Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
EVmo (OTC: YAYO), a provider of vehicles to rideshare and gig economy firms, said on Wednesday that it has acquired a fleet of Tesla (NASDAQ: TSLA) vehicles and has committed to going all-electric by the end of 2021.
EVmo, formerly YayYo Inc, said Tesla was an “obvious choice”, and it is excited to be one of the first Tesla rideshare fleet partners in the US that will deploy electric vehicles rather than gasoline-powered vehicles for services like Uber and Lyft.
Steven Sanchez, EVmo’s CEO, said: “The explosive growth in the gig economy and evidence that it's cannibalizing more climate-friendly mass transit makes it important for EVmo to go all electric.”
Both Uber and Lyft announced that they will be transitioning to 100% electric vehicles over the next few years.
“We are confident our all electric fleet will drive a successful business model for the future, becoming the first to exclusively deploy electric vehicles (EVs) for the gig economy will position us as a leader in the space and is a natural evolution from our mixed energy fleet,” added Sanchez.
The company already has 10 Tesla’s Model 3 on its books, and today’s announcement will see them add to that number.
EVmo’s share price is up 19.77% since the announcement at $5.15 per share. Tesla shares are continuing Tuesday’s rally, gaining 4% so far in Wednesday’s session.
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