Enovix Corporation (NASDAQ: ENVX), a lithium-ion battery producer, has received its first substantial supply contract. This gave this week’s quotes a strong positive boost. ENVX was trading at $11.02 on May 4th. The stock had a market capitalization of $1.8 billion.
Enovix said that it has been awarded a contract to supply batteries to one of the world’s largest electronics businesses. The client’s identity was not mentioned, yet this message was enough for the stock market to increase quotes by 36% at the next auction.
It should be mentioned that the contract calls for Enovix products to be tested for more than a year in compliance with the client’s standards. Enovix will be given an order for mass production if the tests are successful.
However, this is a significant positive signal of large industry interest in Enovix advances.
This year has been a watershed moment for Enovix, as the business begins to ship batteries made on its automated manufacturing line. Enovix set out to develop manufacturing techniques that are scalable, low-cost, and capable of meeting the massive demand of the future electric economy, which will see batteries used in everything from billions of IoT devices to electric vehicles and electric air and sea transportation.
Enovix forecasts a yearly income of more than $1 billion once present manufacturing reaches full capacity. Simultaneously, the company expects to make its first profit in the second quarter of 2022. The company’s strength is its reliance on the growing demand for batteries, which is still in its early stages of development.
On Thursday, shares in Enovix Corporation fell -5.72% to close the day at $10.39. The stock of ENVX has gained 9.83 percent in the last five sessions and -24.44 percent in the last month but has lost -61.91 percent year-to-date. The 50-day moving average of $12.95 is higher than the 200-day moving average of $19.20 for the company. Furthermore, the stock now has an RSI of 43.33.