Dragonfly Energy (DFLI) is making headlines in pre-market trading today after a massive 78.6% surge on Thursday. The surge came after the energy storage company announced it had been chosen for funding by Nevada Tech Hub, a program designed to boost the state’s lithium battery supply chain.
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For context, Dragonfly Energy specializes in lithium-ion battery packs and energy storage solutions. Meanwhile, Nevada Tech Hub is a state-backed initiative designed to support technology and innovation companies.
What Nevada Funding Means for Dragonfly Energy
As part of this funding, Dragonfly Energy has been awarded about $300,000 to support modernization and workforce development. The funding, which does not dilute shareholders, will go toward achieving ISO 9001 certification, upgrading production systems, and improving battery manufacturing lines.
These upgrades could save the company six figures annually. This will further allow it to invest more in workforce training with partners like Truckee Meadows Community College and the University of Nevada, Reno.
CEO Dr. Denis Phares said the award is not just an investment in Dragonfly Energy but in Nevada’s future, adding that the non-dilutive funding will strongly support the company’s growth strategy.
What’s Next for Investors?
Dragonfly management expects to achieve positive EBITDA in the fourth quarter of 2025. Additionally, the new funding will drive operational improvements that could help the company reduce costs, improve efficiency, and boost long-term profitability.
Overall, the company’s growth is supported by rising electric vehicle (EV) adoption, increasing demand for renewable energy, and ongoing lithium battery shortages. While the stock offers long-term growth potential, it carries high risk, so careful timing and proper monitoring are essential for investors.
Is DFLI a Good Investment?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DFLI stock based on one Buy recommendation. Furthermore, the average stock price target of Dragonfly is $1.00, which implies a 6.54% downside risk.
