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Cramer Says Time To Take Profit In These Electric Vehicle SPAC Stocks

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Cramer Says Time To Take Profit In These Electric Vehicle SPAC Stocks

Jim Cramer recommended Thursday that investors trim their exposure to auto-related special purpose acquisition company stocks, CNBC reported.

What Happened: The host of the CNBC “Mad Money” show termed the stocks of QuantumScape Corporation (NYSE: QS), Luminar Technologies Inc (NASDAQ: LAZR), and SPACs of Arrival and Canoo as speculative.

“These stocks have gotten out of control, so I’m begging you to take something off the table,” urged the former hedge fund manager.

Cramer asked investors to be responsible speculators. “Speculative stocks can get overheated, which is why it’s important to take profits while you have them,” he advised.

Why It Matters: The former hedge fund manager has endorsed the four electric vehicle startups which are taking the SPAC route since October, noted CNBC.

He recommended the Bill Gates and Volkswagen AG (OTC: VWAGY)-backed QuantumScape in late October, which merged with Kensington Capital to go public.

A week ago he recommended Luminar and said the stock was a Buy at $15. The autonomous vehicle sensor company went public through a SPAC earlier this month. 

United Parcel Service, Inc (NYSE: UPS)-backed Arrival, a U.K.-based EV maker specializing in microfactories, plans to go public through a merger with CIIG Merger Corp (NASDAQ: CIIC). Cramer had recommended the SPAC stock last week at $17.50.

Cramer also recommended Canoo Holdings Ltd, a California-based EV startup, set to merge with Hennessy Capital Acquisition Corp IV (NASDAQ: HCAC). The stock was termed a Buy by Cramer last Friday at $15.64.

“You can always get back in at lower levels, and I’m very confident that lower prices could be in the cards,” Cramer recommends to investors.

Price Action: On Thursday, QuantumScape shares closed 1.96% higher at $76.61. Luminar Technologies shares closed 7.45% lower at $34.17 extending the fall in the after-hours session by almost 7% to $31.78.

CIIG Merger shares fell 1.63% to $31.38 in the regular session. On the same day, Hennessy Capital shares closed 10% higher at $22 and fell 6.82% to $20.50 in the after-hours session.

Click here to check out Benzinga's EV Hub for the latest electric vehicles news.

 

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