Polar Power Inc [NASDAQ:POLA] is in a bullish breakout. In yesterday’s session, the stock rallied to close the day with gains of 92%. For short-term trading opportunities, the best entry point is at any price above $6, which is a key resistance level for the stock at this point. Nonetheless, even before it hits this price level, there are several fundamental factors that are likely to give this stock upside momentum in the near-term. Most of the factors likely to contribute to the growth of this business are external and mostly policy-related.
A few days ago, the governor of California stated that the State would ban the use of all carbon emitting vehicles in the State by 2035. This has huge implications on multiple industries especially those that deal in new renewable energy products. Polar Power Inc is one of the companies that is well aligned with the directives of this business. The company has over the years invested in renewable energy generation The company deals in direct current, and renewable energy systems in the U.S and globally and has its base in California. This means that it has its operational base right in the State where policies in favor of renewable energy are being enacted. This is a key factor that could see the productivity of this company grow, and by extension, the value of its stock.
Internationally, the momentum for renewable energy sources is picking up. This is most evident in the declining importance of oil majors in the stock markets. Several European countries have committed to getting rid of the internal combustion engine by the year 2040 and are already making structural shifts in favor of renewable energy. All this points to a growing market for renewable energy sources, which by extension means that the market for Polar Power is growing too.
Internally, the company has what it takes to grow long-term. It recently announced that it had finished the private placement deal of $2.8 million. The deal saw the company sell a total of 1.25 million shares at $2.25 a share. Investors also got a warrant to buy an equal amount of shares at a price of $3.13 per share. The company stated that it would use the money as working capital.
About Polar Power Inc
Polar Power Inc makes and sells DC power generators and renewable energy solutions. It is headquartered in Gardena, California.