In 2020 and 2021, we had several months when enthusiasm for new EV manufacturers was crossed with the resurgence of blank-check companies. Also called special purpose acquisition companies, or SPACs, these listed shell companies promised quick access to capital and a path to the public markets, and a wide array of tech and tech-ish companies took them up on the offer.
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In 2020 and 2021, several electric vehicle companies took the SPAC route to raise quick cash and go public, especially because investors were pretty OK with investing in such experimental transactions. Full of enthusiasm, these companies’ investor presentations showed a clear path to production and stellar profits.
It’s obvious in retrospect, but the results often proved to be messy.
U.S.-based EV company Lordstown Motors is one such example. Today, the company filed for bankruptcy protection and sued its former part …
