Are Electric Vehicle Charging Stocks Overhyped?
The euphoria surrounding electric vehicles (EVs) has boiled over from vehicle manufacturers to EV charging stocks as well. Blink Charging (NASDAQ: BLNK) stock surged around 2,000% last year. Similarly, shares of Switchback Energy Acquisition Corporation, an energy sector-focused special purpose acquisition company (SPAC), surged 220% in 2020 after it announced a merger with ChargePoint (NYSE: CHPT) in September. The merger was completed in February.
Another SPAC that's merging with an EV charging company is Climate Change Crisis Real Impact I Acquisition Corporation (NYSE: CLII). The stock jumped 65% on the day it announced merger with EVgo, expected to close in this quarter. Similarly, shares of TPG Pace Beneficial Finance (NYSE: TPGY) more than doubled on the day the SPAC announced its merger with EVBox, expected to close in June. Likewise, shares of SPAC Tortoise Acquisition II (NYSE: SNPR) rocketed more than 30% after it announced a merger with Volta. The merger is expected to complete in this quarter.
So there's a lot of hype surrounding EV charging stocks, many of which are using the SPAC route to go public. But is the enthusiasm justified, or are these stocks overhyped? Let's find out.
Source Fool.com
