Sunworks Inc [NASDAQ: SUNW] is running wild this morning and is up by over 100%. This is in the follow-up of yesterday’s price action when the stock edged higher by 50%. The interesting aspect to it that the rally has nothing to do with the company’s news, but an improvement in market factors. Yesterday, the governor of California twitted that the State intends to ban all greenhouse gas emitting vehicles by the year 2035.
In a series of tweets, the governor stated that transport was behind over 50% of all of California’s greenhouse gases, 95% of all the diesel emissions in the State and 80% of all pollution that causes smog. He further stated that the State was coming together with 15 other nations that are working on getting rid of gasoline cars
While this spells doom for companies that are heavily invested in fossil fuel-based engines, it creates opportunities for companies that are focused on renewable energy sources. Sunworks Inc is one of the companies that stand to benefit from this change in policy in the State of California. That’s because it already has an established base in the State, and also the capacity to develop photovoltaic power systems at scale.
This makes it a top potential beneficiary for the now potentially mega mobility industry that is about to make a complete structural shift in just over a decade. The company key area of potential growth are in the development of EV batteries, a market that is set to record exponential growth in the next decade. California is one of the richest States in America, which means the consumer demand for EV is one of the highest in the world.
It is also interesting that California is working with 15 other countries in banning the use of gas-fueled vehicles. This further points to massive market potential for companies that are in the field of e-mobility, to sell their pa much wider market.
Even in the U.S, climate change will eventually force all States to do the same. For context, the number of hurricanes are getting more frequent and they are more intense. Other weather elements are getting worse too, and the only way to change course is to make a shift away from combustion engines, and that’s to the benefit of companies that focus on renewables like Sunworks Inc.
Sunworks Inc develops, photovoltaic power systems. It is based in Roseville, California.