Is This the Next Tesla? Electric Vehicle Stock Rises 91%

Proterra Inc. announced today that it’s planning to go public through a SPAC deal.

Unlike many of the pre-revenue and pre-delivery deals that happened in 2020, Proterra has been delivering electric buses for over 10 years.

SPACs and electric vehicles remain red-hot sectors. This deal that combines the two has been met with a lot of excitement.

Previous SPAC electric vehicle combos have not performed well after the deals were finalized. But investors haven’t lost their appetite for these speculative stocks.

A SPAC, or blank-check company, is a different way for a company to go public.

It starts when the SPAC sells shares in a traditional IPO to raise cash, but there is no underlying business. The cash sits in escrow while the SPAC seeks a private company to buy or merge with.

Nikola Corporation (NASDAQ: NKLA), Hyliion Holdings Corp. (NYSE: HYLN), and Lordstown Motors Corp. (NASDAQ: RIDE) all went public through SPAC deals last year.

Proterra has a preliminary agreement with the SPAC ArcLight Clean Transition Corp. (NASDAQ: ACTC). There are still several regulatory hurdles to get through and shareholders have to approve the deal before it can be finalized.

When news of the merge broke overnight ACTC stock jumped as much as 91%. At writing it is trading near $22 per share, up about 80%.

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