SPAQ stock will be the next big SPAC “Special Purpose Acquisition Company” merger to IPO in the electric vehicle space, merging with Fisker automotive coming September 2020. I have been a big fan of the electric vehicle space and this one could be exciting to just watch considering the hype surrounding the last electric vehicle SPAC merger NKLA stock, you might want to pay attention to this.
Fisker Automotive Releasing The Ocean An All Electric SUV And Heres What You Need To Know
Fortunately Fisker is releasing there premier electric vehicle in the SUV space, largely untapped by companies like Tesla and Nikola, this could be promising also offering a unique leasing structure that’s never been done before in the auto industry.
Fisker Ocean is an electric SUV estimated to be starting under $40,000 USD being close to its competition in pricing. The Ocean is expected to have 250-300 miles or rang per charge with no release on charge times yet. This SUV is also promoted as vegan friendly clearly a promoting tool for grabbing a unique audience.
When it comes to Fiskers business model the biggest move is doing return anytime leasing with no minimum lease agreements. Also fully refundable reservations for the vehicle are starting at $250 USD, but other avenues are being made available with a mobile app, where you can do a monthly lease for $379/month after a $3000 down payment.
Though all of this sounds exciting it will come down to Fiskers ability to execute on mass production, which they claim will be similar to Nikola’s business model of partnering with manufacturers that already exist instead of self production. Though this comes with risk the CEO seems very confident and this is what her had to say.
Learn more about the Fisker company here but for now lets take a deeper look at this merger and why its got investors excited.
Taking A Look At The Merger Terms
Key Terms of the Fisker Acquisition With Spartan Energy SPAQ Definitive Agreement:
- Enterprise value of $2.9B
- $1bn in funding, more specifically $500m from Fisker IPO using PIPE investment at $10/share (Private investment in public equity)
- Merger to take place sometime between September, October 2020
- Fund from SPAC will go directly to fund operations beginning 2022
This merger will be the revitalization of an old internal combustion car company that once declared bankruptcy in 2013, This may the turn around story and something to pay attention to but is it worth buying?
Is SPAQ Stock A Buy Before The Merger?
SPAC stocks have recently exploded especially those in the electric vehicle space, now I believe in understanding a company before purchasing the stock but many investors want to be apart of the electric vehicle wave no matter the valuation. So you need to ask yourself are you in this as an investment or are you just interested in trading them?
As an investment you want to make sure you truly believe in the company long term and understand your risk tolerance level but if your just into the merger hype there is a good chance it will be as exciting as Nikola, though there is no guarantees in the stock market!
SPAQ stock “Spartan Energy” the special purpose acquisition company performing the merger has picked the best time to acquire Fisker as right now the most eyeballs will be on this deal. So keep your eyes on this and add to your watch list with a reminder of the merger happening around September time!