Are you ready to drive? Turns out Lordstown Motors (NASDAQ:RIDE) is — the red-hot electric vehicle company officially came public yesterday and is now trading on the Nasdaq Exchange. After months of generating pre-debut buzz, Lordstown Motors stock promises to be exciting. But what do investors need to know now?
Investors should start with a refresher. What exactly is Lordstown Motors? Well, the company is yet another entrant into the electric vehicle market. Unlike some of its competitors focused squarely on consumer cars, Lordstown hopes to electrify the world of commercial fleets. This unique niche is another reason why RIDE stock is already hot.
Here are some of the top facts for potential Lordstown Motors investors to know now:
- Previously, Lordstown Motors was trading through a special acquisition purpose company called DiamondPeak Holdings (NASDAQ:DPHC). Late last week, DPHC shareholders voted to approve a reverse merger between the SPAC and Lordstown Motors.
- Interestingly, this is one of the fastest turnarounds in the SPAC world. Shareholders just learned of the reverse merger in early August — potentially indicating just how hot EVs are right now.
- Lordstown Motors came public yesterday with a whole lot of potential. But what is behind that excitement?
- The primary offering from the company is its Endurance pickup truck. Although it looks like more futuristic offerings from Tesla (NASDAQ:TSLA) and Ford (NYSE:F), it has a different place in the market. Lordstown Motors hopes commercial fleets will take a green approach with its truck.
- Importantly, investors should note that the Endurance is not yet available. The company hopes to have models in production by the end of 2021.
- Also importantly, Lordstown Motors has some credibility. It actually receives support from traditional automaker General Motors (NYSE:GM).
Why Lordstown Motors Stock Is Hot Right Now
There are so many catalysts working in favor of Lordstown Motors. Beyond its unique product offering and the backing it receives from GM, RIDE stock will benefit from two other big trends. The first is the novel coronavirus. As we have previously reported, consumers care more than ever before about the environment. This is already translating to increased interest in electric vehicles — and importantly, in electric car stocks. Expect Lordstown Motors to keep climbing higher.
The other big catalyst comes from former Vice President Joe Biden. With Election Day just a week away, many investors are looking for eco-friendly equities to support. Why? Biden has promised to invest $2 trillion in clean energy projects. With more federal incentives to get green, we could see corporations and municipalities clamor to swap out their fleets for the Endurance.
No matter what happens, Lordstown Motors is a company to keep on your radar. It still has to deliver, but after popping 19% during its first day of trading, we know Wall Street will be watching closely. You should too. Any updates on its Endurance or future products will have RIDE stock rocketing higher once more.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.