Electric vehicle infrastructure company Volta Inc. (NYSE: VLTA) recently revealed that it has collaborated with gas and electric utility holding corporation Southern Company to launch PredictEV Fleet, a solution to help customers transition from commercial fleets to electric vehicles.
Following the news, shares of the company declined 2.7% on Monday. However, the fall can be attributed to wider market concerns. The stock pared its losses marginally to close at $2.91 in the extended trading session.
Strategic Impact
With its new solution, the company plans to serve its customers by recommending a range of EVs to replace internal combustion engine vehicles with similar specifications. Further, it will provide the customers with the required EV supply equipment to support the charging needs of their fleets.
Southern Company expects to use the product to steer its plans to meet rising EV demand and create new EV product offerings for its customers.
Management Commentary
The Executive Vice-President of Network Operations at Volta, Drew Bennett, said, “Nearly one in every five vehicles in the U.S. is owned by a company, making fleet electrification an important business opportunity and a critical component to a carbon-free transportation future for all. Our fleet product enables data-driven electrification planning for both fleet operators and the utilities that serve them to ensure strategies are future-proof and efficient.”
Stock Rating
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on two Buys and three Holds. Volta’s average price target of $7.4 implies that the stock has upside potential of 157.8% from current levels. Shares have declined 54.5% over the past year.
Investors’ Stance
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on VLTA, as 2.6% of portfolios tracked by TipRanks increased their exposure to VLTA stock over the past 30 days.
Conclusion
Volta’s collaboration with a leading energy company like Southern Company to launch an all-encompassing EV solution is likely to make the process of EV adoption for customers more efficient and hassle-free.
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