Popular electric vehicle SPACs have a lot to prove as some expect the bubble to burst

Key Points
  • Electric vehicle startups such as Nikola are turning to blank check firms, also known as Special Purpose Acquisition Companies, or SPACs, as a way to go public and raise an influx of fast cash.
  • Following Nikola going public in June, at least three other aspiring automakers – none have actually produced a vehicle for sale – have announced similar deals.
  • More than 50 SPAC offerings were completed this year through July raising more than $21.5 billion, up 145% from the same period a year ago, according to Goldman Sachs.

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