It’s been a busy year for electric vehicle (EV) IPOs despite the fact that many EV stocks haven’t actually been using them!
Instead of an IPO — initial public offering — many electric carmakers are opting to use another process entirely to make their stock market debuts. The “reverse merger” was used instead of an IPO by electric truck maker Nikola (NASDAQ:NKLA) and electric drivetrain manufacturer Hyliion, among many others.
Here are the top three stock market debuts that electric car enthusiasts should keep on their radar screens.
IPO vs. SPAC
First, investors need to know how these reverse mergers with special purpose acquisition companies (SPACs) differ from classic IPOs. The end result is pretty much the same: The public can buy shares in a formerly private (or otherwise non-public) company for the first time on a stock exchange. In fact, some consider these reverse