Nuvve Holding (NASDAQ: NVVE) as much as tripled this morning after announcing a landmark battery storage aggregation deal in Japan.
The agreement marks the country’s first such deal involving existing stationary storage batteries. Despite the meteoric rally, NVVE shares are trading at a fraction of their price at the start of 2025.
Moreover, Nuvve remains in the penny stock territory – raising concerns about the sustainability of its recent gains.
Why the battery storage deal matters for Nuvve stock
Investors are cheering NVVE stock on the Japan deal today, mostly because it’s a strategic win for the Nasdaq-listed firm.
It involves a high-voltage battery system in Tainai City with some 1,999 kW output and 8,170 MWh capacity, set to begin operations in the first half of 2026.
This positions Nuvve as a pioneer in Japan’s grid modernization efforts, validating its aggregation model for distributed energy resources.
The agreement also confirms a commitment to international expansion, which could open doors to new revenue streams and partnerships.
For a company that’s struggled to scale domestically, this move offers a compelling narrative shift and underscores growing optimism around its vehicle-to-grid (V2G) and energy storage tech.
Investors are betting that this transaction may be the first of many, potentially transforming NVVE into a global energy tech player.
Should you chase the momentum in NVVE shares?
Despite the excitement on Nov. 13, chasing the momentum in Nuvve stock at current levels could prove risky.
The company, based out of San Diego, CA, remains deeply unprofitable, with recurring losses and limited revenue visibility. Its balance sheet is fragile, and past financials show a pattern of dilution through equity offerings.
Additionally, after the explosive move this morning, NVVE is trading at a multiple that’s hard to justify given its current fundamentals.
Nuvve has a history of overpromising and underdelivering, which further makes this rally feel more speculative than sustainable.
Moreover, the Japan deal, while promising, won’t generate any revenue until next year. Therefore, momentum traders may find short-term gains, but long-term investors should tread carefully.
Nuvve’s penny stock status is a red flag
Another major red flag on Nuvve shares is that it remains a penny stock, even after an over 200% rally on Thursday, which makes it vulnerable to unusually high volatility.
Penny stocks are widely known for pump-and-dump behaviour, where early movers profit while latecomers suffer steep losses.
More importantly, the NVVE stock price reaction today resembles a meme stock rally because it’s disconnected to its fundamentals – and history shows that such rallies often reverse just as quickly.
Thin liquidity and limited institutional ownership further amplify risk. Without consistent earnings or a clear path to profitability, NVVE’s price action may be more about hype than substance.
Investors should remember that most penny stock rallies end with painful drawdowns, especially when fundamentals don’t support the valuation.
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