Northern Genesis (NYSE:NGA) stock is flying high this morning on the heels of a major announcement from the Lion Electric CEO.
The two companies announced a special purpose acquisition company (SPAC) merger in November 2020. This merger is the mechanism by which Lion Electric will go public, and as new details of the merger come forward, investors are seeing surges in NGA stock.
Lion Electric is an electric vehicle manufacturer based in Canada, with primary interests in electrifying large transportation vehicles. Its portfolio includes all-electric school buses, public transport buses and semi-trucks. The company is seeing success both in Canada and abroad. Most notably, California’s largest school district purchased 10 Lion Electric school busses in February.
Investors are seeing some of the biggest gains since the Lion Electric SPAC merger’s reveal this morning as Lion CEO Marc Bédard joined Canadian Prime Minister Justin Trudeau for a major announcement.
NGA Stock Boosted by Announcement of Battery Factory
The Canadian government is putting lots of support behind Lion Electric. Trudeau has revealed that the federal and provincial governments will each be investing 50 million CAD into the construction of a battery factory and innovation center in Quebec.
This news is a big deal for the company and for investors in NGA stock. Chiefly, the factory will do much to bring down the cost of battery production. Moreover, it will boost production numbers, allowing the company to make 14,000 vehicles annually. These factors give Lion a sharp edge over other competitors who might not have as stable access to battery packs.
As this news comes forward, early investors in NGA stock are seeing their shares gaining. In fact, shares are currently up 12%. Investors should look for further gains throughout the day.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.