Why CIIG Merger (Arrival) Stock Surged Over 30% Last Month
Shares of CIIG Merger (NASDAQ: CIIC) jumped 31.8% in December, according to data provided by S&P Global Market Intelligence. The special-purpose acquisition company (SPAC) announced in November that it will merge with Arrival, a U.K.-based maker of electric buses and commercial vans.
The story here is pretty simple: CIIG's stock did well in December thanks mostly to the intense investor interest in everything having to do with electric vehicles. Its largest gain came early in the month, on a spike following the publication of an interview with CEO Avinash Rugoobur.
Looking a bit deeper, it's the company's manufacturing plan that could make Arrival particularly interesting to auto investors. Rather than building a traditional automotive plant, which can take over a year and cost $1 billion or more, Arrival plans to build its vehicles in "microfactories" that can be up and running in roughly six months at a cost of $50 million each. The idea is that it can add new microfactories as needed, purchasing more manufacturing capacity in small increments as its sales grow.
Source Fool.com
