Microvast Stock Is Moving Higher On Company Response To DOE

Microvast Holdings Inc MVST shares are trading higher. The stock fell more than 35% on Tuesday after the U.S. Department of Energy (DOE) canceled contract negotiations. The company issued a response Wednesday morning.

What Happened: The DOE decided to withdraw its $200 million grant for Microvast this week, citing potential ties to China.

In response to the decision, Microvast issued a statement noting it's surprised by the decision given that the company has zero relations with the Chinese government. 

"Microvast is based in Texas, its shares are traded on Nasdaq, and the operations for our global business are centralized in the U.S. Neither the Chinese government nor the Chinese Communist Party has any ownership in the Company, nor do they control or influence Company operations in any way. The Company is therefore considering all of its options," said Yang Wu, founder, chairman, president and CEO of Microvast.

Wu, who is an American citizen, noted that the company plans to continue to "invest significantly" in its U.S. expansion regardless. Microvast reaffirmed its commitment to help the U.S. expand its battery supply chain and manufacturing initiatives.

"Our priority remains completing our battery manufacturing facility in Clarksville, Tennessee. This facility is a key business focus for us and will be a key contributor to our growth in the coming years," said Craig Webster, CFO of Microvast.

Microvast said the decision by the DOE will not impact the company's full-year guidance, which it raised at the beginning of the month.

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MVST Price Action: Microvast shares were up 4.17% at $1.46 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Microvast.