Jim Cramer told viewers of Mad Money Thursday evening that we've seen a surge in special purpose acquisition companies, or SPACs, in recent months. Many of these SPACs are concentrated in the electric vehicle space, merging with smaller and riskier startups like Nikola Corp. (NKLA) . Cramer reiterated that investors need to be careful with these SPACs, as the hype rarely lives up to reality.
Investors looking for electric vehicles can invest in Tesla (TSLA) , Cramer said.
But there is one EV SPAC that might be interesting and that's Hyliion Holdings (HYLN) , makers of electric power trains for large trucks. Cramer explained that Hyliion owns its battery technology and has impressive software to boot.
That said, Cramer noted it's still early for Hyliion, and shares are likely to see more downside before they bottom. Under $20 a share however, he would be tempted to do some buying.