- NYSE:PIC falls by 4.13% on Tuesday after surging over 10% on Monday.
- Pivotal Investment Corporation II confirms reverse merger IPO with XL Fleet to produce electric trucks.
- The reverse merger would value XL Fleet at $1 billion.
NYSE:PIC is just the latest SPAC or special purpose acquisition company offering that is set to take a company public after agreeing to a reverse merger with XL Fleet, an electric truck company that is attempting to disrupt the suddenly crowded sector. PIC shares spiked up to $14 on Monday as the stock continued to rise after the announcement the previous week. On Tuesday, the stock price slid down 4.13% to close the trading session at $12.76.
XL Fleet’s reverse merger with PIC is just the latest in a series of SPAC IPOs that have debuted on Wall Street over the past few months. In the electric truck industry alone the infamous Nikola (NASDAQ:NKLA),Hyliion (NASDAQ:SHLL), and Lordstown (NASDAQ:DPHC) come to mind, while other successful companies such as Draftkings (NASDAQ:DKNG) have also gone the SPAC IPO route. While these mergers are far from a sure thing, it is interesting to note that XL Fleet will do things like providing environmental analytics on vehicle performance to its customers.
PIC stock forecast
PIC investors can expect shares to continue to rise as XL Fleet is currently valued at $400 million which is a far cry from the $1 billion that the firm is anticipating. The company also announced that it has a 12-month sales list worth over $220 million which bodes well for the short-term future. This is a stark contrast to Nikola who at this point may never have working trucks on the roads, which shows how much of an addressable market there is in the electric truck industry.
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