Last week, investors learned that electric vehicle maker Arrival would soon be coming public via CIIG Merger Corporation (NASDAQ:CIIC). News of the Arrival SPAC merger was cause for cheer, especially as all things electric continue to be hot. Now, CIIC stock is once again soaring higher. So what is behind the latest move?
As we wrote last week, there is a lot to like about the upcoming Arrival SPAC merger. Importantly, Arrival really stands out against other new EV companies in the public markets. It is already one of the most valuable startups in the United Kingdom, and it has received institutional backing from major automakers like Hyundai (OTCMKTS:HYTMF).
Perhaps even more importantly, it already gets legitimacy from preorders. At the time of the merger announcement, Arrival said it had an order backlog worth $1.2 billion. As the company plans to launch a line of electric vans and electric buses, it is attracting attention. Even the United Parcel Service (NYSE:UPS) has plans to purchase 10,000 vans.
Although all that news is very exciting, what is causing CIIC stock to surge on Monday? Well, it looks like TV analyst Jim Cramer is bullish on the newest SPAC stock.
On Monday, Cramer spent some time analyzing recent special purpose acquisition company news. Importantly, Arrival is not the only upcoming debut. Companies like ChargePoint and Canoo are also prepping to come public via Switchback Energy Acquisition (NYSE:SBE) and Hennessey Capital (NASDAQ:HCAC). However, Cramer was particularly bullish on CIIC stock.
As he was presented with the facts, such as its $5.4 billion post-merger value and its unique microfactories, Cramer had an exclamation. “Just buy it!” Well, it looks like investors are doing just that on Monday afternoon. CIIC stock is up more than 30%.
Jim Cramer Gives CIIC Stock a Boost
What does this mean for CIIC stock ahead of the Arrival SPAC merger? As we wrote above, one of the biggest differences here is that Arrival truly does have legitimacy. That is what Cramer recognized on Monday, and it is something that should give shares a boost before the merger.
But beyond the endorsement from Cramer, the Arrival SPAC merger is likely to stay hot. That is because, in addition to its substantial preorder figures, it also occupies a different space in the EV market.
Although many EV names have been red hot, Arrival offers investors exposure to something new. Unlike Tesla (NASDAQ:TSLA) and Fisker (NYSE:FSR), which focus on passenger vehicles, Arrival is looking at vans and buses for larger-scale transit. Additionally, investors will likely appreciate the pending contract with UPS. Just as we have seen with Workhorse (NASDAQ:WKHS), the potential to electrify a corporate fleet presents a major upside catalyst.
As Cramer gets investors hyped to dive in, make sure CIIC stock is on your radar. The deal could close as soon as the first quarter of 2021.
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 with InvestorPlace.com.
