Investment Opportunities

Volta IPO: Stock Coming in 2021 With SPAC Tortoise Acquisition II

Volta stock is officially on the way. The company announced an agreement with SPAC Tortoise Acquisition Corp. II (NYSE: SNPR) for a Volta IPO in 2021. And investors are excited for another electric vehicle (EV) opportunity.

But should you invest in Volta? Here’s what we know…

Volta IPO: The Business

The Volta IPO lets you invest in a network of charging stations like the one pictured.

CEO Scott Mercer and president Chris Wendel founded Volta in 2010. Named after Alessandro Volta, the inventor of the electric battery, Volta is an EV charging network. The company claims its chargers help brands and real estate locations as well as consumers. In addition to offering free charging for EVs, the chargers provide advertising space for businesses.

According to Mercer…

The electrification of mobility is one of the largest infrastructural shifts of our generation and Volta’s charging network is ready to anchor the accompanying consumer behavior that will change along with it. As we transition out of the carbon economy, we will see a fundamental transformation of our existing fueling infrastructure. Businesses anticipating this shift can take advantage of a revenue transfer from gas stations to retail locations in the community where consumers go, live, shop and play.

The company announced an official Volta IPO. But why is Volta stock coming now?

Volta Stock: Company Highlights

In the Volta IPO investor presentation, the company lists three markets it believes it addresses: vehicle fueling ($500 billion), data ($500 billion) and media ($170 billion).

In fact, market opportunity was listed first in Volta’s reasons for why investors should choose them. That list also includes…

  • A differentiated and unique EV charging business model
  • Compelling revenue diversity and unit economics
  • Top charging utilization among competitors
  • A highly visible site pipeline that is creating predictable growth
  • An experienced management team.

Additionally, investors should be familiar with Volta’s financial forecasts. Volta’s long-term revenue is comprised of three sources: charging network, behavior and commerce, and data and other. In total, Volta estimates it brought in $25 million in revenue in 2020. And it estimates it will hit $826 million in revenue by 2025.

Volta also claims it will have increasing profits. For 2020, estimated gross profit was $8 million. By 2025, Volta forecasts it will have $436 million in profit. For more information on Volta’s financial projections, check out the Volta IPO investor presentation.

However, Volta stock isn’t coming to market the traditional way…

SPAC Tortoise Acquisition II Taking Volta Public

There’s a growing EV bubble in the IPO market. 2020 was the year of SPAC IPOs, and their main target was EV startups. The trend continues in 2021, as startup EVgo plans to go public.

“SPACs” are special purpose acquisition companies. Although they have no business operations, these companies go public in order to raise funds. Those funds are then used to acquire a private company. In this case, Volta is the private company and Tortoise Acquisition Corp. II is the SPAC.

Tortoise II’s sister SPAC took EV company Hyliion public last summer. That means management understands the SPAC IPO process and the EV market. CEO Vince Cubbage commented on the Volta SPAC IPO…

We have looked for an opportunity where our capital could be the catalyst to unlock the full potential of a high-growth business with a market-leading position, and have drawn upon our expertise in the EV-space. Volta is a clear leader in EV infrastructure with exceptional unit economics and a truly differentiated business model. The visionary management team led by founder and CEO Scott Mercer, and co-founder and President Chris Wendel only reinforced our belief that Volta will be a leader. We are thrilled that they chose us as partners to help them realize and accelerate the company’s enormous potential. We are looking forward to supporting them as they continue to deploy their differentiated public charging network and do their part to contribute to a brighter and cleaner energy future.

Mercer added…

Volta’s unique business model is poised to capture the vast consumer spending shifts that will accompany our society’s shift from carbon to electric. With the shift to electric mobility, consumers will expect to fuel where they go. Volta will anchor the infrastructure change, transforming fueling locations away from standalone gas stations to high traffic locations in the community where consumers live, work, and play.

So for those interested in Volta stock, let’s look at the details.

Volta SPAC IPO Details

Announced on February 8, 2021, the Volta SPAC IPO values the company at more than $2 billion. The deal is expected to create up to $600 million in proceeds. Tortoise II will put up $345 million in its offering. The remaining amount will come from an upsized private investment in public equity (PIPE) at $10 a share. The funds will be used to accelerate commercialization, production, demand-generation efforts and operational growth. Volta shareholders will roll 100% of equity into the new company, holding about 64% post-merger.

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Volta stock will trade on the NYSE under the ticker symbol VLTA. According to the press release, investors can expect the Volta IPO date to be in the second quarter of 2021.


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