In this article, we discuss the 10 best EV SPACs to buy now. If you want to skip our detailed analysis of these SPACs, go directly to the 5 Best EV SPACs to Buy Now.
Two months ago, legendary investor Michael Burry, the chief of California-based hedge fund Scion Asset Management, revealed a $530 million short position on Tesla, Inc. (NASDAQ: TSLA), the most valuable electric car (EV) company in the world. Burry cited increased competition in the EV space as one of the main reasons behind his call. As the stock falls, developments in the market over the past year seem to back Burry.
However, in the past twelve months or so, a flurry of US-based companies working in the electric vehicle sector have gone public through mergers facilitated by special purpose acquisition companies (SPACs). These include Fisker Inc. (NYSE: FSR), Nikola Corporation (NASDAQ: NKLA), and ChargePoint Holdings, Inc. (NYSE: CHPT), among others. In addition to other famous EV stocks like NIO Inc. (NYSE: NIO) and XPeng Inc. (NYSE: XPEV), these firms have done roaring business on the market in the past few months.
This increased activity in the electric vehicle industry has also resulted in investors flocking to EV startups in a bid to identify the next Tesla, Inc. (NASDAQ: TSLA). Some of these startups and the SPAC deals they are pursuing are discussed in detail below. Amid the boom, companies that market electric vehicle charging infrastructure and other hardware or software related to EVs have been attracting investor interest, highlighting the shift away from EV makers. Traditional automakers are also stepping up investments in the EV space.
As electric vehicles rise, evidenced by record delivery numbers posted by Tesla, Inc. (NASDAQ: TSLA) and NIO Inc. (NYSE: NIO) recently, after a disappointing year — global consultancy McKinsey estimates that EV sales fell by 25% year-on-year in 2020 — EV investors have much to be excited about as more EV-related companies go public in the coming months. Government policies designed to encourage adoption of EVs are also likely to boost EV stocks. This tech-enabled disruption further threatens traditional automakers.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best EV SPACs to buy now. These companies were ranked keeping in mind the funds they raised at their initial public offering, the mergers they are presently involved in, and the market valuation of the startups they are pursuing.
Best EV SPACs to Buy Now
10. Colonnade Acquisition Corp. II (NYSE: CLAA)
Colonnade Acquisition Corp. II (NYSE: CLAA) is a special purpose acquisition company that is run from Florida. It is placed tenth on our list of 10 best EV SPACs to buy now. The firm went public in March 2021, managing to raise close to $330 million from the initial offering. It focuses on mergers with companies working in the auto-tech business. The CEO of the firm is Remy White Trafelet.
Colonnade Acquisition Corp. II (NYSE: CLAA) has a market capitalization of over $404 million. The 52-week price range of the stock is between $9.6 and $9.9. The firm is still searching for a merger deal. It had previously held talks for a possible merger with Ouster, a San Francisco-based firm that makes and sells lidar sensors.
Just like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), XPeng Inc. (NYSE: XPEV), Fisker Inc. (NYSE: FSR), Nikola Corporation (NASDAQ: NKLA), and ChargePoint Holdings, Inc. (NYSE: CHPT), Colonnade Acquisition Corp. II (NYSE: CLAA) is one of the stocks to watch out for in the EV space.
9. CF Finance Acquisition Corp. III (NASDAQ: CFAC)
CF Finance Acquisition Corp. III (NASDAQ: CFAC) is a special purpose acquisition company based in New York. It is ranked ninth on our list of 10 best EV SPACs to buy now. The company went public in November 2020, raising over $230 million from the initial offering. The firm mainly concentrates on mergers with companies working in the financial services, healthcare, real estate services, technology and software sectors.
CF Finance Acquisition Corp. III (NASDAQ: CFAC) has a market capitalization of over $293 million. The CEO of the firm is Howard Lutnick. The 52-week price range of the company’s shares is between $9.8 and $14.4. The firm has signed a definitive agreement for a merger with AEye, a firm that markets hardware, software, and other products for autonomous vehicles. AEye is valued at close to $2 billion.
