Tantech Holdings Ltd (NASDAQ:TANH)
Tantech Holdings Ltd (NASDAQ:TANH) shares jumped 6.88% after its subsidiary, Suzhou E Motors Buses Co. Ltd, confirmed the signing of a $20 million contract for its electric vans and buses. The contract is for the delivery of 450 all-electric vans and buses.
The massive contract validates the company’s electric car technology at a time when China is emerging as the world largest market for electric cars. Investors appear to be taking note of Tantech Holdings Ltd (NASDAQ:TANH) prospects as it continues to establish its position in the fast-growing electric car market.
China EV Market Opportunity
Tantech Holdings Ltd (NASDAQ:TANH) should continue to rise given its big bet on China electric car industry that is set to grow to 40 million cars a year by mid-2020 up from 28 million as of last year. The $20 million purchase order comes a few months after China’s Ministry of Industry and Information Technology approved the sale of Tantech Holding electric van (ZQK6810EV6) and electric bus (ZQK6810EV8).
The van is specifically designed for airport and tourist operations. The bus, on the other hand, is designed for the urban public transportation industry, coming with a 46 passenger capacity and a driving range of 250km per charge.
“This new sales contract, along with the recent MIIT approval of two of our EV models, laid a solid foundation for us to gain market share in the fast-growing Chinese EV segment,” said CEO Zhengyu Wang.
China presents Tantech Holdings a unique opportunity given the size of country’s auto industry as well as the government crackdown on environmental emission. In a bid to take advantage of the growing demand electric cars, Tantech Holdings Ltd (NASDAQ:TANH) has accelerated its research and development efforts as it looks to stay competitive in the promising EV market.
The Chinese government is currently pushing for environmentally friendly solutions as it seeks to phase out the sale of fossil fuel cars.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.