Ford Authority

Electric Vehicle SPACS Falter As 2022 Ford F-150 Lightning, Rival EVs Debut

Starting an automotive manufacturing company from the ground up is obviously not an easy task. Regardless, a number of startup EV makers have popped up in recent years. While some are still seemingly in good shape (Rivian, Lucid Motors), others are teetering on the verge of bankruptcy (Lordstown Motors) or mired in controversy (Nikola). However, the recent reveal of vehicles like the 2022 Ford F-150 Lightning is making life difficult for electric vehicle SPACs, according to a new report from CNBC.

A number of EV startups went public through SPAC (special purpose acquisition company or blank-check company) deals recently, including Lordstown, Canoo, Nikola, and Electric Last Mile. However, it seems that these hyped-up companies are starting to wear on investors following some early excitement and heavy trading, particularly as none of them have produced an actual, saleable vehicle yet.

SPAC deals have become increasingly attractive in recent years, as they present an alternative to a traditional initial public offering (IPO) that doesn’t require a company to have any actual operations or real assets other than cash. The idea is that a company can raise funds just like an IPO, then merge with a privately-owned company to go public.

The luster of electric vehicle SPACs is beginning to wear off, however, particularly amid a number of Securities and Exchange Commission (SEC) investigations and inquiries into companies like Lordstown and Nikola in recent months. As a result, the CNBC SPAC 50 Index is down 4 percent year to date, while the CNBC SPAC Post Deal Index has fallen 10 percent. But as we saw specifically with Lordstown and its Endurance EV pickup, the reveal of electric vehicles from established automakers is also having a big impact on unproven startups.

The F-150 Lightning, for example, secured 100,000 reservations in just three weeks, while the E-Transit and Ford Mustang Mach-E have enjoyed heavy consumer interest as well, as have a number of future General Motors EV products like the GMC Hummer EV and Cadillac Lyriq. But both of these automakers have a demonstrated history of bringing vehicles to market – something that startups may or may not be able to do.

We’ll have more on the state of the EV market soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

Subscribe to Ford Authority

For around-the-clock Ford news coverage

We'll send you one email per day with the latest Ford updates. It's totally free.


  1. Lee

    What’s that noise? Could it be the death ☠️💀 bell 🔔🎐 for EV’s? Hmm 😏🤔…

    1. Mike says..

      No… but I wish! AS a human dinosaur, our time on earth is very limited…. like most of you who take time to comment on this increasingly pointless blog. Sorry Brett…. its not personal, its your very narrow (minded) audience and tolerance for stupid comments.

      1. Lee

        SHEESH 🙄😬, there’s the pot calling the kettle black!

  2. Blather

    EV is much EASIER to build. I don’t think they are going away.

  3. Dave Mathers

    A lot of those ‘start ups’ were hoping to get funded via government grants. That’s a VERY flawed business model.

  4. Josh Withe

    Unlike the majority of these start ups with a vehicle that is all renders and artists sketching, Ford already sells lots of vehicles every day. Even if this whole EV thing never really catches on because of grid limitations or other unforeseen circumstances, Ford will continue to be in business one way or another, and honor their warranty and parts support obligations.
    I have a hard time believing all of these start up EV makers will weather their production hurdles, first recalls, or economic stumbles that come at unhelpful times.
    Tesla is more of an exception to the rule, than a roadmap to follow, they even started with someone else making the vehicle they put batteries in.


Leave a comment