Tuscan Holdings (NASDAQ:THCB) is charging up for another rally on Wednesday, as investors flock to the special purpose acquisition company. However, the move in THCB stock comes without any company news. So then, what do investors need to know ahead of the Microvast SPAC merger?
Toward the end of November, Tuscan Holdings started to really captivate investor attention. That is because the SPAC, which was initially focused on the cannabis space, decided to make a big pivot into the world of electric vehicles. Now, it looks like that Tuscan Holdings is going to bring Microvast public.
What exactly is Microvast? Well, the company specializes in battery systems to power a wide range of electric vehicles. Instead of focusing on the passenger vehicle space, Microvast is carving out a niche in city transit. This means it wants to develop high-power batteries for things like buses and taxis. Additionally, Microvast already has some experience. Electric buses featuring Microvast battery systems made their debut during the 2018 Olympic Games in South Korea.
With investors eyeing Microvast and THCB stock against many other EV stocks, this reputation and experience should help it stand out.
But why is THCB stock rallying nearly 20% on Wednesday? The first part of this answer could simply be that investors are excited about the Microvast SPAC merger. There is a never-ending crowd of blank-check companies. Investor attention around these names ebbs and flows along with merger announcements and other updates. Today, it seems that THCB is one in the spotlight.
However, there is one other big reason Tuscan Holdings looks appealing today…
THCB Stock and the QuantumScape Catalyst
Remember, Microvast is working to develop battery systems for electric vehicles. As part of this, the company says it wants to develop fast-charging and ultra-powerful batteries. It also wants to make sure its battery systems power accessible, lower-cost cars.
Then enter QuantumScape (NYSE:QS). QuantumScape is another battery startup that similarly came public via the SPAC Kensington Capital. Investors have flocked to QS stock because the company promises to launch solid-state battery technology capable of disrupting the EV market. Importantly, QuantumScape wants batteries to charge quickly, work at high power and ultimately lower vehicle costs. Essentially, it shares a lot of overlap with Microvast in its driving goals.
Yesterday, QuantumScape shook up the market, sharing data from its solid-state battery tech. The big announcement is that now, QuantumScape batteries can reach an 80% charge in just 15 minutes. That is a huge improvement on current lithium-ion batteries. Additionally, it also speaks to safety advancements and higher power capacity than previous batteries.
How is this helping THCB stock? Today, investors seem to be celebrating the potential for electric vehicle batteries. With QuantumScape offering solid-state disruptions, there is more potential behind EV batteries. More consumers could opt for electric vehicles, and EV prices could come down. RMG Acquisition (NYSE:RMG), the SPAC behind Romeo Power, was similarly climbing earlier on Wednesday.
Keep a close eye on THCB stock. While investors wait for more news on the Microvast SPAC merger, this is a story worth watching.
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.