Investors are getting a blast from the (recent) past as Arrival (NASDAQ:ARVL) hits Wall Street today. The popular electric vehicle startup has closed its SPAC merger, and now ARVL stock is making its independent debut. So what do you need to know now?
To start, Arrival is an electric vehicle startup hailing from the United Kingdom. It has been trading through a special purpose acquisition company, CIIG Merger (NASDAQ:CIIC), for the last few months. Now that shareholders have given it the green light, the Arrival SPAC merger has closed and Arrival is out on its own.
With that in mind, here is what you need to know about ARVL stock now:
- CIIC stock has been trading since December 2019, when CIIG Merger first came public.
- At the time, the blank-check company raised $225 million in its IPO.
- Nearly a year later, in November 2020, CIIG Merger announced plans to acquire Arrival.
- News of the Arrival SPAC merger instantly excited investors and led to major moves in CIIC stock.
- This is because Arrival brought with it a lot of credibility in the EV world.
- The company is already one of the most valuable startups in the United Kingdom.
- It also has the backing of companies like BlackRock (NYSE:BLK) and Hyundai (OTCMKTS:HYMTF).
- Plus, at the time of the merger announcement, Arrival had an order backlog worth $1.2 billion.
- This included high-profile orders from the likes of United Parcel Service (NYSE:UPS).
- Arrival has focused many of its efforts on city transit — with plans to launch electric vans and buses to help electrify roads.
- Investors should note that this earned it early enthusiasm from Jim Cramer, as well as other SPAC influencers.
- Cramer has highlighted the Arrival production model, which is asset-light and relies on microfactories.
What to Know About ARVL Stock
So as ARVL stock starts trading on the Nasdaq today, what else do you need to know about Arrival?
The first thing for investors to note is that sentiment around EV stocks has shifted quite a bit since November 2020. At the time of the Arrival SPAC merger announcement, electric vehicle firms could do no wrong. Since then, even some of the leading companies have stumbled. Short-seller reports, lost contracts and production delays have weighed on shares, and now retail investors are worried about valuations. Plus, Lucid Motors has become a new star in the space, captivating a lot of attention.
But investors should also know that Arrival is coming public with big plans and some cash in its wallet.
As a result of the merger, Arrival has $660 million in proceeds to put toward delivery ramp-ups and the expansion of its microfactory network. It has already announced customer trials of its van and bus products, and is widening its reach. The company launched a North American headquarters in Charlotte, North Carolina, as well as two new microfactories in the region.
Arrival and ARVL stock may face some pressure along with the sector, but with legitimacy on its side, this is an EV stock to watch.
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.