California-based Fisker is one of a growing group of speculative electric vehicle start-ups that have gone public through deals with PSPCs, which have become a popular way to raise funds on Wall Street because they have a more streamlined regulatory process than traditional initial public offerings.
According to Goldman Sachs, SPAC stocks typically get a first hit after the deal is announced, but tend to underperform the market as a whole. Stock prices of Lordstown Motors, another electric vehicle company that went public through a SPAC, initially debuted on Nasdaq on Monday, but were down 28.3% for the week.
The car start-up was founded by Henrik Fisker, a famous car designer and executive whose former green car maker Fisker Automotive filed for bankruptcy in 2013. Fisker is credited with designing the BMW Z8 and the ‘Aston Martin DB9.