If you are a fan of electric vehicle stocks and special purpose acquisition company mergers, TV analyst Jim Cramer may just be your favorite person. This is especially true if you have been watching CIIG Merger (NASDAQ:CIIC) as it plans to take Arrival public. Once again, Cramer has shares of CIIC stock absolutely rocketing. So what do you actually need to know about it before the Arrival SPAC merger?
To start, investors may need a quick refresher on the story here. Earlier in November, electric vehicle maker Arrival announced it was coming public via CIIG Merger. With the reverse merger set to close some time in 2021, CIIC stock has been climbing higher. Largely, that is because investors have decided the Arrival SPAC merger is worthy of hype.
Importantly, prior to coming public, Arrival has already racked up institutional support from the likes of BlackRock (NYSE:BLK) and automakers like Hyundai (OTCMKTS:HYMTF). It is already one of the largest startups in the United Kingdom, and it has a sizeable order backlog.
Plus, with a focus on electrifying transit vehicles, it has a different niche. This means it appeals to fleet customers like the United Parcel Service (NYSE:UPS), which has preordered 10,000 electric vans.
But beyond the broad EV hype, Jim Cramer can take credit for the surge in CIIC stock. What do I mean? Well, it all started a few days after the Arrival SPAC merger announcement. Presented with info on a few blank-check companies like CIIG Merger and Hennessey Capital (NASDAQ:HCAC), which is prepping to take Canoo public, Cramer recommended investors should “Just buy it!” Just buy it, they did.
Now, his bullish remarks on CIIC stock are working wonders once again…
Jim Cramer Boosts the Appeal of CIIC Stock
A big investor complaint about SPAC mergers is that sometimes, there just is not a whole lot of information to digest outside of required U.S. Securities and Exchange Commission filings. Granted, this is not always the case. However, what this does mean is that expert commentary can go a long way in validating the hype and reassuring investors. It looks like Cramer did just that yesterday.
Speaking via CNBC, Cramer had a lot of praise for Arrival. He commented on its production plans, which include using microfactories to lower production costs and overall ownership costs. Plus, he thinks that Arrival vehicles will compete well against diesel and gasoline competitors, helping the startup earn its $5-billion-plus valuation. And although Cramer recommended buying CIIC stock below $17.50, many investors are diving in right away. Shares are up nearly 23% in pre-market trading.
Importantly, there is one more huge component to this story. Cramer said yesterday that he thinks Arrival is set to be the “son” or “daughter” of Tesla (NASDAQ:TSLA). Essentially, this speaks to the heart of what investors are trying to do. Find the next Tesla, invest in it early and ride it up to massive gains. Cramer thinks CIIC stock could be on that trajectory, and his blessing may be better than a crystal ball.
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.
