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7 Current And Former SPACs That Could Be 2020 Election Plays

Chris Katje
·2 min read

The 2020 presidential election is the biggest story for the public markets this week. Here is a look at how the election could impact another big story this year: special purpose acquisition companies. 

Lordstown Motors (NASDAQ: RIDE) shares gained 22.48% Tuesday. The former SPAC is an electric vehicle play that could be a winner under a Joe Biden presidency, who is expected to favor increased tax credits for electric vehicles.

The company also has been highlighted by Donald Trump. 

Trump highlighted the company bringing back jobs to Ohio at a former General Motors Company (NYSE: GM) plant.

Switchback Energy Acquisition Corporation (NYSE: SBE) is a SPAC merging with ChargePoint.

“We’re going to build 500,000 charging stations on all the highways we’ll be building in the future,” Biden said at the first presidential debate.

ChargePoint, one of the largest charging station companies in the U.S., could be a big winner under Biden.

Related Link: Cramer Discusses EV Spacs, Highlights Fisker, Hyliion

Fisker Inc (NYSE: FSR) shares have traded higher after completing their SPAC merger. The company is one of several electric vehicle plays that could benefit from Biden’s plan to focus on tax credits for electric vehicles. 

Fortress Value Acquisition Corp (NYSE: FVAC) is a SPAC merging with MP Materials, a rare earth mineral producer.

In October, Trump signed an executive order to expand the production of rare earth minerals to try and lower the amount imported from China.

MP Materials is the only rare earths miner in production in the U.S. and has an existing deal with the Department of Defense.

dMY Technology Group (NYSE: DMYT) is bringing Rush Street Interactive public via a SPAC deal.

Rush Street Interactive provides online, social and land-based casino and sports betting products. The company has expanded into additional states and could be a winner from the 2020 election, with three states voting on sports betting legalization.

Clover Health is going public via SPAC Social Capital Hedosophia Holdings Corp III (NYSE: IPOC). The company has the fastest-growing Medicare advantage plan in the U.S.

While Biden didn’t run on a Medicare-for-all plan like most of his Democratic opponents, he has proposed lowering the Medicare eligibility age.

The company could be a winner with an increased number of people seeking Medicare plans as it rolls out its plan for national expansion.

Pivotal Investment Corporation II (NYSE: PIC) is bringing XL Fleet public via a SPAC. XL Fleet provides electrification solutions for Class 2-6 vehicles.

The company could be a winner with Biden’s broad plan for electrification in the automotive industry and lower emissions.

Disclosure: Author is long shares of SBE.

Photo courtesy of ChargePoint.

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