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Lion Electric stock was initially supposed to trade on exchanges after an IPO. Instead, the company has decided to go the SPAC route. That means the stock will have some help getting to the public markets, and it will do so more quickly. On November 30, Lion announced a merger with Northern Genesis Acquisition Corp. (NGA).

The company is currently valued at $1.9 billion and will trade on the NYSE. The Lion Electric stock ticker will show up on the NYSE as "LEV." But is Lion Electric a buy?

SPACs have been on fire in 2020. Some have even called it the "year of the SPAC." And believe it or not, this latest SPAC merger with Lion could be one of the biggest buying opportunities yet. Many SPAC deals in 2020 have involved emerging electric vehicle stocks wanting to cash in on the advent of EVs. Tesla (TSLA)'s newfound profitability over several quarters seemed to push EVs into mainstream headlines.

Now with several COVID-19 vaccines underway in 2021, there seems to be even more upside in the broad market. Continuing gains in the broad market indexes gives hope to any stocks making their debuts.

This bodes well for EV investors, in stride with a 687% industry growth projection from McKinsey. The research firm said this industry could go from $3.3 million to $26 million in value by 2030. This is all exciting news for EV stocks. But the story of the EV sector is really a "tale of two cities."

Why EV Stocks Aren't Made Equal

That is, an EV stock can either be a Workhorse Group Inc. (WKHS) or a Nikola Corp. (NKLA). We recommended Workhorse back in Jan. 30, when it traded for just $2.76. Readers who listened would have banked 689% profit by now. Nikola, on the other hand, has taken a relative nosedive since its IPO in June. The stock went from a high of $79 to just $18, a 77% loss for investors who bought at the top.

The biggest difference between these companies was that Workhorse already had some money in play. Workhorse had sold some electric truck units already, it had a budding delivery drone system, and it was in the process of setting up an old GM production plant for its own purposes.

Nikola, however, had no sales. And its CEO stepped down in September after being accused of fraud – a short-seller report said he had exaggerated the company's technology. General Motors Co. (GM) was also going to buy an equity stake in the company, but it recently backed out. Of course, Nikola isn't dead in the water yet. But this distinction with Workhorse paints a helpful picture of how to go about investing in new EV stocks.

Workhorse went on to pass a safety standards test and is moving closer to a contract with the U.S. Postal Service. It's soaring while Nikola still sits under $20. Now, the question today is whether Lion is a Workhorse or a Nikola. Let's find out.

Why Lion Electric Could Beat Workhorse

What's better than a deal with USPS? How about a deal with Amazon.com Inc. (AMZN)? That's right, Lion Electric is supplying Amazon delivery trucks. For now, it's set to provide trucks for the company's "middle mile" operations, which is transport from warehouses to distribution centers. The deal is only 10 trucks thus far. But this is bigger than it sounds.

Amazon is the largest e-commerce company in the world by market cap, $1.6 trillion. The company doubled its revenue as more customers began buying groceries and other goods via delivery under lockdown. But even as lockdowns have ended or become more moderate, e-commerce is not expected to slow down. The e-commerce industry is set to be valued at $4.9 trillion in 2021. That will have been 265% growth from $1.3 trillion in 2014.

Meanwhile, grocery and food delivery apps are having their heyday, sure to have its hooks in the populace with or without a lockdown.

The bottom line here is that Amazon demand will continue to thrive. And that's going to require more trucks. So, Lion Electric getting a foot in the door, however big, is good news for Lion Electric stock. Now, you might not want to simply buy a stock because it's partnered with Amazon. But there are a few other reasons to watch this one.

Is Lion Electric Stock a Buy?

Lion Electric is a Canadian electric truck and bus company with a growing American presence. It delivered its first electric trucks in September 2020. And it is going to supply the entire Canadian National Railway with its trucks. The company is already supplying electric school bus fleets around the U.S. in states like California and Minnesota. But it plans to begin manufacturing in the United States next year, as well.

Right now, Lion Electric is checking out 10 different places to build in nine states. These include California, Illinois, Indiana, Michigan, New York, Ohio, Oregon, Pennsylvania, Washington, and Wisconsin. Lion currently produces 2,500 vehicles per year at its Canadian facility, featuring all-electric urban trucks and buses. It plans to deliver 650 additional trucks and buses in 2021.

These companies have raised a combined $200 million in private investment in public equity (PIPE) and $320 million in cash, which will be used to fund Lion's expansion in the U.S. Lion hopes to start producing trucks in the United States in 2023.

Meanwhile, the electric bus business shows promise. In addition to its heavy-duty truck, Lion has three school bus models and a transit bus. Some expect 100% of school buses on the road to be electric by 2030. And Lion has had first-mover advantage in this field. In fact, it was responsible for North America's first all-electric school buses, unveiled in late 2019.

Schools may have been shut down in 2020, but Lion's product segments are diversified enough to sustain the company until they reopen. Now that we're looking forward to vaccines with 90% success rates, demand for school buses could give Lion electric stock a nice jolt down the line. This company is clearly on the way to massive growth.

Last year, Lion increased its employee count by 51%. It had an annual revenue of $7.7 million per year, which will no doubt rise as the company further penetrates the United States. It was founded in 2008 and already has over 300 vehicles on the road.

As far as EV stocks go, we'd say Lion is in league with Workhorse -- or better.