Key Takeaways
In 2020, there were more special purpose acquisition company (SPAC) IPOs in the U.S. than all other years combined. So far in 2021, activity is on track to exceed last year’s total by a wide margin, with some of the largest SPAC transactions likely to be companies in the burgeoning electric and autonomous vehicle (EV/AV) space.
Currently, many of these companies resemble business plans more than revenue or profit-generating businesses, but we see reason for optimism given EV/AV market potential and green-friendly government policies that should help accelerate growth.
Amid a flood of new EV supply, we think a handful of new players appear better positioned than others, namely Fisker and private automakers Rivian and Lucid. Tesla has established a significant first-mover advantage and traditional automakers have largely failed to gain traction with consumers from their EV offerings thus far.
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