Actions of Northern Genesis acquisition (NYSE: NGA) fell 18.1% in March, according to data from S&P Global Market Intelligence. There was no negative news for the Special Purpose Acquisition Company (SPAC) during the month, but its stock fell in conjunction with sales for the broader electric vehicle space (EV ).
Northern Genesis is in the process of acquiring VE manufacturer Lion Electric and make it public through the merger. Lion Electric manufactures electric buses and other large vehicles and has garnered investor interest through its government contracts and a vehicle delivery agreement with Amazon. But it’s no surprise that Northern Genesis shares lost ground in March as investors took a more cautious stance on EV stocks.
The Electric Lion Lion8. Image source: Electric lion.
As Northern Genesis stock fell in March, Lion Electric reported some promising news. It issued a press release on March 15 detailing plans to start producing its own batteries and modules in 2023.
Lion Electric is building a battery plant in Quebec and expects to be able to produce enough batteries to power approximately 14,000 medium and heavy vehicles each year. Making its own batteries should help the company cut costs and give it better control over its supply chain.
Northern Genesis action regained ground at the start of trading in April. The company’s stock price climbed 3% on the first trading day of the month.
Northern Genesis will hold a special meeting of shareholders on April 23 to vote on the combination with Lion Electric. There is a high likelihood that the merger will go through, and the combined company will begin trading as Lion Electric and trading under the ticker symbol LEV on the New York Stock Exchange.
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