Autos

Is the Newest Company to Hit the EV Scene a Contender?

The excitement surrounding electric vehicles (EV) and autonomous vehicles seems to be building more every day. Companies like Tesla and Nio have seen their shares more than sextuple this year alone. A new company entered the ring on Tuesday and is saw its shares nearly double in the premarket, and it could be a candidate for a multi-bagger in the future.

Aurora Mobile Ltd. (NASDAQ: JG) is a Chinese mobile developer that saw its shares practically double on Tuesday after announcing a partnership with a global leading new energy vehicle manufacturer. However, the company declined to say who the partnership was with in the release.

The goal of this partnership is to help the brand auto manufacturer enhance its operational and service efficiency and deliver an enhanced intelligent driving experience for its customers.

Through the partnership, Aurora Mobile will leverage its artificial intelligence driven targeted notification push services and machine learning-based operational analytics capabilities to help its partner gain better insights into users’ operating habits and needs, improve user experience and operational efficiency, and further optimize smart driving functionality.

Even though Aurora Mobile did not directly name its partner, the firm did give some clues as to who it may be. The firm noted that this automaker is primarily engaged in the design, development, manufacture and sales of green energy vehicles, including high-performance sedans, sport utility vehicles and semi-trucks with global deliveries exceeding 100,000 in the third quarter of 2020.

Companies with a manufacturing footprint exceeding 100,000 global deliveries in the third quarter narrow down the list of potential partners. However, it would not be surprising to see a company like Tesla come out as the partner.

Aurora Mobile stock traded up more than 65% to $5.19 after the first half hour of Tuesday’s trading. It has a 52-week range of $1.40 to $5.43 and a consensus price target is $3.04. Following the announcement, the stock was up about 95% at $6.23 in early trading indications Tuesday.