Shanghai-based special purpose acquisition company (SPAC) Newborn Acquisition (NASDAQ:NBAC) was thrust into the investing public’s attention when an upcoming merger deal with San Diego-based electric charging company Nuvve was announced. All of a sudden, interest in NBAC stock surged.
The trading volume and price of NBAC stock spiked, as well. This is not unusual for post-deal SPAC stocks nowadays. The investing community can get very excited when a shell company reveals its acquisition target.
If you’re going to invest in NBAC stock, you don’t need to focus on Newborn Acquisition. Rather, you should learn as much as you can about Nuvve – the company and its business model.
In doing so, you’ll have the opportunity to discover a sub-niche within the electric vehicle space that’s really just in its infancy. So, let’s begin by delving into the fast-moving price action of NBAC stock.
A Closer Look at NBAC Stock
Lake many pre-deal SPAC stocks, NBAC stock stayed close to the $10 price level for a number of months. This tends to happen as investors are still awaiting more information about which company the SPAC might target for an acquisition.
Then, a price explosion might happen when the target company is finally revealed. NBAC stock serves as a textbook example of this as the share price jumped to a 52-week high of $22.74 in late November.
That event was followed by a whole lot of wiggling and wobbling in the NBAC stock price. It was a trader’s paradise, but perhaps an investor’s nightmare, as the NBAC share price oscillated wildly between $13 and $21 over the following weeks.
At the close of the market session on Jan. 15, NBAC stock settled at $17.90 for a 7.16% single-day loss. That might sound like a big price move, but it’s not uncommon for NBAC.
Suffice it to say, then, that NBAC stock isn’t for the faint of heart. Owning NBAC shares means that you might have to strap in for a long-lasting roller-coaster ride. But if you’re okay with the risks, then the rewards could be outstanding.
A Charging Company with a Difference
So, what got NBAC stock traders so excited about Nuvve? Undoubtedly, the intense interest in Nuvve is due to its connection to the red-hot electric vehicle market.
To be more specific, Nuvve is in the electric vehicle charging industry. Now, that might not immediately spark your interest. After all, there are already two strong competitors in that space.
I’m specifically referring to Blink Charging (NASDAQ:BLNK) and ChargePoint, which trades as Switchback Energy Acquisition (NYSE:SBE).
Yet, there’s a crucial difference here. Unlike Blink and ChargePoint, Nuvve offers vehicle-to-grid (V2G) solutions. As InvestorPlace contributor Sarah Smith explains, “This means that when cars are plugged in and not in use, they can contribute back into the grid.”
Saving Energy While Making Money
V2G technology represents the green energy revolution at its best – and perhaps also its most profitable, as “Independent industry analysts have projected the global V2G technology market to be worth over $17 billion by 2027,” according to Nuvve.
You might have seen the one-way electric vehicle charging stations that are common nowadays. In contract, Nuvve’s V2G technology offers bi-directional vehicle-to-grid capabilities.
In doing so, Nuvve can help to reduce the cost of electric vehicle ownership. At the same time, Nuvve is able to support the integration of renewable energy will contributing to a more sustainable, greener ecosystem.
And, Nuvve is among the earliest movers in this particular niche as the company has been providing V2G services for over four years.
The Bottom Line
At some point, Nuvve will trade on the Nasdaq Exchange under the ticker symbol NVVE. For the time being, though, you can still buy NBAC stock.
Whether you choose to buy it depends on your tolerance for risk. However, if you’re ready to take a position in the unknown but potentially lucrative future V2G, then NBAC/NVVE stock is exactly what you’re looking for.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
