On Monday, Fisker—a luxury vehicle maker that’s working to bring plug-in hybrid electric cars to market—announced it is expecting to go public through a merger with an Apollo Global Management-backed firm called Spartan Energy Acquisition.
The deal values Fisker at $2.9 billion.
Fisker is working on an electric luxury SUV called the Fisker Ocean which it hopes to bring into production in late 2022, according to CNBC.
Not surprisingly, a major competitor to Fisker is Elon Musk's Tesla, which has been on a tear recently.
In a landmark moment, Tesla’s stock raced towards—and hit—the $1,000 mark on June 10, 2020. In January 2019, Tesla’s stock was just $212 a share, meaning it had a monumental increase of 371% in one year.
Tesla’s stock has been largely driven by investors' faith in the company’s dominant position in the electric vehicle industry.
In late May 2020, Morgan Stanley analyst Katy Huberty compared Tesla to Apple.
"View Tesla in a way they viewed Apple 20 years ago: a company that thinks differently, that is incredibly innovative in a category that needs a spurt of innovation. That creates investor interest. If there’s a path to profitability and reason to believe scale will continue to increase, then tech investors tend to not care as much about valuation and/or are will to look multiple years into the future when scale and profitability will support current valuation," Huberty wrote in a note to clients.