A stream of EV-related startups backed by blank-check firms is lining up to go public so there are plenty of choices. But like Tesla in the early days, few have products ready to sell or any likelihood of generating significant revenue anytime soon.
Instead, investors will be relying on rosy production, sales and revenue forecasts for new cars, trucks and batteries, all set to be jostling for a slice of markets that will be far more crowded than when Tesla’s cars first hit the road.
Take Fisker Inc, for example. It was launched in 2016, just three years after the bankruptcy of its predecessor and early Tesla rival Fisker Automobile.
In July, Fisker Inc announced a $2.9 billion reverse merger deal with Spartan Energy Acquisition Corp, a Special Purpose Acquisition Company (SPAC), and is planning to go public later this year.
It has no revenue and its Fisker Ocean electric sports-utility vehicle (SUV) is at least two years away from production in a project heavily dependent on nailing down deals with partners who will build the car and provide key components.
That’s not particularly unique for young companies in the sector looking to use SPACs to go public and bypass the scrutiny of a traditional IPO process, according to company presentations and interviews with executives and investors.
That also didn’t seem to be an issue