What Does Recent Trading Activity Of SPAQ Stock Suggest?
If there’s one topic that’s been getting the headlines recently, the electric vehicle (EV) stocks top the list. The recent surge of interest in the alternative energy space has caused investors to put focus on this niche. Beginning of this month, delivery figures came out from two popular EV manufacturers. These are Nio Inc (NIO Stock Report) and Tesla (TSLA Stock Report). In case you haven’t noticed, NIO and TSLA stocks have both climbed 130% and 36% respectively in just a few weeks.
While the strong deliveries from EV manufacturers are a positive sign for the industry, we’ve only just begun to see what the future entails for the EV space. Certain investors have been looking for the next Tesla. After all, many have missed the opportunity to invest in the EV manufacturer during the early stage. We saw the massive gains with electric truck start-up Nikola (NKLA Stock Report) last month. This week, electric-vehicle maker Fisker is in discussions to go public via the same route as Nikola through a special-purpose acquisition company, SPAC.
According to a report from Reuters, Spartan Energy Acquisition (SPAQ Stock Report) are bidding for Fisker. A deal in the range of $2 billion could be struck as early as next week. While nothing is final at this moment, to say SPAQ stock will have a breakout will be speculative at its best.
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SPAQ Stock Soars On Merger Deal
Spartan Energy stock soared 37% on Thursday after the company was in the lead of a bidding war for electric vehicle maker Fisker. The bidding war has likely intensified after the management teams of SPACs that are in search of an acquisition saw the trading activity of new EV manufacturers like Nikola, Workhorse (WKHS Stock Report), and Tortoise Acquisition Corp (SHLL Stock Report).
Meanwhile, Nikola Corp, which is developing an electric truck and doesn’t expect to generate revenue until 2021, briefly saw its market valuation surpass Ford (F Stock Report). With the explosive trading activities witnessed after the recent acquisitions, there’s a great chance corporations would like to try to replicate its success.
Is SPAQ Stock The Best EV Stock To Buy Right Now?
This is a question for every investor. Is SPAQ Stock the best stock to buy right now amid the strong momentum in the EV space? Fisker has developed an electric luxury SUV called the Ocean. The company hopes to put into production in 2022 at a starting price of about $37,500. The company had recently completed a $50 million Series C funding round funded by Moore Strategic Ventures. But that’s only enough to cover the engineering work on Ocean. Fisker will need more funds to put the vehicle into production. On a side note, Fisker is the second electric-company founded by former Aston Martin designer Henrik Fisker.
Considering that Fisker is still an early stage company, SPAQ stock can be quite volatile. That’s even if it successfully closes the deal. But what if it doesn’t? Usually investors are not encouraged to invest in companies based on rumours of a potential merger. But that could just be me. Maybe it could turn out to be a lucrative investment if the deal goes through. So is it one of the best EV stocks to buy right now? You be the judge.