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Not Another Electric Fleet SPAC

I'll have another round of your finest electric vehicle SPAC plays, please. Demand for medium-duty commercial electric fleets is growing at a rapid pace.

Lucifer Morningstar
Lightning EMotors Said In Talks to Go Public Via GigCapital3

Lightning EMotors, a company that focuses on fleet electrification and cutting out fuel consumption, is in advanced talks to go public through a merger with blank-check firm GigCapital3 Inc., ticker symbol GIK.

GigCapital3 is looking to raise $100 million in equity to support this deal that would create a valuation of $700 million to $1 billion, including debt. This is all fine and dandy, but the speculation is useless without a deal. Terms could change, but the play is to get in before a deal is announced. GIK rose as much as 23% on the news of upcoming deal talk, so as more people start to catch on, more hype generates around the stock price.

Well, what is it?

The Colorado-based company, formerly known as Lightning Hybrids, adds technology to commercial vehicles such as vans, trucks and buses that reduce their emissions to zero, and provides a charging service. Lightning Emotors said in October that it had more than doubled its manufacturing space, juiced up production, and doubled its workforce. This fits into the theme of the electric vehicle SPAC plays, albeit a massive bubble in the making, there's always room for one more. Keep track of the Pivotal Investment ($PIC) merger because once that goes through, investor confidence should follow in the form of buyers momentum for fleet electrification. News was expected last week, but didn't come. Keeping an eye out for this week, remember this is all just speculation. Don't friggen market buy this immediately.


The chart

GIK Daily
  • OVERBOUGHT. Many bought into the rumor, now it's time to see if there's weight behind this. I like this name as something to watch based off of the PIC deal, but that's it for now.
  • I'd wait for a dip, but again, it all depends on the news. The pattern with these things is people will buy on hype, then volume dies until there's more news. I like the risk/reward, downside looks to be 9.79, a few bucks!

Last words by Tim Reeser, CEO of Lightning Emotors

"There is significant momentum building in the commercial medium-duty EV industry, driven by social and regulatory trends and now being accelerated by the realization of very compelling total cost of ownership numbers for most fleets," Reeser said. "In fact, now that the total cost of ownership of electric medium-duty vehicles has undercut traditional gas and diesel vehicles, demand has now outstripped supply for us and the industry as a whole, and we're responding by investing in our business to innovate, expand and directly meet the growing needs of our current customers and the growing market."

I'm thrilled to see the recognition of the hype behind the EV industry by the CEO, I'm hopeful a deal can be completed while the market is still hot on these plays. With the market licking its chops at the sight of battery, solar, electric vehicle and fleets, the plays should run hot for now. If these guys want to make money, they'd be wise to pounce on this opportunity now.


**Not a financial advisor. Articles are opinion only.