EV Charging Company ChargePoint Going Public Via SPAC: Report

Electric vehicle charging station operator ChargePoint is the latest EV company that's headed for the public markets via the SPAC route, according to a Wednesday report.

What Happened: Reuters reports that a deal is being finalized between Switchback Energy Acquisition Corporation SBE and ChargePoint. The deal would be valued at more than $2 billion and announced next week.

ChargePoint was founded in 2017 and operates a national network of charging stations for electric vehicles. Rick Wagoner, former CEO and chairman of General Motors Company GM serves on the company’s board of directors.

Switchback Energy Acquisition raised $300 million in July 2019. Shares have traded between $9.38 and $13.71 over the last 52 weeks. The stock has fallen below its $10 offering price at times in 2020.

Why It’s Important: ChargePoint has a list of large companies that are investors or customers.

The company was recently valued at $1.37 billion in a $127-million funding round in August. Notable investors include Daimler AG, BMW, Chevron Corporation CVX and American Electric Power Company Inc AEP.

Charging stations for electric vehicles continue to pop up across the country. Retailers and cities are expanding their presence to attract more people and customers to regions.

Target Corporation TGT recently signed a deal to add more Supercharger stations from Tesla Inc TSLA to attract customers.

Wal-Mart Inc. WMT has a partnership with Volkswagen Group’s Electrify America brand.

Along with its EV charging stations, ChargePoint has a business focused on commercial and fleet operators to help with electric vehicles like buses and vans. The recent funding round was intended to increase the company’s commercial and fleet portfolio in North America and Europe.

ChargePoint has more than 111,000 charging stations. The company said that someone plugs into one every 2 seconds, and 82.1 million charges have been completed to date.

SBE Price Action: Shares of Switchback Energy Acquisition gained 27.27% Wednesday, ending the session at $13.30. 

Photo courtesy of ChargePoint.