Hennessy Capital Stock offers a different SPAC EV
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If you’re considering starting a position in electric vehicles (EVs) now, you might as well try something different from the rest. There is nothing boring Hennessy Capital (NASDAQ:HCAC), although you have to dig a little deeper to see the value of HCAC stock since Hennessy is just a shell company.
Yet this front company is bringing a very exciting and unique electric vehicle company to the markets. In particular, Hennessy is carrying out a business combination with Canouwhich aims to transform urban transport as we know it.
Canoo is an unusual name, but they are unusual vehicles. If you are planning to invest in HCAC stocks, then you will need to learn what a modular skateboard is. (Hint: It has nothing to do with Tony Hawk.)
As we’ll find out, Canoo isn’t just different; it’s disruptive, but in a good way. If you’re ready and willing to take a chance with an electric vehicle company that isn’t afraid to transform an entire industry, HCAC stock should be on your radar.
HCAC stock at a glance
If Canoo is an exciting company, the evolution of the HCAC share price is equally exciting. This is a stock that went from a real sleeper to a moonshot very quickly.
Interestingly, HCAC stock rode the runway for many months before the big liftoff. Month after month, HCAC has been magnetized into the $10 area. There were some quick price increases along the way, but those didn’t last too long.
Then came the explosion in November and December. With almost no warning, the price of HCAC more than doubled, hitting $22.43. As of December 11, HCAC shares were still trading in the $20 area.
Clearly, the bulls are firmly in control of the HCAC stock. The EV market is booming right now, so I definitely wouldn’t recommend trying to short HCAC. This one is moving fast and you will definitely want to be on the safe side of the trade.
Prepare for the vote
Even though the November elections are over (I think), there is a vote taking place on December 21 that could have a profound impact on HCAC stock price.
This is the day when Hennessy Capital has scheduled an extraordinary general meeting. Shareholders will vote on the pending acquisition of Canoo by Hennessy at this meeting. With that, hopefully Canoo’s Special Purpose Acquisition Company (SPAC) merger will be finalized.
Above all, investors should prepare for Canoo to trade under a new ticker symbol, GOEV, on the Nasdaq Stock Exchange. It took time, as Hennessy Capital went public in February 2019 and the business combination with Canoo was announced in August this year.
Now that you know what’s to come, you can position yourself accordingly and celebrate the completion of a potentially game-changing merger.
A profoundly different vehicle
How different will Canoo’s first lifestyle, sport and delivery vehicles be? In other words: CEO Ulrich Kranz envisioned the Canoo as a starship, and that’s a pretty accurate description of how the company’s prototype vehicles look.
Yet there’s more to Canoo’s electric vehicle lineup than looks. They are also powerful and practical. Check out the basic stats:
- Lifestyle vehicle: 250+ mile range, 20% to 80% charge time in 28 minutes, 125 mph top speed
- Sports vehicle: range of more than 300 miles, capacity of 4 or 5 passenger seats, relatively small footprint
- Delivery vehicle: range of over 200 miles, total cargo volume ranging from 6.2 to 11 cubic meters, approximate vehicle weight of 2,600 kilograms
All of these vehicles will be based on Canoo’s proprietary skateboard platform. This design features a “unique, self-contained, independently driven rolling chassis” as well as “the industry’s first true steer-by-wire platform, which, along with a composite leaf spring suspension, enables the board’s flat structure wheeled and maximizes vehicle interior space.”
It’s fine if you haven’t understood every word of this description. The key thing to know is that Canoo’s vehicles will offer drivers a smooth ride in a surprisingly spacious and robust next-generation electric vehicle.
With a Hennessy-Canoo reverse merger vote looming, HCAC stock is worth considering today.
Canoo’s vehicles will certainly be different, but that’s not necessarily a bad thing. Bold and forward-thinking investors should be prepared to take a chance on HCAC stocks, as the potential for disruption and profit is definitely there.
As of the date of publication, neither Louis Navellier nor the member of the InvestorPlace research staff principally responsible for this article holds (directly or indirectly) any position in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis has discovered the “master key” to profiting from the greatest technological revolution of this generation (or any other).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.