Hyperdrive
SPAC Boom Propels Electric Carmakers to Public Markets
- Electric-vehicle companies rush to list via blank-check deals
- Many yet to launch commercial products, prove business models
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Until June last year, Tesla Inc. was the only dedicated electric carmaker based in the U.S. on the stock market. Then special purpose acquisition companies took over Wall Street.
SPACs, or blank-check companies, are shell vehicles that raise money to take a private company public via a reverse merger. Unlike traditional initial public offerings, SPAC deals allow listing candidates to market financial projections to investors, a perk for earlier stage companies that have yet to prove their business model.