Northern Genesis Acquisition (NGA) Gains Momentum After Ugly February

Over the past month or so, SPACs (special purpose acquisition companies) have seen their stocks soar considerably; however, Northern Genesis Acquisition Corp (NYSE: NGA) is one SPAC stock that has declined considerably.

In February, the stock declined by as low as 5% and much of the decline was driven by the decline in electric vehicle stocks. Northern Genesis is all set to merge with the electric vehicle company Lion Electric and bring it public. However, the widespread decline in electric vehicle stocks has led to a selloff in the SPAC.

It seems that investors are no longer willing to bet big on electric vehicle companies, which still remain largely dependent on rapid growth in order to be viable investments. The selloff in the stock in February was not a flash in the pan. It has continued in March as well and it remains to be seen if the Northern Genesis stock can bounce back.