Faraday Future joins the SPAC party, announcing plans to go public

Faraday Future FF91
Credit: Faraday Future

Faraday Future announced plans to go public through a reverse merger with a Special-purpose acquisition company (SPAC), becoming yet another electric vehicle (EV) company to do so in the last year.

The deal would see Faraday Future merge with Property Solutions Acquisition Corp. In an announcement Thursday, the company said the deal would be supported by a private investment of $775 million.

If you’re unfamiliar, an SPAC, or a “blank cheque company” is a shell company that raises money through an initial public offering (IPO) to buy an operating entity, usually within two years.

With the IPO, Faraday Future is expected to net $1 billion in gross proceeds.

Other EV automakers to go public, or announce plans to go public through a reverse merger include the likes of Nikola MotorsLordstown MotorsFiskerFaraday Future and XPeng Motors.

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Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca