese Regulations and Oversight Continue to Increase

    XPeng Inc. (XPEV) stock prices were down by 5.86% on July 7th, 2021, bringing the price per share down to USD$41.47 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall another 6.27%, bringing it down to USD$38.87.

    EXPV Hong Kong Debut

    July 7th, 2021 saw the company fall flat in its trading debut in Hong Kong, having been the first Chinese EV maker to finish a “homecoming” share sale. The share sale saw the company raise an impressive USD$1.8 billion. The shares opened at USD$21.62 and fluctuated throughout the session before ending the trading day at USD$21.24, the same as their offer price. The company went public in the U.S in August 2021 and its New York-listed shares have nearly tripled from their IPO price.

    Increasing Chinese Oversight

    The company’s Hong Kong debut followed increases in Chinese regulations as the country cracks down on the technology industry, dealing a massive blow to both global investors and local companies hoping to be listed abroad. July 6th, 2021 saw the Chinese State Council vow to further increase oversight of data security and overseas listings.

    Future of EV Space in China

    With the Chinese regulatory probe into Didi Chuxing recently, the electric vehicle manufacturing space is concerned about the future of the gathering and analytics of vehicle operating data, which was expected to be the next big source of companies’ profits. Stricter government oversight has also resulted in the scaring off of global investors. Shares of Chinese EV manufacturers that are listed in the U.S. have rallied since their lows in mid-May 2021, based on promising demand growth. XPEV is the first of a total of three U.S-listed Chinese EV makers to launch a homecoming sale. Nio and Li Auto are planning to follow suit with listings in Hong Kong.

    Promising Developments

    Despite the company not having yet turned a profit, revenue has been increasing. With the company forecasting profitability by late 2023 or early 2024, revenues have reached USD$455 million in the first quarter of 2021. Deliveries for June 2021 were up a staggering 617% as compared to numbers from the same month of the prior year.

    Future Outlook for EXPV

    As the company expands its investor base closer to home, it is keen for its consumers to also be its stockholders. XPEV is poised to ride the wave of increased Chinese regulations, with strategies to come out stronger than ever. Investors are hopeful that the company will not be hit too hard by the increasing oversight and that this will not affect its listings abroad.

  • ReTo Eco-Solutions, Inc. (RETO) Stock Skyrockets Ahead of Announcement of New Hainan Project

    ReTo Eco-Solutions, Inc. (RETO) stock prices were up by a massive 29.24% as of the market opening on June 23rd, 2021, bringing the price per share up to USD$1.51 early on in the trading day.

    Hainan Province Project

    June 23rd, 2021 saw the company announce a new iron tailings project in the Hainan Province. The project has a 3 million ton treatment capacity and is expected to generate almost USD$43.7 million in annual sales once production commences. RETO has been tasked with designing, building, and managing the facility, which will be responsible for the largest volume of iron tailings in Hainan.

    Merit of RETO

    The company was selected for the project based on its patented technology, ability to implement and manage secondary sorting of iron tailings, as well as the selection and use of iron ore. RETO’s expertise in recycling leftover ore and processing it into ecologically friendly building materials also supported the case for it to be granted the project. The project is expected to generate almost USD$20.4 million in gross profit for the company.

    Basis for Project

    RETO uses cutting-edge and reliable technologies for production by implementing various systems such as three-stage crushing, two-stage screening, sand making, and beneficiation. Leftovers from production are use as an aggregate to produce building materials. Iron ore tailings are one such leftover, as one of the most common solid waste in the world. They are a byproduct of the beneficiation process of iron ore concentrate.

    Scope of Project

    Because of China’s rapid economical growth and expansion of its iron and steel industries over recent years, the volume of iron ore tailings has skyrocketed. This leads to a substantial environmental and economic cost arising from massive land occupation and ecological damage, which, in turn, results in safety hazards. Because of the increasingly alarming proliferation of the waste, effective waste management systems and solutions are more needed than ever.

    Benefits of Project

    The project will help diminish the cumulative adverse effects of the existing waste problem. Concurrently, the project will also serve to help recover valuable iron resources for reuse that would otherwise have been lost. Furthermore, the project has the potential to be an excellent platform to showcase the company’s proprietary one-stop comprehensive solid waste utilization.

