In exciting news for investors, Volcon, Inc. (VLCN) has experienced a remarkable surge of 77.5% in premarket trading, with shares trading at $5.93. This comes as the company makes headlines with its recent agreement to become the exclusive distributor of Super Sonic golf carts in the United States.
The distribution deal, announced on January 31, 2025, allows Volcon to distribute golf carts manufactured by Super Sonic Company Limited, a subsidiary of ODES Industry, to original equipment manufacturers (OEMs) across the U.S. These golf carts are produced in Vietnam and provide Volcon a unique competitive advantage due to significantly lower tariffs compared to those applied on similar vehicles imported from China.
According to Volcon's CEO, John Kim, “We are excited for the opportunity to be the exclusive distributor of Super Sonic golf carts in the US. Super Sonic (AODES) has a strong history of golf cart sales in the US, which is why Volcon selected Super Sonic to manufacture our golf carts.”
This strategic move not only enhances Volcon’s position in the growing golf cart industry but also sets them apart amidst a shifting trade landscape, where expensive tariffs on imports from China may prompt retailers and OEMs to seek alternative sources.
The U.S. has seen a significant number of golf carts imported from China, with tariffs now ranging from 149% to 500% due to unfair trade practices. In contrast, Volcon's relationship with Super Sonic allows their golf carts to be imported at a much more favorable tax rate of just 2.5%. This positioning could potentially lead to increased sales opportunities for Volcon, especially with large retailers already sourcing from Chinese manufacturers.
Furthermore, Super Sonic is reportedly developing innovative new designs for golf carts, promising to enhance performance, style, and comfort in the future. This aligns with Volcon's mission as a forward-thinking and environmentally conscious vehicle manufacturer, providing unique electric vehicles for the outdoor community.
With a premarket volume of approximately 1,497,636 shares, it will be interesting to see how this momentum carries forward for Volcon in the trading sessions ahead.
