Special Purpose Acquisition Companies are the magic that investors chased for over a year. The Workhorse (NASDAQ:WKHS) and Nikola (NASDAQ:NKLA) rise and fall promised riches at the time. Now that the liquidity offered from SPAC issuances is drying up, most SPACs are uninvestable.
Churchill’s (NYSE:CCIV) cash raise for Lucid Motors will give Lucid the capital it needs. Yet it comes at a steep cost of distrust. CCIV stock traded at around $60 before the price collapsed. The unfavorable terms are a reminder that SPACs benefit the insiders and the acquired firm, not the investor.
Avoid CCIV.
QuantumScrape (NYSE:QS) offers incredible battery technology advancements. Fast-charging from new materials and approaches would revolutionize the battery market for electric vehicles. Conversely, Nio's (NYSE:NIO)’s battery swap solution undermines the need for QS solutions. Volkswagen and QS will still bring a BEV solution in a few years. Until then, QS stock is not a buy at this time.
Fisker’s (NYSE:FSR) deal with Magna and Foxconn as suppliers is a positive development. FSR stock is not a buy and hold. It does offer the occasional short-term trade. As Fisker gets closer to the launch of an affordable EV in a few years, the stock will reach a better buying price.
Add FSR stock to the watch list. After its steady plunge from $31.96 to around $10 last week, the selling momentum is not over.
