ELVA Stock Surges as Amazon Deal Ignites Rally

The shares of Electrovaya Inc. (ELVA) soared by 49% on Wednesday, marking its best day in over 13 years following a commercial agreement with Amazon.com Inc. (AMZN).

Roth Capital analyst Craig Irwin said investors should evaluate the pact in the context of Ford Motor Co.'s (F) energy storage system agreement with French energy giant EDF.

The deal between Electrovaya and Amazon involves supplying more of its Infinity Battery Technology for warehouse material handling operations, supporting continued use of Electrovaya's batteries in Amazon's forklifts and similar equipment.

As part of the transaction, Amazon received warrants to buy up to 13.9 million new Electrovaya shares at a price based on the company's recent average stock price.