Shares of Aston Martin Lagonda Global Holdings PLC (LON: AML) surged 10.3% today after news broke that the car manufacturer would be supplying safety cars to the Formula 1 circuit starting next year.
The news fueled Aston Martin’s rally extending its 4-day winning streak as investors piled into the company triggering a major rally in the company’s stock this month; the automaker’s shares are up 54% this month as the uptrend continues unabated.
Aston Martin launched an SUV version of its cars in August this year following in the footsteps of other luxury carmakers such as Lamborgini and Rolls Royce, which have also launched SUV versions of their popular sports cars.
The carmaker’s fortunes seem to be changing for the better since Lawrence Stroll, the billionaire owner of RacingPoint F1 team became the company’s executive chairman. The company deepened its collaboration with the Mercedes F1 team, which now owns 20% of Aston Martin.
Aston Martin is also set to return to the Formula One circuit following the renaming of the Racing Point team.
Investors are counting on the Aston Martin DBX being a hit with consumers given the growing popularity of luxury SUVs, but its a bit too early to tell whether the vehicle is a hit or miss with consumers.
Overall, Aston Martin stock is riding on a wave of goodwill from investors as Lawrence Stroll’s restructuring efforts, which include aggressive cost-cutting measures, destocking dealerships, and developing new cars play out over the years.
Aston Martin share price
Aston Martin shares surged 10.3% today to trade at a high of 83.75p having rallied from Tuesday’s closing price of 75.9p.