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Nothing like some EV battery news to recharge trading week! With that in mind, DPW Holdings (NYSEMKT: DPW) has just made a big announcement. The company plans to roll out its EV charging stations in fast food chains in the United States. Unsurprisingly, DPW shares soar sharply as a result. What do investors need to know now?
Initially, DPW Holdings is a California-based private equity firm that focuses on what are known as disruptive technologies. The Coolisys business focuses on power electronics. Fortunately for DPW stock, it means that Coolisys is making strides in the world of electric vehicles and charging of electric vehicles.
This is exactly where the big announcement comes in. Early Monday, DPW Holdings announced that Coolisys’ business had set up a new program. Through this endeavor, the company will install its AceCool charging stations in regional and national fast food chains.
Essentially, DPW Holdings will use the capital available to fund the launch of the program. From there, DPW and Coolisys hope franchisees and operators will install AceCool chargers on their properties. The parties involved would share the costs of advertising and network use and thus also share in the resulting income.
What are the next steps? Well, DPW Holdings hopes to soon announce its first partner, a national franchisee who is 1. 000 locations managed. From there, the company could announce further partners in the first quarter of 2021. This program will also initially focus on California, Nevada and Canada.
No wonder investors are offering DPW shares. In essence, DPW Holdings had previously skyrocketed the announcement of its electric vehicle charging plans. Now it looks like these plans are coming to light.
How should investors see the news if DPW shares rise on Monday morning? First of all, the failure potential is important. Even DPW Holdings itself has recognized that there is no guarantee that this new program will be successful. That said, you should approach this lofty name with caution and keep checking for updates to the program.
However, some things are currently working for the company as well. First, the demand for electric vehicles continues to rise. It is estimated that by 2025 10% of all global car sales will be electric. This estimate increases to 58% by 2040. Against this background, there is a great incentive for companies to prepare for increased national acceptance. Charging stations are a necessary part of this increased acceptance. Taken together, DPW Holdings and DPW shares could get a nice boost if they help make electric vehicles more convenient for consumers.
There is still one specific catalyst involved. It turns out the fast food partnership program could be very helpful for DPW Holdings. Why? One thing to keep in mind is that Blink Charging (NASDAQ: BLNK), a much more established provider in this space, has a similar business model. Importantly, it has partnered with McDonalds locations (NYSE: MCD) with convenience first. Could this pay off for DPW shares?
Keep an eye on it here. Stocks are up more than 30% since Monday.
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At the time of this writing, Sarah Smith held positions (neither directly nor indirectly) in the securities discussed in this article.
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DPW Holdings, NYSEAMERICAN: DPW, Warehouse, Electric Vehicle, Battery Charger
World News – USA – DPW Holdings News: Why EV Charging DPW Shares Are Up
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