Tag: ipo

By on February 10, 2021

Rivian Automotive is seeking to go public in the fall and targeting a valuation of at least $50 billion, according to the latest reports. The all-electric startup company, supported by Amazon and the Ford Motor Company, has already amassed around $8 million from investors and was valued at $27.6 billion less than a month ago.

While we couldn’t possibly say what it’s actually worth, burgeoning EV manufacturers have performed incredibly well on the stock market lately. Rivian would almost assuredly see its valuation balloon to the targeted sum through an initial public offering. It already has a product line, 3,600 employees spread between the Midwest and California, some serious marketing under its belt, and a relatively strong relationship with a few of the world’s largest companies. We’ve seen more done with far less on Wall Street.  (Read More…)

By on October 30, 2020

Fisker Inc.

Despite having never manufactured a single production model, Fisker Inc. is a company reportedly worth billions. On Thursday, the prospective automaker indicated that it was ready to see how much more it could get via an announcement that it had officially completed its business combination Spartan Energy Acquisition Corp  a special purpose acquisition company  and was ready to be publicly traded.

Better call your broker.

Listen, if we could explain to you why technology firms with no product lineups or revenue sources are eligible to receive cash enemas from the stock market, we absolutely would. But the amount of mental gymnastics required to rationalize an answer has surpassed what your author can entertain without risking his own sanity. Special purpose acquisition companies (aka SPACs or “blank check” firms) have exploded in popularity and allowed dozens of businesses going public to rake it in via reverse-mergers this year. Whether it’s economic voodoo or sheer madness, it has become the status quo for IPOs seeking to raise insane amounts of money.

(Read More…)

By on October 6, 2020

Faraday Future FF 91 profile

Faraday Future is hoping to go public through a reverse merger, proving that the finances associated with electric vehicle startups rarely operate within the confines of reality. Founded by Chinese businessman Jia Yueting in April 2014, the company began making waves the following year when it announced a plan to invest over $1 billion a factory in Nevada (its first) and went on a massive hiring spree. With the help of millions in government tax incentives, the plan was to start building some of the world’s most advanced EVs by 2017.

But people were becoming suspicious as early as 2016, when questions were raised about where the money was coming from and how much was left. By year’s end, work on Faraday’s Nevada facility had been suspended indefinitely. Following a lightly-botched presentation of its future product in early 2017, more outlets began to report the company was quickly running out of money as it backed out of several more projects. Months later, an internal power struggle left founder Jia Yueting as the primary decision-maker. Faraday Future spent the next few years scrambling to repay its debts and scrounging for (mostly Chinese) investors that might get it closer to its ultimate goal of building cars.

(Read More…)

By on August 18, 2020

canoo

Canoo Holdings Ltd., creator of highly configurable electric vehicles built atop its proprietary “skateboard” platform, plans to merge with a blank-check firm in order to seek investor cash. If past examples of EV startups going public are any indication, Canoo will soon be valued at eleventy bazillion dollars, give or take a few bucks.

On Tuesday, the company announced a tie-up with Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, in order to get itself a listing on the Nasdaq. (Read More…)

By on July 13, 2020

Fisker Inc.

As predicted last week, Fisker Inc., the company created by Henrik Fisker that aims to introduce an ultra-eco electric crossover, the Ocean, in 2022, has announced plans to go public.

Again, as expected, Fisker made its move by merging with a blank check company backed by a private equity firm. (Read More…)

By on May 10, 2019

Ride-hailing company Uber approached its Thursday initial public offering with an abundance of caution, setting a lower-than-expected share price in a bid to avoid rival Lyft’s stock plunge.

When markets open Friday, Uber’s stock will be priced at $45, near the bottom of a previously stated range that topped out at $50. That puts Uber’s initial valuation at just over $82 billion. Amid controversy surrounding its business practices and growing uncertainty about the viability of huge ride-hailing firms, Uber hopes to raise $8.1 billion from its IPO. (Read More…)

By on March 29, 2019

Back in 2016, General Motors invested half a billion bucks in Lyft, the rideshare company bent on taking Uber to school. When the deal was made, the companies portrayed it as a long-term strategic alliance. Since then, investments have been made in Lyft by GM’s competitors (namely Ford), and GM has made investments in potential Lyft competitors like Cruise Automation. Pro tip: don’t try to draw this particular family tree.

Today, Lyft went public on the stock market, seeing an astounding open of $87.24 a share. As a gearhead, why should you care about this? Well, remember that investment GM made in the company? The General now owns 18.6 million shares, which now translates into a net value of over $1.5 billion.

In a company besieged by idling plants and layoffs, suddenly finding an extra billion-and-a-half bucks on the books is surely a big deal.

