This is also powering the growth highway of several electric vehicle companies. Watch out for the likes of Fisker (FSR), Nikola (NKLA), Lordstown (RIDE), Lucid Motors (CCIV) and XL Fleet (XL), among others. SPACs have ensured these capital-heavy firms have ample money to fasten production and revenue.

One-year returns chart of some SPAC EVs in the United States

Data as of March 30, 2021 |  Source: Yahoo Finance

Market capitalization of major listed EV SPACs in the United States

Data as of March 28, 2021 |  Source: Yahoo Finance

However, when compared with EV giant Tesla (TSLA), these companies do have some catching up to do.

Market capitalization of major listed EV SPACs compared with EV giant Tesla

Data as of March 28, 2021 |  Source: Yahoo Finance

SPAC’s got your back

But, Tesla’s mind-boggling growth story (there are four Teslas sold among every five e-vehicles sold in the U.S.) and its sharp rise (the stock returned over 600% last year) has also boosted the prospects for other EVs. This is above the flush-with-liquidity situation that SPACs have brought to the fore for EVs. Here’s a look at few of their projections:

Fisker

The company aims to cross the $10-billion in revenues within three years of launching its sales and production. It took Google eight years to reach that milestone. And that’s the fastest ever for a U.S. startup so far.

Lucid Motors

Having launched its first car this year, it targets clocking sales of $22 billion by 2026. The company had merged with Churchill Capital Corp IV (CCIV) recently.

Lordstown Motors

Its early-2021 announcement of more than 100,000 reservations for its Endurance electric pickup was a big boost. It is aiming to start production by September.

Nikola 

It is targeting roll out of its first vehicles this year, on top of making significant progress in hydrogen fuel infrastructure.

Sudden brakes?

However, the ride can be bumpy for some of these companies.

• Performance check: Some investors are worried about the actual performance and deliverables of the company against its lofty-valued stock price.
• The long and the ‘short’ of it: Increased instances of short-seller reports by major institutions pose a threat to the stock in the immediate future.
• Chips are down: There’s a growing shortage of semiconductors globally, forcing companies to shut down production and delay rollouts. EVs, which heavily depend on chips, are likely to face some challenges too.

Plug and play?

EVs have grabbed the limelight and the onus is on them to boost production and sales to keep up with its popularity. While some companies may take months or years to roll out products and meet their ambitious revenue targets, investors are upbeat about the sector in the long term – governments are pushing for clean energy and transportation as well as widening electric infrastructure, among others. What’s more? Citizens and companies alike are being incentivized to switch to cleaner fuel sources and vehicles, which is likely to boost sales and, possibly, the shares of such firms ahead.