Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
Lordstown Motors Just Became the Hottest Electric Vehicle Stock
https://moneymorning.com/?p=1166776
Required Please enter the correct value.
Twitter

Lordstown Motors Just Became the Hottest Electric Vehicle Stock

By Mike Stenger, Associate Editor, Money Morning • August 6, 2020

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

Lordstown Motors just became one of the best electric vehicle stocks to buy. And it all has to do with a little thing called special purpose acquisition companies (SPAC).

Special purpose acquisition companies (SPACs) have become popular this year. Otherwise known as "blank check" companies, they are formed solely for the purpose of buying an existing company using funds from an IPO.

Market uncertainty during COVID has resulted in a weak year for IPOs. So these companies have been seen as a profitable alternative.

Today, we're going to discuss what may or may not be one of the most interesting SPACs to come out of it.

We wrote about Bill Ackman's Pershing Square Tontine Holdings IPO back in June. That company is targeting "mature unicorn" startups. But the SPAC we're covering today is a bit more "niche."

It's an electric vehicle SPAC. The electric vehicle industry is set to pop 687% by 2030, from $3.3 million to $26 million, according to McKinsey. And competition is mounting...

We already saw VectorIQ, a SPAC, merge with Nikola Corp. (NASDAQ: NKLA) earlier this year. It sent NKLA soaring 125%.

This put other EV stocks on the map as well.

Workhorse Group Inc. (NASDAQ: WKHS) has popped 400% around the same time. We recommended this one back on Jan. 30, when shares were just $2.76. It's now at $16.57.

NIO Inc. (NYSE: NIO) also popped as high as 251% from the beginning to the middle of June.

Now, another electric vehicle SPAC is taking the spotlight...

The Best SPAC to Buy Now

DiamondPeak Holdings (NASDAQ: DPHC) popped 100% from Friday to Tuesday, after announcing it would purchase Lordstown Motors.

The newly merged company will trade under the ticker RIDE. This is interesting for a number of reasons.

First, it was a surprise that DiamondPeak entered the electric vehicle market. This company first became a SPAC with its March 2019 $250 million IPO, meaning to go into real estate.

Just Released: Our new Premium Stock Pick not only held its ground against the COVID-19 market sell-off; it actually gained in value. And it's going to keep climbing on a major new catalyst. Get the pick for free here...

However, with the recent pop in electric vehicle stocks this summer, it looks like DiamondPeak reconsidered that position.

Here are some things to consider before buying RIDE...

Should Invest in Lordstown Motors?

The merger between DiamondPeak and Lordstown Motors is expected to generate $675 million for Lordstown to produce its hallmark electric pickup truck, the Lordstown Endurance.

The Endurance already has 27,000 preorders for the pickup since its unveiling in June. The company expects $1.4 billion in revenue from the truck.

The deal with DiamondPeak is not the first savvy move by this carmaker.

Lordstown also currently has the right to build and sell a truck developed by Workhorse at its plant in Ohio. Workhorse also owns 10% of Lordstown and received a pop from the DiamondPeak merger.

This company also made a deal last year to purchase 6.2 million square feet of a General Motors Co. (NYSE: GM) assembly plant. This would help speed up production.

Some analysts say the Lordstown Market cap could hit $1.6 billion, including $75 million in investments from General Motors. Investors such as Fidelity Management have also committed to funding the company.

Shares of Diamondpeak are supposed to transition under the Lordstown name by the fourth quarter of 2020. Investors who are bullish on electric vehicle stocks may want to consider buying shares.

Normally, when you invest in a SPAC, you want to get in early, usually during the IPO. It's a matter of whether you like the specific SPAC's approach to investing.

That's typically the greatest chance at a payoff with SPACs. But since the electric vehicle market is so promising down the road and Lordstown is such a viable competitor, this SPAC might have some legs to it.

In this case, all you need to do is pick up shares of DiamondPeak for $12.46 and wait for the shares to transition.

The FCC's Recent $10 Billion Initiative Is Going to a Single Technology

The White House has put a new Internet technology on the fast track.

But what the public hasn't caught onto yet is that this $10 billion initiative has just opened up a new opportunity to invest - in the Internet itself.

And folks who strike while the iron's hot stand to lock in an unprecedented windfall.

Click here to find out how.

Follow Money Morning on Facebook and Twitter.

Join the conversation. Click here to jump to comments…

Mike StengerMike Stenger

About the Author

Browse Mike's articles | View Mike's research services

Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.

… Read full bio

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

March 28, 2023 • By Nick Black

Invest in the Future of Finance with SingularityDAO

March 28, 2023 • By Chris Johnson

The media just blamed you for the banking crisis

March 28, 2023 • By Garrett Baldwin

Anatomy of a Credit Crisis
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz