Cramer Says This EV Startup Has The 'Best Claim To Be The Son Of Tesla,' Gives Blessing To Buy SPAC Stock
Jim Cramer has given his “blessing” for investors to buy shares of CIIG Merger Corp (NASDAQ:CIIC), the blank-check company merging with British electric vehicle company Arrival.
What Happened: The “Mad Money” host said on his CNBC show that if the stock “comes down below $17.50, you can buy it hand over fist, because this one has the best claim to be the son of Tesla — or daughter, to break the tyranny of that awful cliche.”
The automaker, backed by United Parcel Service, Inc (NYSE:UPS), Hyundai Motor Company (OTC:HYMTF), and BlackRock Inc (NYSE:BLK) is “revolutionizing the entire auto industry, and they own a ton of intellectual property,” according to Cramer.
“They make all their own components, they’ll be cost competitive with gasoline and diesel, and that’s why Arrival got that $5 billion valuation from the get-go,” explained Cramer.
Cramer said Arrival’s microfactory concept could have an impact beyond auto industry and it could “revolutionize manufacturing.”
“If they can make an electric van or truck with a lower cost of ownership than the fossil fuel-powered alternatives, that’s a whole new ballgame,” the former hedge-fund manager theorized.
Why It Matters: The merger between CIIG Merger and Arrival was reported last month. The former is backed by Peter Cuneo, the former CEO of Remington and Marvel.
BlackRock has pumped in $118 million into Arrival, which would allow the London-based company to open a manufacturing facility in the United States.
UPS has placed an order of 10,000 electric vans with Arrival, worth approximately $500 million.
Price Action: CIIG Merger shares rose 16.06% to $25.01 in the after-hours session on Thursday and closed nearly 9.6% higher at $21.55.
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