Fisker is planning to introduce the Ocean SUV in 2022.
Courtesy FiskerSpartan Energy Acquisition is in talks to buy electric-vehicle company Fisker Inc, Reuters reported on Thursday. Spartan shares soared more than 38% on the news.
Stock in electric-vehicle makers are on fire. Special purpose acquisition companies, or SPACs, are doing even better.
SPACs are entities to hunt for privately held companies. This year is rapidly becoming the year of the EV-SPAC. Battery- and fuel-cell powered heavy-duty trucking pioneer Nikola (ticker: NKLA) became a publicly traded entity after being purchase by a SPAC called Vectoiq.
Tortoise Acquisition (SHLL) announced plans recently to buy another electrically powered heavy-duty trucking company, Hyliion. That deal is expected to close later in 2020.
Tortoise shares are up 169% year to date. Nikola stock—which was the former Vectoiq before it adopted the Nikola name—is up 450% year to date.
The returns are eye popping and are helped by the success of EV behemoth Tesla (TSLA). Its shares are up 233% year to date. Gains have made the EV pioneer the most valuable car company in the world, measured by market capitalization. Tesla’s market cap is about $260 billion. Toyota Motor (TM) has a market capitalization of roughly $204 billion.
Reuters said the Fisker deal is worth up to $2 billion. It is quite a reversal of fortune for founder Henrik Fisker. His first Fisker Automotive company was building the Karma sports car before declaring bankruptcy in 2013. This Fisker is planning to introduce the Ocean SUV in 2022.
The terms of the Hyliion and Nikola deals weren’t disclosed. Nikola raised $700 million through a PIPE, short for private investment in public equity. Nikola’s market value is now more than $20 billion. Tortoise’s market cap is still less than $1 billion.
Spartan stock (SPAQ) is up 47% year to date, after Thursday’s 34% gain, far better than comparable returns of the Dow Jones Industrial Average and S&P 500 over the same span.
That’s the power of electric-vehicle association these days. And based on the performance of its peers, traders can expect more gains and more stock volatility in coming weeks.
Spartan shares were up 1.3% in after-hours trading Thursday.
Write to Al Root at allen.root@dowjones.com
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