Breakingviews - Super-car SPAC tests EV hype’s reset expectations

📆 5/12/2022 2:00 AM
📰 Breakingviews

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A Chinese super-car SPAC will test the reset expectations for electric vehicles. Investors were already beginning to question the rosy production and sales assumptions of upstarts from Nikola to Lordstown Motors before Russia’s invasion of Ukraine further snarled supply chains. Shares in Rivian Automotive , backed by Amazon and Ford Motor , are now 87% below their November high. The agreed $1.7 billion merger of CH-Auto, one of China’s very first battery-powered ventures, with a special-purpose acquisition company looks a prime target for even worse punishment.

- Chinese electric vehicle company CH-Auto Technology is to go public by merging with U.S. blank-cheque firm Mountain Crest Acquisition Corp. IV in a deal valued at nearly $1.7 billion, including $460 million of net debt, the two companies said on May 2.

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