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Key points
- Tritium is an Australian-born manufacturer of DC fast chargers for electric vehicles
- It listed on the US Nasdaq exchange just a fortnight ago
- Let's check out what happened with Tritium shares last night…
It's been a pretty fantastic day for the Tritium DCFC Limited (NASDAQ: DCFC) share price. Shares of this manufacturer of direct current fast chargers for electric vehicles shot up 7.1% on the US markets last night (our time) to close at US$7.84 a share. That's more than 10% above the lows this company reached last Friday.
The Brisbane-based Tritium only launched on the Nasdaq just over a fortnight ago on 14 January. As my Fool colleague Brooke covered last week, Tritium was able to merge with a special purpose acquisition corporation (SPAC) called Decarbonization Plus Acquisition Corporation in listing on the share market. In doing so, it forwent the traditional initial public offering (IPO) process that we're all familiar with.
However, Tritium shares remain down around 15% from where they were trading at on their first day of Nasdaq life on 14 January.
So why did this company rocket more than 7% last night?
Why did Tritium shares rally 7% last night?
Well, it's not entirely clear. The company did put out a press statement last Friday which could have had an impact. Tritium announced that it had entered into an agreement with the Saudi company Electromin. Electromin is reportedly a "leading provider of e-mobility solutions across the Middle East and Africa". The agreement will see Electromin purchase 200 DC fast chargers from Tritium.
But the market's latest moves could also have contributed to Tritium's stellar night last night. Overnight, the US markets enjoyed a convincing rally. The NASDAQ-100 (INDEXNASDAQ: NDX) was up a very pleasing 3.3%. Some major tech shares did even better. For example, electric vehicle and battery manufacturer Tesla Inc (NASDAQ: TSLA) saw its stock price surge by more than 10%.
It's possible that Tritium shares just got caught up in this rush back into the tech space that we've seen investors shun in recent weeks.
Whatever the reasons for last night's rally in Tritium DCFC shares, it would certainly be a welcome development for investors.
At Tritium's last share price, this company had a market capitalisation of US$1.06 billion.
