Growth Opportunities for Global Special Purpose Acquisition Companies (SPACs) in Mobility

SPAC Deals of More than $16 Billion in 2021 Show SPAC Mergers Gaining Popularity among Start-ups Looking to Go Public Quicker and Easier

In 2020 and 2021 SPAC popularity exploded, grabbing the attention of investors, start-ups, technology companies, and regulators alike. The SPAC approach offers many start-ups, technology companies, and non-traditional automotive companies an alternative path to public market. Essentially blank check shell companies, SPACs are formed to list companies on stock exchanges or make them public without going through the traditional IPO process. Automotive/mobility-related SPACs are growing exponentially as this approach allows cash flow into the companies that need large capital to expand their operations and launch use-case-driven products in the market. The SPAC hype is quite relevant to automotive tech companies, with more than 40 SPACs announced in 2021 alone. This study provides an executive outlook of SPAC deals happening in the automotive industry.

The electric, autonomous, and urban air mobility (flying cars) segments experienced more SPAC formations than all other automotive industry verticals. Among them are Joby Aviation, Archer Aviation, Lilium, Blade Urban Air Mobility, Faraday Future, Fisker, Lucid Motors, Canoo, Polestar, and REE.

Research Highlights

• Analyze and understand SPACs, the SPAC structure, and the various processes involved in SPAC deals
• Deep dive into the evolution of SPACs and the time frame and life cycle of the SPAC process
• Identify how the SPAC process differs from the traditional IPO process, the regulations involved, and the challenges and growth factors for SPACs in the mobility market
• Provide a strategic overview of the SPAC process, with the intent of identifying and understanding the key stakeholders, segments, regions, and companies driving the innovations through this alternate IPO concept
• Highlight the evolution of SPAC in automotive
• Deep dive into the key operational model of SPAC, with a specific focus on its automotive regulations and methodology
• Provide an overview of top SPAC mergers and their transaction highlights

Key Issues Addressed

• What is the SPAC concept and why SPAC is needed in automotive?
• What are the advantages and disadvantages of SPAC?
• Which are the key growth segments in SPAC?
• What strategies are possible for automotive companies seeking long-term SPAC investment?
• What are the future opportunities in SPAC?