Romeo Power Inc. (RMO) stock recently traded at $8.02 which is a 3.14% downward movement. The RMO stock previously closed at $8.28. RMO stock however soared in the pre-market trading session by 11.97% at the time of writing.
The recent positive movement in the RMO stock came adjacent with the press release of Romeo stating that it entered into a long-term supply agreement for battery electric vehicles.
About Romeo Power (RMO)
Romeo Power is essentially an auto-parts Company that specifically focuses on manufacturing and selling electric vehicle components and parts. It is an energy tech leader that has scaled up its electrification solutions and now sells diverse commercial applications. Its flagship products are battery management systems as well as complex hardware applications. Romeo Power was founded in 2016 and is headquartered in LA.
The company also has a mega manufacturing facility which envelopes 113,000 square feet of land upon which it was built. This allows it to combine the design and manufacturing sector under one-roof which allows it to excel in the craft of the most complex and efficient application designs.
RMO stock is pushing through backlash and investigations
There are several investigations being made on Romeo Power for announcing on 30 March 2021 that its projection for 2021 of $140 million revenue has been revised due to the shortage of battery cells now to $18-4. This caused a 19.7% slump in the stock price on 31st March which led the RMO stock to close at $8.33.
Previously the company announced on 29th December that it has gone under a SPAC deal completion and that on 30th December RMO stock will start publically trading. Estimation of revenue for 2021 was then made.
The company is being investigated now many firms including Kaplan Fox and Bronstein for potential securities fraud.
Romeo pursues a long term deal with PACCAR
Amidst these investigations and allegations, Romeo Power has been steadily running its operations and seeking out more partners for long-term supply agreements. Today ROM stock is moving upwards in the current trading session because of the announcement that it has entered into a long-term deal with PACCAR (NASDAQ: PCAR). PACCAR is the manufacturer of high-quality Trucks of each light, medium, and heavy-duty variant.
The specifics of the deal are that the supply and provision of battery packs, modules, and battery management systems (BMS) for PACCAR. Furthermore, the agreement specifies that Romeo Power will be a battery supplier for PACCAR’s Peterbilt 579 and 520 BEVs through 2025 in the United States and Canada.
What is the outlook for RMO stock’s operational performance?
The shortfall in the battery cell capacity industry-wide has affected the manufacturing and supply distribution of Romeo Stock which affected the RMO stock performance. However, Romeo Power is adamantly in pursuance of long-term supply agreements for battery cells from several preferred providers. Romeo Power has also not deterred from its quality and validation assurance process for cells when looking for their procurement and contracted order backlog.