As EV stock hype bullishly continues I can only be reminded of Henry Ford & generations before chasing similar investments, as the Ford motors once began like Tesla but back in 1903. Lots can be learned by the past of the auto industry including how over 90% of the car companies didn’t survive the long term, but not to scare we are here to explore the future of EV Stocks with the highest ratings pioneering what comes next!
This SPAC stock Switchback Energy Acquisition Corp NYSE: SBE will be acquiring Charge Point, A company that will likely be responsible for helping end the use of gas station replacing fossil fuels with electricity. Tesla is not the only charging game in town as charge point has 115,000 charging station currently active around the entire world generating profitable earnings.
Charge Point Energy What You Need To Know
Charge point’s current revenue is coming from 2 basic platforms upfront payments to charge making up 51% & Recurring payments. Current revenue for 2019 sits at $147m with a loss of $133m unfortunately do to the pandemic for 2020 they are only expected to do $135m with growth expected to pick up & continue into 2021 at $198m.
- 2.5 million chargers by 2025
- Market leader in charging expanding into Europe
- Over 82 million charging sessions logged since inception
- Offer upfront payment, subscription & services income model
- Will be gradually adopted into parking lots amongst hundreds of current partners including
One of the biggest risks associated with charge point is the relative use of at home charging which they do approach there own in home charging products but we believe require better marketing to compete with Tesla’s and others. None the less we believe as the EV market grows they will continue to be a market leader in charging getting adopted to in business parking lots everywhere
Switchback Energy Acquisition Corp. NYSE: SBE
Public listing milestone broadens market leadership and builds on over a decade of
innovation with more than 4,000 businesses and organizations participating in
Charge Point’s new fueling network
• Approximately $493 million in net proceeds will advance ChargePoint, Inc.’s commercial,
fleet and residential businesses
• Transaction includes $225 million upsized PIPE at $10.00 per share anchored by institutional
investors, including Baillie Gifford and funds managed by Neuberger Berman Alternatives
• ChargePoint President and CEO Pasquale Romano and existing leadership team to lead
The business combination values ChargePoint at an implied $2.4 billion enterprise value. Upon
transaction closing, and assuming no redemptions by Switchback stockholders, ChargePoint will
have approximately $683 million in cash, resulting in a total pro forma equity value of
approximately $3.0 billion. Cash proceeds raised in the transaction will be used to repay debt,
The proceeds will be funded through a combination of Switchback’s approximately $317 million cash in trust,
assuming no redemptions by Switchback stockholders, and a $225 million PIPE of common
stock valued at $10.00 per share led by institutional investors including Baillie Gifford and funds
managed by Neuberger Berman Alternatives Advisors.
Upon the transaction closing, the combined company will be named ChargePoint Holdings, Inc.
and will be listed on the New York Stock Exchange (the “NYSE”).
“For thirteen years we have been singularly focused on our vision to move all people and goods
on electricity, and that has never been more relevant than it is today,” said Pasquale Romano,
President and CEO, ChargePoint. “We’ve pioneered networked charging and are resolute in our
aim to usher in the transition to mass EV adoption by electrifying one parking spot at a time.
Today, we are a charging market leader thanks to a winning business model, a complete
portfolio and thousands of brands that have realized that EV charging is essential, good for
business and aligned with their corporate and sustainability goals. Our technology charges all
EVs – from passenger vehicles to delivery fleets – so there is no need to choose winners in
electric mobility. We see ourselves as an index for the entire category.”
Charge Point SPAC Stock Conclusion
SBE stock is trading up over 300% since the the announcement of the merger, so the real question is it still a buy before the merger? Well from a long term investors standpoint we would wait till after the merger at the current $40 share price pre merger it will likely cool off as dilution will follow the merger. EV stocks have been driving a lot of attention so they need to be approached with some caution to avoid mid term pump and dumps, by no means saying charge point is.