    Future Outlook for RETO

    Armed with such a lucrative project in the works RETO is poised to continue its trajectory of success. The company is keen to capitalize on the opportunities afforded to it from the project. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • XPeng Inc. (XPEV) Stock Undergoes Minor Volatility Ahead of Approval for Hong Kong Listing

    XPeng Inc. (XPEV) stock prices were down by 8.34% as of the market closing on June 22nd, 2021, bringing the price per share down to USD$39.99 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 4.68%, bringing the price per share up to USD$41.86.

    Honk Kong Listing

    The New York-traded electric vehicle manufacturer, Xpeng, Inc., has been authorized to be listed on the Hong Kong stock exchange. This move could see the company generate as much as USD$2 billion in Honk Kong as early as the current fiscal year. The company’s American depositary receipts were up at a peak of 4.7% during premarket hours on June 23rd, 2021, with the stock having exhibited a 170% increase since its initial listing in August 2020.

    U.S.-China Tensions

    Xpeng’s inclusion in the Honk Kong listing would end a period that marked an absence of the listing of U.S.-listed Chinese firms. The previous such listing was for the travel firm, Trip.com Ltd., in April 2021, which ended up raising almost USD$1.25 billion. Investors hope Xpeng’s listing marks the resumption of the flocking of U.S.-traded Chinese companies to the Asian financial hub since 2018, when regulations were eased to allow the likes of Alibaba and gaming giant NetEase to list.

    Relations Improving

    Stateside-traded Chinese firms are given scaffolding by a listing in Honk Kong, which acts as a hedge against the risk of being delisted from the U.S. exchanges. This allows the companies to broaden their investor base closer to home. Following a bill passed in the U.S., public Chinese companies could find themselves delisted from U.S. stock bourses if they do not allow their audits to be reviewed by American regulators.

    Landmark Listing

    Xpeng’s listing is a dual primary listing, which means it isn’t exempt from some of the Asian hub’s listing rules like it would be if it were a secondary listing. Because the company has only been public in New York since August 2020, it doesn’t meet the requirement of having a two-year listing history for it to merit a secondary listing in Honk Kong. The primary dual listing will be the biggest of its kind in Honk Kong in almost 3 years, when biotech drugmaker BeiGene Ltd. raised USD$903 million.

    Future Outlook for XPEV

    Armed with a massively expanded potential investor-base, XPEV is poised to capitalize on the broadened opportunities afforded to it from its Hong Kong listing. The company is keen to continue its trajectory of success and usher in unprecedented growth with access to more capital. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • What Is Causing CLNE Stock To Rise Premarket?

    Shares of Clean Energy Fuels Corp. (CLNE) climbed to $12.12, an increase of 8.5% in premarket trading hours on Tuesday. As of the close of the last trading session, CLNE stock was trading at $11.17, up 3.43%.

    Prices ranged from $10.92 to $12.569 for CLNE stock. CLNE stock traded 61.39 million shares, more than its daily average of 11.23 million. CLNE stock rose after the unveiling of new visual identity designed to signify the company’s role in a future carbon-neutral world.

    The new visual identity for CLNE:

    Clean Energy provides the cleanest fuel for the transportation market in the United States. Through CLNE, a renewable natural gas (RNG) derived from organic waste decarbonizes transportation. With CLNE, thousands of vehicles can reduce greenhouse gas emissions, including airport shuttles, city buses, waste, and heavy-duty trucks. Across the US and Canada, CLNE operates more than 500 fueling stations.

    Yesterday, Clean Energy presented a new company logo, the cornerstone of an entirely new brand identity that mirrors the company’s commitment to expand its renewable fuel solutions.

    • As more companies seek solutions to climate change, the demand for low- and negative-carbon renewable fuel is rising.
    • CLNE, as the industry leader in RNG, is now at the forefront of helping customers meet their sustainability goals.
    • CLNE’s rebranding plans include investments in the development of RNG from dairies, alongside TotalEnergies and BP.
    • CLNE is on pace to sell RNG at all of its stations by 2025, meeting one of its own sustainability goals.
    • RNG currently makes up 70 percent of the fuel sold at CLNE’s stations.

    CLNE’s strategy:

    Clean Energy (CLNE) has pivoted its operations to focus on developing fuels that can reduce fleets’ carbon footprint by up to 500%. A new CLNE website, featuring updated information about the company’s focus on providing end-to-end solutions to meet the demands of RNG, was launched as part of the rebranding effort.