Municipal-Electric Grid Pact Sparks Nuvve's 38.9% After-Hours Surge

Nuvve Holding Corp (NASDAQ:NVVE) shares surged 38.9% in after-hours trading on Thursday, driven by a strategic partnership with the City of Socorro and Socorro Electric Cooperative to advance transportation electrification and grid modernization in New Mexico. The collaboration, formalized through a Memorandum of Understanding (MOU), targets six priority areas: grid modernization and resilience, school bus electrification, municipal fleet conversion, smart rate development, charging infrastructure expansion, and renewable energy integration. The agreement establishes a joint working group to coordinate projects and pursue state and federal funding, leveraging technologies like vehicle-to-grid integration and Battery-as-a-Service models.

Ted Smith, CEO of Nuvve New Mexico, emphasized the partnership's role as a "model for how municipal and cooperative utilities can collaborate to deliver resilient, affordable, and locally beneficial electrification projects". The initiative includes electrifying school buses using state funding and replacing aging municipal vehicles with electric alternatives, while also addressing grid vulnerabilities through distributed batteries and microgrids. Socorro Mayor Ravi Bhasker highlighted the collaboration's potential to "lower costs, improve reliability, and position our community as a leader in New Mexico's clean energy future".

The partnership aligns with broader efforts to integrate renewable energy and reduce energy costs through demand charge mitigation strategies. By expanding charging infrastructure and adopting vehicle-to-grid systems, the project aims to create a cleaner energy network. Socorro Electric Cooperative CEO Manuel Gonzales noted the opportunity to "identify where these projects can provide the greatest impact for our members".

Despite the positive developments, Nuvve's stock has faced significant challenges. The company's shares have plummeted 94.81% year-to-date, trading at a market capitalization of $5.64 million. Analysts project modest sales growth of 8.73% for the current fiscal year, though the stock remains burdened by debt and cash flow constraints. The after-hours rally reflects investor optimism about the partnership's potential to catalyze near-term funding and operational progress.

The agreement underscores growing momentum for utility collaborations in New Mexico, combining municipal resources with cooperative infrastructure to accelerate clean energy transitions. For Nuvve, the deal represents a critical step in scaling its vehicle-to-grid technology and Battery-as-a-Service models, which enable electric vehicles to function as dynamic grid resources.