YOUNGSTOWN, Ohio (WKBN) – One of the hottest investing segments has been electric vehicles.
Lordstown Motors, which makes the all-electric pickup truck Endurance, chose a different way to reach the stock market.
If you want to invest in a company, you buy stock. Lordstown Motors chose a SPAC instead, a Special Purpose Acquisition Company.
“It’s a faster way to get to the market,” said Brian Laraway, a partner with Bury Financial Group.
DiamondPeak Holdings provided the funding to get the Endurance electric truck to market. We’ve seen the prototype, but are still waiting for production to start. DiamondPeak is merging with LMC and expects to take them public before the end of the year.
“At which point, there’s probably going to be a lot more people looking at it. So, this would be the way to have some access, and we’ve seen quite a bit of that this year,” Laraway said.
Right now, the SPAC is trading under the symbol DPHC. It started at $10 per share and has been steadily climbing since the SPAC was revealed with Lordstown Motors. Investors have been juiced by a 174 percent gain.
Once they flip the switch, the ticker symbol will be RIDE. And everyone who owned DPHC will become shareholders of Lordstown Motors, but it would come with some bumps.
“There is also the risk that it doesn’t perform well. It is still an individual stock, so there’s inherent risks there,” Laraway said.
But many people want to plug in to the Voltage Valley theme. EV’s are expected to keep growing. Four million cars are being made this year. It’s expected to be 21 million within 10-years.
The major trends pushing electric vehicles are affordability, eco-friendly, better infrastructure, and people are liking them. Investors are finding ways to electrify, too.
“You can look at the components; you can look at the battery aspect. There are so many things, and we do feel the EV trend, it’s here. It’s coming, so there’s a lot of ways to invest,” Laraway said.
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