Freyr Expected to See Significant Gains, According to Morgan Stanley

Shares were up more than 7% in premarket trading Thursday. The stock has fallen about 13% on the year.
FREY YTD mountain FREYR, year to date
Freyr should be able to progress on commercial goals such as battery production and cell delivery that can then lead to subsequent funding events, Jonas said. Recently, the company achieved a goal of assembling, charging, and discharging battery cells at a plant in Norway and is likely to send sample cells to customers in the next month to validate.
The company is also expanding its strategic relationships, with Jonas pointing to a new agreement with Chinese battery manufacturer Sunwoda Mobility Energy that he said could improve technological diversification.

Though the bull-bear spread skews high, he said the stock’s recent underperformance and transparency from the company around execution has improved the risk-reward ratio. Freyr will start reporting key production metrics including uptime to show its operating capabilities. Yield, another metric that will now be reported, can get a boost as Freyr moves from partially automated production lines to fully automated facilities, according to Jonas. And data gathered from the Norway plant can help improve the process when ramping up other factories.

— AsumeTech’s Michael Bloom contributed to this report.