Shares of special purpose acquisition company (SPAC) Switchback Energy Acquisition (NYSE:SBE) were moving higher today, trading up more than 10% as of 3:30 p.m. EST.
The stock has almost tripled since it announced it was combining with leading electric-vehicle (EV) charging station company ChargePoint on Sept. 24.
The companies plan to close the transaction before the end of this month, forming a new company valued at $2.4 billion. ChargePoint Holdings will trade on the New York Stock Exchange upon closing the deal.
ChargePoint believes its 2019 revenue of $145 million will grow to over $2 billion by 2026. The company sells charging station hardware, and also has recurring software and service revenue.
ChargePoint is the leader in charging station networks. It has 73% of the North American market for stations using 240-volt power, and is also growing its 16 European markets.
The companies believe there is huge potential for the charging market. Switchback says that charging infrastructure investment in the U.S. and Europe is projected to be about $60 billion 10 years from now, and will triple in the decade after that.
Investors have been driving shares up recently, however. New investors should be aware that there will inevitably be competition and invest a proper amount in this speculative area.