Today is a big day in the electric vehicle charging world. Nuvve (NASDAQ:NVVE) will break free of its blank-check company partner and hit the Nasdaq Exchange as NVVE stock. With the Nuvve SPAC merger now in the rear-view mirror, what should you know?
To start, investors should know that Nuvve has been trading through Newborn Acquisition (NASDAQ:NBAC), a special purpose acquisition company. Because shareholders approved the merger, Nuvve is now emerging to trade independently. This means that there is another pure play on EV charging in the public markets.
With that in mind, here is what you should know about NVVE stock and the Nuvve SPAC merger:
- Newborn Acquisition has been around since February 2020.
- At the time, the blank-check company raised $50 million by offering 5 million units at $10.
- Initially, Newborn was focusing on acquiring businesses in the U.S. or in Asia (outside of China).
- Then, in November 2020, it announced the Nuvve SPAC merger.
- Importantly, Nuvve is another entrant in the electric vehicle charging space.
- However, Nuvve offers vehicle-to-grid (V2G) charging solutions that cars can contribute back to the grid when they are plugged in.
- Shares have gained roughly 50% since Newborn Acquisition first came public.
- Now, NBAC stock will give way to NVVE stock as Nuvve starts trading independently.
- As a result of the Nuvve SPAC merger, the charging company will receive $62 million in proceeds.
- Nuvve will use these funds to help develop its V2G offerings and also provide financing options to customers.
- Another thing to note is that NVVE stock is entering a part of the EV market that has big potential.
- Estimates call for the global V2G technology market to be worth $17 billion in 2027.
NVVE Stock and the Nuvve SPAC Merger
So what else should you about the Nuvve SPAC merger and NVVE stock as it starts trading?
It is important for investors to understand that Nuvve does offer a different solution within the electric vehicle charging market. There are other public charging companies like Blink (NASDAQ:BLNK) and ChargePoint (NYSE:CHPT). However, Nuvve hopes that its vehicle-to-grid solutions will catch on in the U.S. thanks to their advantages. Namely, the company believes the ability for cars to give energy back to the grid and reduce costs could boost consumer adoption. Investors should also note that Nuvve struck a deal with IoTecha to provide bidirectional charging. As a result, Nuvve could see its charging solutions facilitate vehicle-to-home or vehicle-to-business charging.
Additionally, investors should know that momentum in this space is hot. NBAC shares, along with other EV charging stocks, got a big boost on Monday. With Rivian hopping into the space, it is clear that there is great interest in electrifying highways and driveways.
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.