The Chinese company Happiness Development (NASDAQ:HAPP) may be primarily known as a nutrition company but on Wednesday the company announced that it was making plans to enter the fast-growing electric vehicle development space.
Trading Data
On Wednesday, HAPP stock surged 31.67% to $0.2378 with 60.02 million shares, compared to its average volume of 1.33 million shares. The stock moved within a range of $0.2280 – 0.3390 after opening trade at $0.3130.
Happiness Development Entered into Agreement for Sales up to 2000 Electric Vehicles
The company announced yesterday that it was making plans to develop as many as 2000 electric vehicles. Perhaps more importantly, it was also noted that Happiness Development already managed to line up an order for the vehicles that it plans to develop. The news came as a massive boost to the stock and as investors piled on to the Happiness Development stock, it soared by as much as 32% for the day.
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The electric vehicles are going to be sold through Taochejun, which is a subsidiary of Happiness Development and the order for the 2000 vehicles has been placed by Fujian Yiluba Automobile Service Consulting.
In this context, it is necessary to note that the deal is going to be completed over the course of the coming three years and the total valuation of the orders placed by Fujian Yiluba stands at $30 million. It may just be the right time for investors to take more of an interest in Happiness Development.
Key Quote
“168 is another large auto company we plan to cooperate with, while previously we have announced the cooperation with Ruili and Shanghai Automobile Trading (Chexiang.com). Taochejun’s brand and its distribution ability are being recognized by a number of car manufacturers, large auto trading companies, and now a large auto service company. We believe that with the increasing orders, HAPP’s automobile business will achieve optimistic results in the following years,” said Mr. Xuezhu Wang, CEO of the Company.
Technical Data
HAPP stock is trading below the 50-Day and 200-Day Moving averages of $0.27 and $0.62 respectively. However, the stock is trading above the 20-Day moving average of $0.22.
