This has been a tough time for penny stocks as there have been periods of time this year in which the stock market has taken a big hit and trading in the OTC vanished with all liquidity gone. But we are in a period of sideways action that is bring speculative trading back into the markets. Today shares of VaporBrands International, Inc. are up over 40% on the US OTC in morning action. It actually is one of the top traded stocks on that exchange and some are seeing it as a play into Telsa (NASDAQ: TSLA) earnings, because it has billed itself as an electric vehicle stock. Check out the chart.
As you can see the stock came alive this week. It has a market capitalization of around $21 million and its financial filings show that it did not earn a single dollar in revenue last year. It’s a concept company, and the concept it is now engaged in is the design of electric vehicles. A few weeks ago it issued a press release with the title “E-Cite Motors Provides First Details of New Affordable EV Sportscar.” VaporBrands International bought E-Cite in a reverse merger. According to this release, ” VaporBrands International, Inc. dba E-Cite Motors Group, (OTC PINK:VAPR) has released details of its new affordable electric sportscar that is currently in development. The vehicle codenamed the “E-CGT” is a two seat sportscar that resembles a modern version of a legendary vehicle that was produced in the late 60s and early 70s. The E-CGT also features an easily removable hardtop section of the roof that stores in the front boot while still providing storage in the trunk for at least two sets of golf clubs. The vehicle will be available as both an affordable entry level fiberglass bodied variant as well as a more performance orientated “S” version sporting a carbon fiber body and upgraded power and suspension.”
“E-Cite Motors has developed designs that allow the production of vehicles utilizing a skateboard style chassis or space frame chassis that use electric motors. This allows for configurations ranging from low powered batteries and only a single motor on up to a high-powered 1000+hp performance vehicle utilizing AWD and 4 motors,” the press release explains.
There are no details in the release on where these cars will be made or who will actually make them.
The stock is on fire and there is tremendous excitement on Twitter about it today as you can see from these tweets.
$VAPR The start of something beautiful$VAPR lows of .0078 hits a high .086 and still continues— Radio Silent (@RadioSilentplay) July 18, 2022
Remarks: Shows the strength of low floaters and what the OTC a potential truly is https://t.co/2YlheE1k94 pic.twitter.com/DurUIZcb3n
What does Tesla stock (NASDAQ: TSLA) have to do with this one? When Tesla has earnings it often draws traders into buying and trading other electric vehicle stocks ahead of its earnings report as it gets people thinking about EV. That seems to be one of the things helping VAPR this week, or the people put out the release this week with that thought in mind. I have no position in this stock and am not trading it as it’s an extreme speculative situation.