Arrival (ARVL) debuted on the Nasdaq Thursday after a reverse merger with a special purpose acquisition company, signaling ambitious plans for more “microfactories” during 2021. Arrival stock rose as the market rebounded.
The pre-revenue maker of electric vans for deliveries raised $660 million via the merger with CIIG Merger, valuing the business at $13.6 billion.
“Through the course of the year, you’ll certainly see some more” microfactory announcements, Mike Abelson, head of Arrival’s North American operations told Reuters. “What you’ll start to see now is the footprint start to expand pretty dramatically.”
Those decentralized “microfactories” can be up and running in as little as six months, according to the company.
Founded in 2015, U.K.-based Arrival makes electric vans and buses for commercial customers. While the company is pre-revenue, it has customers and orders.
It will start testing its electric vans on public roads for “key customers” — UPS (UPS) invested in Arrival and ordered 10,000 vans — this summer, with full production set for third quarter of 2022. Trials of Arrival’s electric bus with First Bus, one of the U.K.’s largest transport operators, begin this fall.
Shares opened at 22 fell to 18.10 intraday before rebounding for a 5.6% gain at 22.80 in Thursday’s stock market trading. Arrival stock rose as high as 24.95 intraday. The reverse merger tapped two of 2020’s hottest investing trends — EVs and SPAC or blank-check deals.
Arrival’s EVs enter a competitive space. Ford (F), General Motors (GM), Tesla (TSLA) and Workhorse Group (WKHS) all eye the market for electric delivery vans. EV startups such as Nikola (NKLA), Canoo (GOEV) and Rivian also eye the market for electric trucks and vans.
Already, Rivian’s electric vans for Amazon.com (AMZN) are making test deliveries.
Arrival Vs. Rivian, UPS Vs. Amazon
Amazon-backed Rivian stock could debut this year or next, valued at $50 billion. Rivian aims to put 10,000 electric vans for Amazon on the road by 2022. Its pickup is due this summer.
Amazon, a UPS customer, is becoming more of a rival to the shipping giant as it grows its own delivery network.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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