The electric vehicle SPAC frenzy that swept through 2020 and 2021 has come crashing down, dashing hopes of investors, Zacks reports.
During this period, SPACs turned out to be the most popular course of action for EV startups to go public, helping them to avoid the complexity and strenuous paperwork associated with the traditional IPO. But, in 2022, EV SPAC deals slowed as investors were let down by the missed deadlines, unmet milestones and meager profits of the startups.
SEC investigations into some of the deals have made it difficult for these EV startups to secure funding, resulting in SPAC financing losing its allure. Read more.
