Tuya Inc., a global leader in AI cloud platform services, saw its stock price surge by 5.06% in pre-market trading on Tuesday. This significant uptick comes on the heels of a major announcement regarding the company's Environmental, Social, and Governance (ESG) rating.

MSCI, a leading provider of critical decision support tools and services for the global investment community, has upgraded Tuya's ESG rating from 'A' to 'AA'. This upgrade places Tuya among the ESG leaders in the Software & Services industry, reflecting the company's strong commitment to sustainable and responsible business practices.

The improved rating highlights Tuya's exceptional performance in several key areas, including data privacy, security, governance enhancements, and energy efficiency through smart technology solutions. Tuya's Founder and CEO, Xueji (Jerry) Wang, emphasized the company's dedication to innovation-led sustainability and its goal to deliver long-term value for stakeholders while supporting global efforts for a greener future. This recognition by MSCI is likely to attract more ESG-focused investors, potentially explaining the stock's significant pre-market rally.