One struggling penny stock may be about to get a second chance at market success. Cenntro Electric Group (NASDAQ:CENN) stock has been trending downward since early 2023, when threats of being delisted from the Nasdaq first sent the electric vehicle (EV) maker into a tailspin. Since then, it hasn’t been an easy few months for the company. However, today did bring some good news.
Specifically, Cenntro announced that Nasdaq has granted a 180-day extension for CENN stock to regain compliance and reach $1 per share. While that will take some growth, the stock trended back in the green today, closing up by more than 1%.
Does this mean CENN can reach the $1 mark before the Dec. 18 deadline? Let’s take a closer look.
Can CENN Stock Reach $1?
On the surface, there isn’t much to suggest that Cenntro Electric can reach the necessary $1 mark. Although CENN closed in the green today, it’s still down more than 24% year-to-date (YTD). What’s more, while the company reported multiple EV deliveries earlier than expected and received an Environmental Protection Agency (EPA) certification in December, today marks the first positive update the firm has seen in months.
That said, recent performance aside, CENN stock isn’t one to write off completely. Back in December, Cenntro also reached an important milestone, announcing that it had started to ship EVs to Europe. Additionally, as InvestorPlace previously reported, for all its volatility Cenntro competes mainly with even less stable automakers like Mullen Automotive (NASDAQ:MULN) and Arrival (NASDAQ:ARVL).
Like Cenntro, Mullen has been in danger of delisting from the Nasdaq for months. But unlike Mullen — at least in my opinion — the EV maker actually has a chance at regaining compliance. If the company can generate one more positive catalyst, CENN stock may reach $1 per share and stay there.
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Read More:?Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
