Anticipate a Promising EV Merger With TPG Pace Beneficial Finance

Sometimes investing should be viewed as a waiting game in which the most patient shareholders will reap the greatest rewards. I believe that this is the case with TPG Pace Beneficial Finance (NYSE:TPGY), as the holders of TPGY stock could enjoy substantial gains this summer.

an electric vehicle (EV) at a charging station representing EV stocks

Source: Alexandru Nika /

Keep reading, as I’ll clarify why I’ve identified the summer of 2021 as an important time for TPG Pace and its stakeholders.

For folks who’ve held the shares, it’s been a wild ride, with sizable ups and downs. That’s fine for short-term traders, but long-term investors might not appreciate the volatility.

My message to  investors is to stay the course and ride out the peaks and valleys. With a potentially game-changing reverse merger in the works, you might find that this admittedly bumpy ride will be worth the price of admission.

A Closer Look at TPGY Stock

Dec. 10, 2020 was an important day for the owners of TPGY stock. That’s when TPG Pace, a special purpose acquisition company (SPAC), revealed that it had entered into an agreement to acquire EVBox Group.

Generally speaking, TPG’s share price had stayed near the $10 level prior to that announcement. That’s a typical price for SPAC stocks before their merger partners are disclosed.

The market often likes to buy up SPAC stocks when reverse-merger deals are announced. That’s especially true when they are merging with companies in the electric-vehicle space.

And so, in the wake of the news, the TPGY stock price exploded, reaching the $30 level on Dec. 23. Later, on Feb. 8, 2021, the stock hit a 52-week high of $34.28.

However, folks who bought the shares near that peak price were soon  disappointed, as a downward trend ensued, with the stock settling at $17.30 on April 23.

Perhaps I can offer some comfort to anyone who’s lost money on TPGY stock and is still holding shares of the name. As we’ll see, holding your shares might be the best strategy in 2021.

Answering the “When” Question

You may be wondering when TPG Pace expects to finalize its acquisition of EVBox. Don’t worry; I won’t keep you in suspense any longer.

TPG Pace stated, “Assuming that EVBox Group completes its 2020 audit on a U.S. GAAP basis by early May, we expect to close the business
combination in June of 2021.”

So this could be a terrific summer for TPGY stockholders. I think it would be a shame for anyone to dump their shares for a loss today, only to watch the stock price catapult higher in a couple of months.

But please be aware that things don’t always go according to plan. For all we know, the closing of the reverse merger could be meaningfully delayed.

And while you’re waiting, the share price may decline. To help you keep the faith, I’ll now give you some reasons to stay excited about EVBox, the acquisition target.

Charging Up Your Portfolio

EVBox is described by TPG Pace as a “leading charging solutions platform for electric vehicles in Europe.” As of February of this year, EVBox had sold more than 235,000 charging ports.

I call charging ports a “picks and shovels” play in the electric vehicle market.

Think about gold miners for a moment. You can make a risky bet on a particular mining company. As an alternative, however, you can invest in a company that sells picks and shovels to many gold mining companies.

Similarly, you can bet on a company like EVBox, which doesn’t manufacture electric vehicles, but instead sells charging stations that will be needed to keep these vehicles running.

As Matt McCall and the InvestorPlace research staff put it, “It doesn’t matter which EV manufacturers win. It doesn’t matter which suppliers win. As long as EV usage expands, charging-station developers are going to prosper.”

Plus, TPG Pace asserts that Europe, EVBox’s biggest market, is currently the largest and fastest-growing electric vehicle market.

The company explains, “European EV sales have more than tripled over the past two years and {Europe} now stands as the clear leader in EV adoption with 10% of new auto sales in 2020 being electric.”

The Bottom Line

There’s a strong argument to be made that EVBox is a right-time and right-place type of company for the global electric vehicle revolution.

And as for TPGY stock investors, there may be volatility ahead. Don’t be surprised, though, if the shares set records in the summer of 2021.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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