It’s official: special purpose acquisition company (SPAC) Kensington Capital Acquisition Corp. II and KCAC stock are disappearing, and are being replaced by Wallbox (NYSE:WBX) and the newly tradable WBX stock.
Starting on Oct. 4, the Class A ordinary shares of Wallbox can be bought and sold. So, will you be a buyer, a seller or just a watcher?
The answer should depend, I would imagine, on whether you like Wallbox and its business model. This means you’ll have to conduct your due diligence on the company.
Great news, though – I’m here to help you and make save you some steps in the research process. Along the way, though, I might interject a few opinions on Wallbox, and whether the company deserves your hard-earned investment capital now.
The Lowdown on Wallbox
Founded in 2015, Wallbox specializes in smart charging and energy management solutions.
More specifically, the company designs, manufactures and distributes electric vehicle charging solutions for residential, semi-public and public use.
Wallbox might only be a start-up business, but its stats are impressive. The company has nine offices across three continents, has sold over 100,000 units, and Wallbox’s products are sold in 67 countries.
Moreover, Wallbox’s product lineup is remarkable:
- Level 2 AC chargers (Pulsar Plus, Commander 2 and Copper SB) for home and business applications
- DC fast chargers (Supernova) for public applications
- The world’s first bidirectional DC charger for the home (Quasar), which “allows users to both charge their electric vehicle and use the energy from the car’s battery to power their home, business or send it back to the grid”
- A proprietary residential and business software (myWallbox) which can be used for real-time charger management, fleet and energy management
A Smart Business Model
What interests me the most is the Quasar bidirectional home DC charger.
The field of electric vehicle chargers is starting to get crowded. Therefore, it’s smart for Wallbox to diversify its product offerings into areas outside of electric vehicle chargers.
I also like the company’s vertically integrated business model, which is a fancy way of saying that Wallbox oversees the full product life cycle.
As the company clarifies, Wallbox’s vertical integration “keeps development cycles short, enabling an accelerated time to market.”
Moreover, this isn’t a start-up with just an idea and no operations.
Currently, Wallbox’s products are manufactured in Spain and China. In addition, the company plans to add a U.S. manufacturing facility in 2022.
Big Plans, and a Big Acquisition
While Wallbox is already up and running in multiple geographies, it’s evident that the company is preparing for major expansion.
As Wallbox co-founder and CEO Enric Asunción explained, the SPAC merger should help take his business to the next level.
“The completion of our business combination with Kensington greatly accelerates our strategy globally, including the construction of our manufacturing facility in Texas and working capital needed to support sales growth in over 70 countries,” Asunción said.
Only time will tell whether this plan will come to fruition. We can affirm, however, that one notable company believes in Wallbox and its powerful products.
Reportedly, Iberdrola, Wallbox’s largest institutional investor, announced the acquisition of the first 1,000 Wallbox Supernova fast chargers.
This purchase will be part of Iberdrola’s five-year sustainable mobility plan to deploy more than 150,000 chargers in homes, businesses and public road networks.
The Bottom Line on WBX Stock
By now, you should be getting the impression that Wallbox could be a household name – and even a darling on Wall Street – in the near future.
And here’s some great news: WBX stock is new, so there’s a ground-floor opportunity here.
Best of all, Wallbox isn’t exclusively focused on making chargers for electric vehicles.
Therefore, we just might have a company and an investment that’s unique amid a crowded field – something to get charged up about, I’d say.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
