"THE SON OF TESLA" > Cramer Says This EV Startup Has The 'Best Claim To Be The Son Of Tesla,' Gives Blessing To Buy SPAC Stock
12:29 am ET December 4, 2020 (Benzinga) Print
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.
Related Link: A First Look At Amazon's Rivian-Made Electric Delivery Van
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