If you’re going to start a position in electric vehicles (EVs) now, you’d might as well try something that’s different from the rest. There’s nothing dull about Hennessy Capital (NASDAQ:HCAC), though it takes a little bit of digging to see HCAC stock’s value since Hennessy is just a shell company.
Yet, that shell company is bringing a very exciting and unique electric vehicle company to the markets. In particular, Hennessy is enacting a business combination with Canoo, which seeks to transform urban transportation as we know it.
Canoo is an unusual name, but then, these are unusual vehicles. If you’re going to invest in HCAC stock, then you’ll need to learn what a modular skateboard is. (Clue: it has nothing to do with Tony Hawk.)
As we’ll discover, Canoo isn’t just different; it’s disruptive, but in a good way. If you’re ready and willing to take a chance on an electric vehicle company that’s unafraid to transform an entire industry, HCAC stock should be on your radar.
HCAC Stock at a Glance
If Canoo is an exciting company, then the price action of HCAC stock is equally exciting. This is a stock that went from a real sleeper to a moon shot very quickly.
Interestingly, HCAC stock taxied down the runway for many months before the big takeoff occurred. Month after month, HCAC was magnetized to the $10 area. There were quick price pops along the way, but those didn’t last too long.
Then came the explosion in November and December. With hardly any warning, HCAC more than doubled in price, topping out at $22.43. As of Dec. 11, HCAC shares were still trading in the $20 area.
Clearly, the bulls are firmly in control of HCAC stock. The electric vehicle market is red-hot right now, so I certainly would not recommend trying to short-sell HCAC. This one’s a fast mover, and you’ll definitely want to be on the right side of the trade.
Get Ready for the Vote
Even though the November elections are over (I think), there’s a vote that’s coming on Dec. 21 which could have a profound impact on the HCAC stock price.
That’s the day when Hennessy Capital has planned a special shareholder meeting. Shareholders will vote on Hennessy’s pending acquisition of Canoo at that meeting. With that, hopefully the Canoo special purpose acquisition company (SPAC) merger will be finalized.
Importantly, investors should prepare for Canoo to trade under a new ticker symbol, GOEV, on the Nasdaq Exchange. This was a long time coming, as Hennessy Capital first went public in February of 2019 and the business combination with Canoo was announced back in August of this year.
Now that you know what’s coming, you can position yourself accordingly and celebrate the completion of a potentially game-changing merger.
A Profoundly Different Vehicle
How different will Canoo’s debut lifestyle, sport and delivery vehicles be? Put it this way: CEO Ulrich Kranz envisioned the Canoo as a spaceship, and that’s a fairly accurate description of how the company’s vehicle prototypes look.
Yet, there’s more to Canoo’s electric vehicle lineup than just looks. They’re also powerful and practical. Check out the basic stats:
- Lifestyle Vehicle: 250+ mile range, charge time of 20% to up to 80% in 28 minutes, top speed of 125 mph
- Sport Vehicle: 300+ mile range, 4 or 5 passenger seat capacity, comparatively small footprint
- Delivery Vehicle: 200+ mile range, total cargo volume ranging from 6.2 to 11 cubic meters, approximate vehicle weight of 2,600 kilograms
All of these vehicles will be based on Canoo’s proprietary skateboard platform. This design features a “unique, self-contained, independently drivable rolling chassis” as well as “the market’s first true steer-by-wire platform, which, along with a composite leaf spring suspension, enables the skateboard’s flat structure and maximizes vehicle interior space.”
It’s fine if you didn’t understand every word of that description. The essential thing to know is that Canoo’s vehicles will offer drivers a smooth ride in a surprisingly roomy and robust next-generation electric vehicle.
The Takeaway
With a vote on the Hennessy-Canoo reverse merger coming up soon, HCAC stock is worth considering today.
Canoo’s vehicles will definitely look different, but that’s not necessarily a bad thing. Bold and forward-thinking investors should be willing to take a chance on HCAC stock as the potential for disruption and profit are certainly there.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system —with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
