Volcon Inc. (NASDAQ: VLCN), has entered into a new agreement of distribution with Super Sonic Company Limited.
The shares of this all-electric LUV maker have risen more than 150% in the past two days.
Volcon will be the exclusive distributor of Super Sonic golf carts for US.
The Texas-based firm is free to continue selling products to customers under its own brand, as long as the customer pays a royalty of 5.0% on the total order value.
Volcon’s stock price is still down 40% from six months earlier despite today’s increase.
What is the significance of Super Sonic stock news for Volcon?
Volcon is pleased to work with Super Sonic, as their Vietnam-based facility offers a competitive edge due to the lower tariffs for importing products compared to other Asia countries.
Super Sonic continues to purchase Volcon in 2025. Each quarter, Super Sonic will get about 1.0% VLCN for every 1,000 units.
According to a press release released on Tuesday, the manufacturer of golf carts will also receive a warrant for 10% Volcon shares discounted if they order 10,000 units before February 1, 2026.
Volcon’s stock is also a beneficiary of the Super Sonic partnership because Volcon has been working on new golf cart designs which “could be revolutionizing future performance, comfort, and style.”
VLCN is in a steep downtrend
Volcon’s stock has been suffering due to deteriorating finances. Today’s announcement is a welcome relief.
The EV company missed the Street’s estimates for its third-quarter earnings in October. VLCN reported a 3.1% decline in adjusted revenue and earnings for the third quarter.
The ePowersports company cited the weather as a reason for lowering its guidance on adjusted EBITDA at that time to $2.0 billion.
Volcon doesn’t offer a dividend to make it more appealing to investors.
Does it make sense to invest in Volcon?
Volcon confirmed on Tuesday that Super Sonic will receive a seat in its board of directors if it orders exceed 10,000 units by 2025.
It is a one-year deal, but both parties can agree to extend it annually.
Volcon is expecting to work with Super Sonic in order to extend its product range beyond its recent launch of the HF1 as well as strengthen its position on the market. John Kim, its CEO:
Super Sonic’s (AODES), a company with a long history in golf cart sales, was chosen by VLCN to produce our golf cars.
Volcon is a stock that Wall Street analysts do not cover very much, making it high risk.
The post Why the EV Stock soared by 150% on Monday may change as new information becomes available.
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