(Read More…)

By on September 10, 2018

After hiring financial advisors earlier this year, a move many believed was a precursor to an initial public offering (IPO), Volvo parent company Geely now claims the waters are too choppy to float any shares in the resurgent Swedish automaker.

First reported by the Financial Times this past weekend, the Chinese holding company says there’s too many uncertainties and headwinds in the industry right now. Thus, no Volvo stock for you. The biggest uncertainty is the one that’s keeping automakers on edge the world over. (Read More…)

By on November 20, 2017

New Tesla Roadster

Unless you were living under a rock or on the moon late last week, you know Tesla introduced not one but two concepts on Thursday night — a Class 8 semi truck and a kinda-sorta-maybe Roadster (is it a roadster or a targa? It’ll only cost you a quarter mil to find out).

Since then, many corners of the internet have been yammering about the feasibility of Tesla’s plans, not to mention the wisdom of taking eyes off the very important ball that is the Model 3 in favor of two models that likely won’t appear until the next decade.

(Read More…)

By on August 10, 2017

elio-otc-chart

The past year hasn’t been particularly kind to Elio Motors, the startup trying to launch an economical enclosed-tandem, front-wheel drive three-wheeler. The company seems to be no closer to starting production and in fact has shuttered most of their operations, including assembly of their production-validation prototypes, and laid off most of their staff, to concentrate on raising the money they need to start building trikes.

For a while Elio was flying high. They had over 60,000 reservations and a Reg A+ stock offering raised $16 million. That stock quadrupled in price and briefly gave the company a billion-dollar valuation. Then, starting late in 2016, a pattern started forming. Some kind of bad news for Elio would appear on folks’ screens, either another production delay, a SEC filing with ominous-sounding boilerplate, or local politicians in Louisiana, where Elio promised to start building vehicles in what was formerly a GM assembly plant in Shreveport, would start complaining about a lack of progress. The bad news would get amplified by Elio’s critics, and their over-the-counter stock price would take a hit. A year ago the OTC shares were pretty stable at around $20/share. Down from the high of $60, but still significantly above the initial offering price of $14/share. By the end of 2016, however, it had dropped to about $15/share and since then it’s had a series of drops to about $8, then $7 and most recently about $5/share. Elio seemed headed for penny-stock status, or worse.

(Read More…)

By on May 19, 2017

Aston Martin Logo Emblem

Rumors that Aston Martin is destined for an initial public offering, either eventually or imminently, have persisted ever since former parent Ford offloaded the British luxury marque in 2007.

The brand has come a long way since Ford dropped it off at the orphanage by expanding into new segments, spawning a sub-brand, and entering the non-automotive realms of merchandise and luxury speedboats. As its trajectory increasingly mirrors that of recently spun-off Ferrari, sources claim an IPO is right around the corner. (Read More…)

By on March 16, 2017

2018 Volvo XC60, Image: Volvo Cars

Volvo denies that it wants to return to publicly listed status, but a new round of fundraising has many believing the Swedish automaker is about to end its 20-year absence from the stock market.

According to the Financial Times, the Geely-owned company hopes to raise about $500 million from a new batch of preference shares. Unlike the last time it held out its hat, this time Volvo wants Chinese buy-in. (Read More…)

By on December 20, 2016

volvo emblem logo grille

Volvo has only recently started exhuming itself from its post-recession sales hole and pushing its disastrous fling with Ford into the past. Turning a corner, the company has sold over 470,000 cars so far this year, aided largely by the successes of its XC90 SUV. Operating earnings having tripled in the first half of this year.

Now, the company has raised 5 billion Swedish crowns — $532 million — from the sale of newly-issued preference shares to a group of Swedish institutional investors.

All signs point to a confident company that wants back into the stock market. (Read More…)

By on October 21, 2015

 

Fiat Chrysler Automobiles chief Sergio Marchionne rang the opening bell Wednesday for Ferrari’s first day of trading on the New York Stock Exchange and shares of the supercar maker soared.

The stock, which was up as high as $60 per share, leveled off around $57 in mid-day trading.

“This is not really a car, it’s a unique expression of art and technology,” Marchionne told Bloomberg.

(Read More…)

By on October 20, 2015

 

According to The Truth About Cars’ stock exchange bureau chief, Ferrari is good and Tesla is bad today.*

Tesla shares have dropped 10 percent on news today that Consumer Reports would pull its “Recommended” rating from the Model S because of concerns about the car’s reliability. That’s bad.

Also, initial shares of supercar-maker Ferrari may be going for more than expected due to the stock’s appeal on office walls and potential value people may find in owning another Ferrari-branded item beyond overpriced shirts.  (Read More…)

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