Massimo Group (NASDAQ:MAMO) shares jumped 38.86% to $1.37 in after-hours trading on Wednesday after the Texas-based company announced a strategic cooperation agreement with Chinese intelligent service robotics developer Shenzhen AIBO Robotics Co., Ltd., marking its entry into commercial automation and AI-enabled robotics.
MAMO Eyes AI Upgrades To Existing Platforms
Under the agreement, Massimo plans to explore AI-driven upgrades to its golf cart and utility vehicle platforms, including semi-autonomous navigation, obstacle detection and remote monitoring. The company also intends to evaluate patrol-support and inspection assistance use cases in managed environments, leveraging its U.S.-based assembly capabilities to localize AIBO’s systems for North American deployment.
CEO David Shan said, “We believe MAMO is positioned to evaluate practical automation applications across a range of real-world environments.”
Massimo said it believes the partnership aligns with its core strengths in equipment assembly, electromechanical integration, supply chain coordination, deployment execution and operational support, potentially supporting its expansion into robotics and intelligent automation.
The company also stated a dual-market strategy across the U.S. and China may drive long-term growth in intelligent service, smart mobility, and commercial automation.
Massimo cautioned the deal is a preliminary framework with no assurance of revenue.
The agreement also follows a February non-binding letter of intent to acquire FST Development Company Limited, a firm specializing in AI-driven solutions.
Trading Metrics, Technical Analysis
MAMO reported fourth-quarter revenue of $21.02 million and earnings per share of $0.05 in early April.
With a market capitalization of $41.08 million, the Texas-based vehicle manufacturer transitioning into a technology-focused company has a 52-week high of $5.59 and a 52-week low of $0.85.
The Relative Strength Index (RSI) of MAMO stands at 44.16.
Over the past 12 months, the small-cap company has dropped 62.63%.
MAMO is positioned near the lower end of its 52-week range.
MAMO's move fits a broader market trend, with stocks like Myseum Inc. (NASDAQ:MYSE) and Allbirds Inc. (NASDAQ:BIRD) also seeing sharp after-hours gains on AI-related announcements.
Price Action: According to Benzinga Pro data, the stock closed the regular session at $0.99, down 3.27%.
Benzinga's Edge Stock Rankings indicate show that MAMO is exhibiting a negative price trend across all time frames.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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