VLTA - Why Volta Stock Rocketed Higher Today
Shares of electric vehicle charging station company Volta (NYSE: VLTA) rallied on Wednesday, trading up 6.3% as of 3:15 p.m. ET. While several prominent tech stocks bounced back somewhat from Tuesday's bloodbath, which was driven by an August inflation report that came in hotter than expected, Volta has actually exceeded the price where it closed Monday. That bigger-than-expected move likely was driven both by some positive commentary from President Joe Biden and news from a leading automaker at the Detroit Auto Show.
On the day of the Detroit Auto Show, Ford Motor Company (NYSE: F) announced it was asking nearly 3,000 dealers to invest in upgrades -- primarily, charging stations -- in order to qualify as one of its electric vehicle certified dealers. The more those dealers decide to invest in going all-in on EVs, the more Ford will reward them with higher priority and higher numbers of EVs to sell.
It's not exactly news that major automakers are getting more fully behind electric vehicles. Earlier this year, Ford said it would invest up to $50 billion in EVs through 2026, and will split its EV business and its internal combustion business into distinct units by next year so that investors can assess them separately.
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Why Volta Stock Rocketed Higher Today