Aeva SPAC Merger: LiDAR Company to Go Public Via IPV SPAC

Thanks to a new announcement, the future of self-driving cars is closer than ever before. On Monday, LiDAR company Aeva shared it was coming public through InterPrivate Acquisition (NYSE:IPV). What do investors need to know about the Aeva SPAC merger? And why does this news look particularly exciting ahead of Election Day?

A finger hovering over an "autonomous drive" button.
Source: Olivier Le Moal / Shutterstock.com

To understand the Aeva SPAC merger, we should first take a look at the underlying company. At its core, Aeva makes LiDAR sensors for use in self-driving cars. As the autonomous vehicle industry continues to pick up steam, companies will increasingly rely on LiDAR sensors. Essentially, these sensors help the cars navigate their surroundings and make informed driving decisions. Importantly, many in the space believe these sensors are critical to ensure safety.

Investors should note then that Aeva is choosing to come public at a good time. Although the novel coronavirus initially weighed on the industry, we are starting to see a rebound in autonomous vehicle interest. With that in mind, Aeva is also not the first LiDAR firm to come public through a special purpose acquisition company. In the last few months the stock market has welcomed rivals Velodyne (NASDAQ:VLDR) and Luminar (NASDAQ:GMHI).

It is also important to consider the value of the deal — and Aeva is no small company. Once the Aeva SPAC merger closes, the company will clock in at $2.1 billion. The deal will also give Aeva $300 million to help it expand from the world of self-driving cars to consumer electronics. Recognizing the autonomous future, Aeva wants to provide sensors for things like smartphones and tablets.

The Aeva SPAC Merger and Election Day

There is definitely a lot for investors to like about the Aeva SPAC merger and IPV stock. Unlike other businesses that have come public through blank-check companies, Aeva has a plan in place. In fact, it is already working on supply deals with a Volkswagen (OTCMKTS:VWAGY) unit. Combine this early success with plans for unique expansion, and Aeva looks competitive when stacked up against its rivals.

But there is another catalyst at play here. Wall Street thinks that a victory by former Vice President Joe Biden will boost companies like Aeva.

Why? The Democratic candidate wants to reshape the automotive industry in the United States. Besides his plans to roll out electric vehicle charging stations, he also has outlined an initiative to create 1 million new jobs. As part of this, analysts think he will create an opportunity for companies to lean into new tech like self-driving vehicles. If this happens, Aeva and its rivals should see increased demand for sensors.

Although nothing is a sure thing about Election Day, Biden remains ahead in the polls. If that lead carries through to a victory, keep a close eye on the Aeva SPAC merger and IPV stock.

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. 


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/aeva-spac-merger-lidar-company-to-go-public-via-ipv-spac/.

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