Shares of microcap renewable energy company SPI Energy (SPI) - Get SPI Energy Co Ltd Report jumped more than 40% Thursday after the company announced a partnership with Shaanxi Tongjia, a maker of all-electric logistic vehicles in China.
SPI's EdisonFuture subsidiary will cooperate with Tongjia to customize, develop, produce and sell next generation smart electric pickup trucks and electric logistics vehicles.
Tongjia will provide parts and support to EdisonFuture's assembly plant in Fresno, Calif., where the company will complete assembly of the vehicles, including software additions and other parts produced locally.
"As the multi-billion-dollar last mile delivery market in North America continues to see rapid growth, logistic operators are looking to EV solutions to lower costs and increase profits. Through our partnership with Tongjia we believe we can meet this growing demand," said SPI CEO Xiaofeng Peng.
SPI also is involved in solar energy projects that sell electricity to the grid in countries like the U.S., U.K. Greece, Japan and Italy.
SPI launched EdisonFuture in late September, saying at the time that "as Tesla has demonstrated, an end-to-end business model in the renewable energy space can generate significant value. With the addition of EV and EV charging segments to our diverse solar business, we are positioning SPI Energy for the future of renewable energy."
Electric vehicles accounted for about 2.6% of global car sales, but sales topped 2.1 million in 2019, surpassing the record the industry set in 2018.
Last week, SPI announced that it regained listing qualifications on the Nasdaq after marking 10 consecutive trading days of having a market value of $15 million or greater as is required by the market.