Until recently, the electric vehicle (EV) stocks were on fire, Jim Cramer told viewers of Mad Money Tuesday evening, But after Monday's implosion of Nikola (NKLA) , the entire group is again under pressure. That includes Switchback Energy Acquisition (SBE) , the special purpose acquisition company, or SPAC, that will soon be merging with ChargePoint.
Cramer said there's a lot to like about ChargePoint, the EV-charging network that operates over 115,000 charging sites across the country. ChargePoint is an integrated solution that offers hardware, software, services and maintenance all in a single solution.
The only problem with ChargePoint? It's valuation. Cramer said the coming reverse merger values ChargePoint at $3 billion, or $11 per share, which makes the deal too expensive, even after the pullback. He recommended investors buy in only if the shares continue to decline.
Let's check out the charts of SBE.
In this daily bar chart of SBE, below, we can see how the shares soared dramatically in a very short period of time. Fast advances can attract "hot money" and this can give early buyers a chance to sell into strength without getting noticed. Prices made a spike high followed by a "close below the low of the high day" top reversal. With no visible chart support likely until we get nearer to $15 a deeper pullback is possible.
The On-Balance-Volume (OBV) line has turned downward and the Moving Average Convergence Divergence (MACD) oscillator has narrowed significantly, which tells us that the strength of the uptrend has weakened.

In this daily Point and Figure chart of SBE, below, we can see that the software is projecting the $11 area as a possible downside price target.
Bottom-line strategy: At some point the new "ChargePoint Holding" may be a buy, just not now.