What happened
Shares of Solid Power (NASDAQ: SLDP) gained 19.2% in February, according to data from S&P Global Market Intelligence. The stock climbed in conjunction with new filings made with the Securities and Exchange Commission (SEC) and with the company's participation at the Wolfe Research Global Auto, Auto Tech and Mobility Conference on Feb. 23.
With gas prices rising last month, the electric vehicle (EV) battery-technology specialist's share price likely also benefited from rising interest in EV and renewable energy technologies. Solid Power was taken public through a merger with a special purpose acquisition company (SPAC) last December, and the company's share price is now down roughly 44.5% since market close on the day it went public.
So what
Solid Power is an innovative, potentially disruptive player in the battery-technology space. Compared to the the lithium-ion batteries that are currently the norm in most EVs, the company's solid-state batteries have the potential to lead to significant improvements in charge capacity, charge time, and safety. Solid Power has attracted investment from auto leaders including Ford and BMW, and the market seems to have been pleased with a series of SEC filings last month showing heavy insider and institutional ownership positions.
Image source: Getty Images.
Now what
Solid Power stock pulled back a bit early in March amid selling pressures affecting the broader market, but it has since recovered. The company's share price is now roughly flat across this month's trading.
With gas prices rising to their highest levels in more than a decade in many parts of the world, Solid Power stock is holding up well compared to many other growth-dependent stocks. Some analysts are projecting that gas will go on to reach all-time highs in the near future, and that could factor into the stock's near-term performance.
The company has a market capitalization of roughly $1.2 billion and is valued at roughly 416 times this year's expected sales. That's a hugely growth-dependent valuation, but Solid Power's focus on EV battery technology could position its stock to be relatively sturdy in the current market climate.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
