CBAK (CBAT) Surges 300% in 5-Month: What’s Going On?

It is often a good idea to look into stocks that might have recorded significant gains over a reasonable period of time and the CBAK Energy Technology (NASDAQ: CBAT) is certainly in that category.

CBAK (CBAT) Surges 300% in 5-Month: What's Going On?

The CBAK Energy stock has been in the middle of a remarkable rally since September last year and since then, it has managed to deliver gains of as big as 300%. One of the major reasons behind the continued rally in the battery company’s stock was tied to a report from January 2021.

In the report, it was stated that the Chinese electric vehicle maker NIO is on the verge of launching new models and will be deploying batteries powered by lithium iron phosphate. The report did not mention anything about CBAK but it nonetheless sparked speculation about the possibility of NIO ordering batteries from the company. Later on, in January, the company announced that it inked a yearlong deal with Chengdu Raja New Energy Automotive Technology for supplying lithium-ion batteries. That proved to be another significant boost for the stock.

Jack Dawkins

Finance and Tech Contributor