The SPAC merger between Switchback Energy (SBE) and Chargepoint has been confirmed according to a recent filing with the SEC.
The completion of the merger is expected on December 15, 2020.
In this case Switchback Energy Acquisition is merging with ChargePoint in a $2.4 billion deal. When the merger is final, the new company will be known as ChargePoint Holdings. So is now a time to jump in on SBE stock?
I’ve been skeptical about many of the SPAC IPOs that have been announced this year. Maslow’s hammer, colloquially phrased as “if all you have is a hammer, everything looks like a nail,” comes to mind. But the merger of SBE with ChargePoint is one that I can get amped about (pun intended).
Which came first the chicken or the egg? Don’t put the cart before the horse. There are any number of clichés and idioms we can use to describe the link between electric vehicles and the infrastructure to power them.
But with ChargePoint’s focus on building out the EV infrastructure, it looks like SBE is betting on the right horse.
The simple answer is that the EV market will not grow as expected. There is a growing sentiment that 2021 is going to be a strong year for the economy no matter which candidate wins the White House.
One reason for that is it seems almost certain there will be more stimulus. Right now, we’re just debating when and how many zeroes.
But by definition the need for stimulus means all is not well with the economy. That could put a crimp in the near-term growth forecast for EVs. Or it could halt demand for building an infrastructure. Or it could be a little of both.
Should you invest in Switchback Energy (SBE)?
Shares of Switchback Energy (SBE) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next of years. The majority of the metrics point to this investment being highly attractive.