The Twitter writer @forwardcap published a number of tweets about EV Startups going broke, and these were startup companies that had been funded by SPAC – where a shell company buys the EV company. Check out these EV Vehicle article here and here on EV Pickups.

A company can go public within months if it merges or is acquired by a special purpose acquisition company (SPAC), which as its name suggests, is an entity that exists specifically for the purpose of making such an acquisition. The owners of a target company may also be in a better position to negotiate a favourable price from a SPAC that has a limited time frame for making an acquisition, compared with another buyer like a private-equity firm, which may drive a hard bargain.

Going public through an IPO is a lengthy process that involves complex regulatory filings and months of negotiations with underwriters and regulators. Rivian went public, but these other EV startups were funded by SPAC and are struggling.

“Tesla & Ford are the only American carmakers not to have gone bankrupt out of 1000’s of car startups. Prototypes are easy, production is hard & being cash flow positive is excruciating”

Elon Musk – Twitter