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Looking for the next Tesla to boost the electric car trading boom



(Bloomberg)-Wall Street’s obsession with electric vehicles is triggering a new round of public listings and helping cleantech companies build partnerships with powerful allies.

Proterra Inc., which produces electric buses and battery systems, said on Tuesday that it will go public through a special-purpose acquisition company ArcLight Clean Transition Corp., which is the latest in a wave of deals between automakers and SPACs. According to people familiar with the matter, Lucid Motors Inc. is negotiating public negotiations through one of Michael Klein’s blank cheque companies.

At the same time, Plug Power Inc. and Renault SA are forming a joint venture to manufacture hydrogen fuel trucks.

The valuation of electric car companies is soaring because investors are looking for the next Tesla company. Last week, Tesla̵

7;s market value reached a record $834 billion, surpassing Facebook Inc. Nikola Corp. and Lordstown Motors Corp. Plug have never reported annual profits in the past 20 years, and their value has increased from US$1.2 billion last year to US$29 billion.

Pavel Molchanov, an energy analyst at Raymond James & Associates, said: “This is a very hot sector, this is a hot sector.” “Battery technology is becoming more efficient, charging infrastructure Continuous development and proliferation, and there are more car models for buyers to choose from.”

Read more: EV-Tech company Proterra goes public through ArcLight SPAC

It’s not just Tesla that incentivizes investors to invest heavily in clean vehicles. Joe Biden’s victory in the US presidential election is expected to be a boon to the emission-free transportation industry. In the election campaign last summer, Biden at the time stated that the government would increase its support for plug-in vehicles as part of a broader effort to combat global warming.

Katie Bays, managing director of policy consulting firm FiscalNote Markets, said: “There is a strong global interest in clean transportation.” “Investment in clean transportation companies is not a collateral issue. It is very mainstream.

Xpeng Inc. received a US$2 billion credit line from Bank of China, and the ongoing CES (previously known as the “Consumer Electronics Show”) fueled the electric car boom. General Motors announced that electric car stocks were running on Tuesday. Win the market. It is planned to introduce electric commercial trucks.

Xpeng led the gains, with its American depositary receipts rising as much as 17%, followed by strong gains from Li Auto Inc., Nikola Corp. and Tesla Inc.

According to people familiar with the matter, the value of this private transaction could be as high as $15 billion. The electric car manufacturer backed by Saudi Arabia’s sovereign wealth fund is targeting the high-end market. Its CEO Peter Rawlinson (Peter Rawlinson) was previously Tesla’s chief engineer on the Model S sedan.

At the same time, as investor demand for electric vehicles heats up, Proterra is the latest electric vehicle manufacturer to go public through the merger of SPACs. Blank check companies such as ArcLight Clean have become the preferred way to raise funds. SPAC raised a record US$79.2 billion in 2020, making it one of the largest IPOs of the year. Nikola and Fisker Inc. also went public through SPAC transactions last year.

ArcLight Clean’s stock price soared 92%.

“This is indeed a turning point for the industry,” Proterra Chairman and CEO Jack Allen said in an interview. “Implementing SPAC allows us to go faster and can truly accelerate our investments in all three areas of business that are driving revenue growth today.”

See also: Renault, Plug Power Form Venture of hydrogen-powered transport vehicles

Plug Power’s joint venture with Renault is the latest large-scale transaction for the company based in Latham, New York. The company has spent decades trying to develop a niche market for hydrogen fuel cells that use electrochemical processes instead of combustion to generate electricity.

Last week, Plug announced an investment of US$1.5 billion from South Korea’s SK Group to promote the technology throughout Asia. When produced from renewable energy and used in fuel cells, hydrogen can provide energy without generating greenhouse gases, making it a potentially powerful weapon against climate change.

According to a statement on Tuesday, Plug and Renault will provide both vehicles and hydrogen refueling stations. Their goal is to start production at the existing plant in Renault, France by early 2022, and to produce tens of thousands of light commercial vehicles each year by 2030. Financial details were not disclosed.

“We have vehicles, services, and stations. This is everything to succeed,” Plue CEO Andy Marsh said in an interview.

(Added estimates in the fourth, eighth and ninth paragraphs.)

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