Zapp Electric Vehicles Group Limited ( ZAPP ) shares are trading higher Thursday after the company signed a memorandum of understanding and intends to appoint Bounce Electric 1 Private as its contract manufacturing partner for sales of the i300 in India.

The Details:

Zapp EV noted that Bounce already operates a domestic vehicle assembly facility and may further assist with distribution of i300 in India. Zapp EV said both parties intend for Bounce to provide the necessary support for homologation in India while Zapp continues working toward commercial rollout and first customer deliveries of the i300 in Europe and Thailand in summer 2024.

“India is one of the largest markets in the world for sales of two-wheelers and the number of premium models sold there is estimated to be more than four times the number of all models sold in the US. Bounce already operates a certified vehicle assembly facility in India, so this partnership is expected to accelerate Zapp’s commercial rollout in that country," said Swin Chatsuwan, CEO of Zapp EV. 

Zapp EV shares are soaring on heavy trading volume and have been halted several times for volatility following the company’s announcement.

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Is ZAPP A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Zapp Electric Vehicles ( ZAPP )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Zapp Electric Vehicles ( ZAPP ) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Zapp Electric Vehicles ( ZAPP ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

ZAPP Price Action: According to Benzinga Pro, Zapp Electric Vehicles Group ( ZAPP ) shares are up 232% at $2.38 at the time of publication Thursday.

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