Microvast’s ‘software-defined battery’ patent sparks investor confidence and stock gains
Microvast has made headlines this week after filing a patent for its new 'software-defined battery' technology. The company’s shares climbed to €3.18, marking a 1.60% rise today and extending last week’s 29.65% surge. Investors are reacting positively to both the innovation and a key partnership with Škoda Group.
The newly patented technology allows real-time monitoring and AI-driven control of large battery fleets. Analysts view this as a strategic shift towards higher-margin finance, which could boost recurring revenue. Microvast’s financial health appears solid, with a debt-to-equity ratio of 0.21, suggesting cautious leverage.
In Q3 2025, the company reported revenue of $123.3 million, a 21.6% increase from the previous year. Gross margins also improved, rising from 33.2% to 37.6%. However, earnings per share came in at $0.04, just below the $0.05 forecast. The partnership with Škoda Group is another key driver of investor confidence. The two firms plan to unveil public transportation prototypes by 2026. Microvast has also been included in the National Security Index, with a weighting of around 2.56%.
The success of Microvast’s new battery technology, along with its prototype rollout and commercial adoption, will shape its future growth. With shares rising and a strong financial position, the company is now focused on delivering on its software-driven strategy. The coming years will test whether these moves translate into sustained profitability.
