SPACs Are in a Bear Market—But a Lifeline for the EV Industry
Why reverse mergers are becoming a pillar for the emerging electric transportation industry
The SPAC (special-purpose acquisition company) mania continues in spite of ongoing criticism and warning bells of a speculative bubble popping. But for the emerging electric vehicle and EV-adjacent economy, the alternative fundraising vehicle has proven to be a vital lifeline, writes Medium editor-at-large Steve LeVine. Just consider the two latest entrants to enter the SPAC arena: Faraday Future and DeepGreen Metals, a battery-mining startup.
“The SPACs have outright rescued a lot of these startups, supplying hundreds of millions and even billions of dollars in capital funding to ventures with unusually large cash requirements compared with the software companies that Silicon Valley investors typically back,” LeVine reports. “As a result, to the degree a robust EV ecosystem materializes, the SPACs may end up a pillar of this new electric transportation industry.”
Critics and naysayers have argued that SPACs face too little regulatory scrutiny resulting in legal fiascos like that of EV startup Nikola Motors. And as LeVine notes, Charlie Munger, Warren Buffet’s longtime investing partner, had this to say about reverse mergers at a recent…
