Oct. 12, 2025 at 9:40 AM ET6 min read

ESS Tech Reports Surge in Stock: Unveils New Deal with Salt River Project

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Driven by news of ESS Tech Inc.’s strategic expansion initiatives, stocks have been trading up by 120.93 percent.

Latest Developments in Energy Storage

  • An impressive stock surge of up to 158% was recorded after announcing a 10-year supply deal with Salt River Project, showcasing significant market momentum.
  • Roth Capital’s upgrade from Neutral to Buy, accompanied by a new target price of $3.50, reflects growing investor confidence, particularly following the strategic energy storage pilot project announcement.
  • Google’s collaboration in funding the new 5MW/50MWh storage initiative suggests strong industry backing and innovation in non-lithium battery technology.
  • The ambitious Project New Horizon promises enhanced grid reliability in Arizona’s challenging climate, directly aligning with Salt River Project’s sustainability objectives.

Industrials industry expert:

Analyst sentiment – positive

ESS Tech (NYSE:GWH) finds itself in a precarious financial position, characterized by severely negative profitability metrics, as evidenced by an EBIT margin of -1255.6% and a gross margin of -629.6%. Despite generating a modest $6.3 million in revenue, the company’s financial health is impaired by a striking $12.88 million negative cash flow from operations this quarter and a working capital deficit of $12.79 million. Total debt to equity stands modestly at 0.26, yet with an asset turnover of only 0.1, the firm’s ability to generate sales relative to its asset base remains underwhelming. These fundamentals highlight ESS Tech’s urgent need for strategic capital allocation to stabilize its finances.

Technically, ESS Tech is witnessing volatile price movements. Recent weekly data indicates significant bullish momentum, showcased by a sharp rise from a close of $2.35 to $3.8, implying heightened investor interest likely spurred by positive company announcements. Volume patterns during this period suggest strong institutional accumulation. Traders should adopt a long bias, particularly given the price surge above the crucial resistance level of $3.00, now acting as support. A potential breakout target could be $4.50, should volumes sustain. However, caution is advised if price falls below $3.00, warranting a stop-loss strategy.

The catalyst for recent share price volatility is rooted in the announcement of a long-duration energy storage project with Salt River Project and Google’s involvement, boosting investor confidence. The market has reacted positively, with shares surging over 129% following these developments. Compared to sectoral benchmarks in Industrials, ESS Tech appears well-positioned to outpace average growth rates, contingent upon successful project execution. Analysts’ revised price target of $3.50 reflects enhanced growth prospects in non-lithium battery technology. Given these factors, the outlook for ESS Tech is cautiously optimistic, with critical support at $3.00 and resistance at $4.50.

Candlestick Chart

More Breaking News

Weekly Update Oct 06 – Oct 10, 2025: On Sunday, October 12, 2025 ESS Tech Inc. stock [NYSE: GWH] is trending up by 120.93%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Recent market activities have placed ESS Tech under the spotlight, with stock prices displaying a remarkable recovery. Following an impressive jump to $3.8 per share on October 10, 2025, from a low of $1.72 just a day earlier, the surge underscores robust speculative interest. This volatile movement is attributed to the market’s reaction to the recent strategic agreements and partnerships.

Analyzing recent financial disclosures, ESS Tech reveals significant negative figures in profitability margins, with a gross margin of -629.6% and an EBIT margin of -1255.6%. These figures underscore the challenges faced in achieving profitability despite revenue growth of $6.295 million reported. The company’s balance sheet reflects a total equity of $3.304 million against liabilities of $36.313 million, further highlighting substantial financial pressures. Furthermore, enterprise value is noted at a stark $44.9 million, bringing focus to the pressure yet potential involved in the company’s present trajectory.

Key financial ratios indicate operational inefficiencies but also an inherent potential given the renewed market confidence from strategic collaborations. The remarkable stock performance post-announcement showcases speculative optimism amidst prevailing operational and financial challenges.

Conclusion

In conclusion, ESS Tech’s recent developments illustrate a pivotal turn in market perception through strategic partnerships and industry validation. As the company navigates complex financial dynamics, the present upscaling in stock value vivifies a consensus around both short-term trading advantages and long-term innovation-driven strategies. Despite current profitability challenges, the renewed trader confidence endorses ESS Tech as a potential frontrunner in shaping sustainable energy technology. This burgeoning ecosystem indicates a challenging yet promising opportunity trajectory for speculative traders navigating risks endemic to the technology and energy markets. However, as Tim Bohen, lead trainer with StocksToTrade says, “If you’re still guessing at the end of your analysis, it’s probably not a trade worth taking.” This serves as a reminder for traders to ensure due diligence before committing to positions in such a volatile landscape.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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