Lucy Nicholson/Reuters
- EV startup Faraday Future is looking to go public via a merger with a SPAC, Bloomberg reported.
- Property Solutions Acquisition Corp is in talks with Faraday to bring the EV maker public at a valuation of about $3 billion, according to Bloomberg.
- Property Solutions traded up as much as 21% following the report.
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The SPAC craze has continued into 2021 as electric vehicle startup Faraday Future looks to go public via a merger with Property Solutions Acquisition Corp, according to a report from Bloomberg.
Talks between the two companies are ongoing and a potential deal could value Faraday Futures at around $3 billion, Bloomberg reported, adding that a deal could raise $400 million in proceeds for Faraday.
Shares of Property Solutions traded up as much as 21% following the report.
Faraday Futures was founded in 2014 and would be one of many electric vehicle startups to go public via SPAC, with Nikola Corp and Fisker Inc merging with “blank-check” companies last year. All in, 219 SPACs raised $73 billion in 2020.
The company was cofounded and led by its CEO, Jia Yueting, until late 2019. Yueting filed for bankruptcy in October of 2019 after accumulating more than $6 billion in debt. Yueting is no longer a majority investor in the company.
Faraday Future is now helmed by Carsten Breitfeld. The company is working on the development and production of its flagship model, the FF 91.
Investor enthusiasm for electric vehicle manufacturers has continued into 2021, with outsized valuations being assigned to names like Tesla and Nio.
Nio soared as much as 14% on Monday following the debut of its new ET7 model. The company also announced a partnership with Nvidia to develop autonomous driving capabilities.
