What's Going On With ePowersports Company Volcon Stock Today?

Shares of electric power sports company Volcon Inc. VLCN are trading higher on Tuesday.

The company has revealed a strategic alliance with Super Sonic Company Limited, a division of ODES Industry, to become the sole distributor of AODES-branded golf carts to original equipment manufacturers (OEMs) in the U.S.

The agreement positions Volcon to capitalize on favorable market trends as tariffs on Chinese imports continue to rise.

Recently, the American Personal Transportation Vehicle Manufacturer Coalition petitioned against certain low-speed personal transportation vehicles imported from China. The Department of Commerce reviewed Chinese manufacturers who sold such vehicles and determined they were unfairly competing due to such government subsidies.

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As a result, countervailing duties and antidumping tariffs were assigned to Chinese manufacturers, which cumulatively range from 149% to 500%.

Volcon’s partnership with Super Sonic (AODES) in Vietnam means golf carts are taxed at 2.5%, as opposed to up to 500% for units from China. This leaves a potential opportunity to sell more units to dealers and big box retailers.

John Kim, Volcon’s CEO, said, “Their Vietnam manufacturing facility provides a competitive advantage due to lower tariffs for importing units compared to units coming from other Asian countries.”

According to the U.S. Census Bureau, 114,000 golf carts, valued at $450 million, were imported from China in 2023. However, these imports are now facing scrutiny due to concerns about unfair competition fueled by foreign government subsidies.

Price Action: VLCN shares are trading higher by 37.7% at $4.60 at the last check Tuesday.

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