Should Investors Trust Tritium Stock?

While there is no definitive event that caused confidence in special purpose acquisition companies (SPACs) to collapse, the rats institutional investors started jumping ship in the second half of 2021. You can see the switch flip around July 2021, based on how much money investors pulled out before a SPAC merger was completed, according to data pulled together by some big-time international law firm.

Between January and July 2021, the average monthly redemption rate for SPACs ranged from 7% to 43%. In contrast, average redemption rates ranged from 43% to 67% between July and November 2021. Through the first nine months of 2022, the average redemption rate was more than 80%. Talk about a vote of no-confidence. We were sounding the alarm back in mid-2020 that SPACs screwed retail investors. Since then, we’ve found only a handful worth looking at once the dust had settled. As promised, we’ve continued to follow up on a few more that seemed interesting, except for the fact that they had opted to take the back door to the public markets. 

That brings us to Tritium (DCFC), one of a half-dozen electric vehicle charging