ESS Tech (NYSE: GWH) had a shaky kick-off to its public trading debut on Monday, yet it didn’t take long for the visionary battery company to turn heads throughout yesterday’s trading, and increasing gains by a further 20% in Tuesday premarket.
Gaining roughly 27% yesterday, the rally came as a surprise for many; following an underwhelming fundraiser from the company’s SPAC merger – raising only $308 million rather than the anticipated $465 million.
The investor cash-out hindered the stock price growth initially but didn’t stop the price soaring just moments after, following a supportive CNBC article proclaiming the importance of backing from Breakthrough Energy Ventures – the clean energy fund with Bill Gates at the helm.
The article sang all the right praises for ESS Tech, interestingly missing out on the dwindling SPAC investors and instead focusing on the cutting-edge battery technology – sending the stock price soaring not long after publishing.
ESS is known for iron-based batteries that allow for energy storage in clean electricity generators such as solar and wind farms – an emerging technology ushered in by the growing condemnation of fossil fuels.
Clean energy is a booming sector for keen future-thinking investors, and evidently, ESS tech has caught the eye. With plans to use rising capital to expand manufacturing and sales, as well as two promising battery deals with Enel Green Power and SB Energy, the future for ESS tech is ladened with potential. Should the company meet its revenue targets of $37 million next year and $300 million in the following, this could be a clean-energy stock worth watching.
The ESS Tech stock price currently sits at $13.65 premarket, rallying a further 32% from Monday’s close.
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