Are you feeling a spark of electricity? It looks like Newborn Acquisition (NASDAQ:NBAC) stock is ahead of the Nuvve SPAC merger. But what is causing the rally in NBAC stock? And what else do investors need to know?
Importantly, investors should start by making sure they know the story with Newborn Acquisition and Nuvve. Essentially, Newborn Acquisition and NBAC stock have been around since February 2020. More recently, the blank-check company has been trending higher thanks to news it will take Nuvve public. Why? It turns out that Nuvve offers investors yet another entry to the red-hot electric vehicle charging market.
However, there is one thing that makes Nuvve stand out. Unlike rivals ChargePoint (NYSE:SBE) and Blink Charging (NASDAQ:BLNK), Nuvve specializes in vehicle-to-grid (V2G) solutions. This basically means that when the cars are plugged in and not in use, they can contribute back to the grid. And with more and more adopters of EVs, such V2G solutions could be helpful in creating a more sustainable lifestyle for all involved.
This is also where the rally today in NBAC stock comes from. Investors learned recently that Nuvve is joining forces with IoTecha, another provider of EV charging technology. Together, they will develop and commercialize a bidirectional charging solution for electric vehicles. Just like that, the Nuvve SPAC merger looks so much more interesting and NBAC stock shot up. As of this writing, shares are higher by more than 4% in intraday trading.
But what exactly will this partnership bring Nuvve? And what is bidirectional charging?
NBAC Stock and the IoTecha Partnership
The answer to the second question is very important for investors. As its name implies, bidirectional charging is a model where EV charging works both ways. Not only can the electric grid power electric vehicles, but electric vehicles can power the grid… and more. Unlike traditional chargers, bidirectional solutions have internal converters that can handle the transition from AC to DC. These solutions can even control, for instance, the amount of power that goes into an EV battery.
And in line with the mission of Nuvve and NBAC stock, bidirectional charging encompasses vehicle-to-grid solutions. However, it has a few other potential uses. According to experts, one of the big opportunities with bidirectional charging is vehicle-to-home charging. Through these solutions, electric vehicles or EV fleets can actually contribute power to homes or other buildings. And during an outage or another such event, this can be particularly beneficial.
So now, what does this mean for Nuvve? According to Nuvve and IoTecha, this tech will first roll out in fleets of electric school buses. These buses should be able to help the broader sustainable picture in a variety of ways, including through energy market participation and resiliency services.
Lastly, IoTecha and Nuvve say that they will also be able to manage these bidirectional charging solutions and improve upon them through over-the-air software updates. As investors flow into NBAC stock, make sure to keep this EV play on your radar.
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.