The Volex PLC (LON: VLX) share price edged 4.96% higher after announcing that it is now a licensed Tesla partner for the North American Charging Standard (NACS) EV Charging system.
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Volex noted that it is now a selected global manufacturer of the authentic NACS coupler and is stocked and ready to supply automotive OEMs and charging infrastructure suppliers immediately.
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Investors cheered the news, as evidenced by the slight rally in Volex’s share price. However, Volex shares did not rally as much as anticipated, indicating that investors were waiting for much bigger news from the company before they could rush in and start buying the stock.
Volex is a specialist integrated manufacturer of critical power and data transmission products. Hence, it was an obvious choice for Tesla, given its solid reputation built over a century since its founding in 1892.
The last significant news from Volex before today’s announcement was two days ago on Monday, when the company revealed that it had received competition authority clearances in Turkey and Macedonia. Hence, all the conditions for acquiring Murat Ticaret Kablo Sanayi A.Ş. (Murat Ticaret) had been satisfied.
The company now expects to complete the acquisition of Murat Ticaret later this month. The acquisition is crucial for Volex since it will help the company diversify its business by providing significant exposure to a new, global off-highway manufacturing end market.
Volex has been developing its integration plan since announcing the acquisition in June. It has been working closely with the local management to determine how combining the two businesses would benefit its customers and generate significant shareholder value.
Nat Rothschild, the Executive Chairman of Volex, commented: “As a selected supplier of the NACS coupler, this further validates that Volex continues to be the trusted manufacturing partner of Tesla's charging system technology to the world's leading EV manufacturing companies and suppliers who utilise the NACS EV Charging system.”
Volex share price.
The Volex share price rose 4.96% to trade at 327.75p, from Tuesday’s closing price of 312.25p.
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