Electric-vehicle maker Canoo has announced it is going public via a reverse merger. It has a $10 share price and $2.4 billion valuation.
Canoo will be combining with Hennessy Capital Acquisition, a special purpose acquisition company, or SPAC. A SPAC, also known as a blank check company, is a company that doesn't have any actual day-to-day operations, but plans to raise money through an initial public offering so it can make acquisitions.
Canoo will list on the Nasdaq under the ticker symbol CNOO.
So what is Canoo?
The Los Angeles-based company designs electric vehicles that it says are built for cities. The company calls its design a “lifestyle vehicle.” Notably, no vehicles have actually been delivered yet.
Canoo says it has “designed the world's flattest modular skateboard platform that allows it to reimagine EV design, maximize usable interior space and support a wide range of vehicle applications.”
Canoo isn’t the first electric vehicle to go public in 2020 via a SPAC. Fisker went public through a merger with an Apollo Global Management-backed firm; Fisker is a luxury vehicle maker that’s working to bring plug-in hybrid electric cars to market. Rivian -- an electric truck maker that may be the first company to bring an all-electric pickup to market -- also went public in 2020.
All are prospective competitors to Tesla (TSLA) - Get Report. Meanwhile, Tesla shares inched higher into record territory on Monday after Wedbush Securities analyst Daniel Ives raised his one-year price target on the electric car and battery maker, citing what he sees as ongoing demand for Tesla cars in China.
Tesla is currently up 3.6% today to 1,901.80.