CF Finance Acquisition Corp. III (NASDAQ: CFAC) is a solid buying option in the EV space that already boasts market frontrunners like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), XPeng Inc. (NYSE: XPEV), Fisker Inc. (NYSE: FSR), Nikola Corporation (NASDAQ: NKLA), and ChargePoint Holdings, Inc. (NYSE: CHPT).
8. Gores Guggenheim, Inc. (NASDAQ: GGPI)
Gores Guggenheim, Inc. (NASDAQ: GGPI) is a special purpose acquisition company headquartered in Colorado. It is ranked eighth on our list of 10 best EV SPACs to buy now. The company concentrates on initial public offerings related to the industrials, technology, telecommunications, and media sectors. It went public in March 2021 and raised more than $800 million from the offering. The CEO of the company is Mark Stone.
Gores Guggenheim, Inc. (NASDAQ: GGPI) is in talks for a merger with Polestar, a Swedish electric car maker valued at over $7 billion. The stock has a 52-week price range between $9.7 and $10.6. The average volume of the stock is 551,017. Deutsche Bank is the left lead on the special purpose firm. The company has a market capitalization of $1 billion.
Even though prominent names like Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), XPeng Inc. (NYSE: XPEV), Fisker Inc. (NYSE: FSR), Nikola Corporation (NASDAQ: NKLA), and ChargePoint Holdings, Inc. (NYSE: CHPT) dominate headlines in the EV market, Gores Guggenheim, Inc. (NASDAQ: GGPI) could also be making the front pages in the coming weeks.
7. Ivanhoe Capital Acquisition Corp. (NYSE: IVAN)
Ivanhoe Capital Acquisition Corp. (NYSE: IVAN) is a special purpose acquisition company run from New York. It is ranked seventh on our list of 10 best EV SPACs to buy now. The firm targets mergers with other companies that are working on products designed to reduce reliance on fossil fuels. It went public in January 2021 and raised more than $276 million from the offering. The CEO of the firm is Robert Friedland.
Ivanhoe Capital Acquisition Corp. (NYSE: IVAN) has signed a definitive agreement for a merger with SES Holdings, a battery supplier for electric vehicles that is valued at over $3.5 billion. The 52-week price range of the stock lies between $9.5 and $11.1. It has an average volume of 195,431 and a market capitalization of $343 million. Morgan Stanley is the left lead on the firm.
Investors should watch out for Ivanhoe Capital Acquisition Corp. (NYSE: IVAN) as it makes waves in the EV space over the next few months, alongside Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), XPeng Inc. (NYSE: XPEV), Fisker Inc. (NYSE: FSR), Nikola Corporation (NASDAQ: NKLA), and ChargePoint Holdings, Inc. (NYSE: CHPT)
6. InterPrivate II Acquisition Corp. (NYSE: IPVA)
InterPrivate II Acquisition Corp. (NYSE: IPVA) is a special purpose acquisition company based in New York. It is placed sixth on our list of 10 best EV SPACs to buy now. The company went public in March 2021 and raised more than $258 million from the initial public offering. It targets mergers with firms working in the auto-tech, mobility, and business services sectors. It presently has a market capitalization of close to $313 million. The CEO of the company is Ahmed Mohamed Fattouh.
InterPrivate II Acquisition Corp. (NYSE: IPVA) is still looking for a merger partner. The 52-week price range of the stock is between $9.6 and $10.7. It has an average volume of 7,134. The company is closely following electric vehicle startups and as it looks for a merger in the coming weeks and months.
Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), XPeng Inc. (NYSE: XPEV), Fisker Inc. (NYSE: FSR), Nikola Corporation (NASDAQ: NKLA), and ChargePoint Holdings, Inc. (NYSE: CHPT) are all solid stock options for those looking to invest in the EV market, just like InterPrivate II Acquisition Corp. (NYSE: IPVA).
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Disclose. None. 10 Best EV SPACs to Buy Now is originally published on Insider Monkey.
