Shares of Climate Change Crisis Real Impact I Acquisition Corporation (NYSE:CLII) slid 25.9% in February, according to data from S&P Global Market Intelligence. The special purpose acquisition company (SPAC) got caught in the pullback for electric vehicle (EV) stocks that hit at the end of the month.
Climate Change Crisis Real Impact is on track to complete its merger with electric-charging specialist EVgo in this year’s second quarter. Following completion of the merger, the combined company will operate under the EVgo name and trade on the Nasdaq exchange under the ticker “EVGO.”
EVgo actually had some promising business news to announce last month, but it didn’t stop Climate Change Crisis Real Impact’s stock from selling off amid volatility for the broader market at the end of February. Many SPAC stocks have also tended to see explosive gains following an initial acquisition announcement and then a steep sell-off in subsequent trading. Climate Change’s share price skyrocketed roughly 95% in January following the announcement of its merger with EVgo, but the stock has seen a substantial pullback ahead of its upcoming merger.
EVgo published a press release on Feb. 11 announcing that it is expanding availability for Tesla vehicles at its electric charge stations. The company plans to update more than 400 of its stations to include connector ports for Tesla vehicles and launch an additional 200 supported stations this year.
Climate Change Crisis’ stock has continued to fall early in March’s trading. The company’s share price is down 15.7% in the month so far.
Climate Change Crisis Real Impact I Acquisition is a small company with a market capitalization of roughly $375 million, and it could be vulnerable to volatility in the near term. The market’s appetite for EV stocks appears to be wavering, and the timing of taking EVgo public through the upcoming merger could have a big impact on the company’s valuation.
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