Yet another EV company to go public through reverse merger

Image via Canoo

The latest craze in the electric vehicle (EV) market appears to be for companies that has yet to manufacture and sell a single EV to go public through a reverse merger at a ridiculous valuation.

In recent weeks and months we’ve seen similar events unfolding for the likes of Nikola Motors, Lordstown Motors, with a valuation of $1.6 billion, and Fisker pegged at $2.9 billion.

Enter stage left, Canoo, another EV startup that announced on Tuesday it will be merging with Hennessy Capital Acquisition Corp IV to go public and be listed on NASDAQ (CNOO) at a valuation of $2.4 billion.

If you haven’t heard of Canoo, you’re likely not alone. Founded in 2017 by two former employees of Faraday Future, they hope to begin manufacturing their first EV in 2021, a VW microbus-style van that will target consumers in major urban markets.

When it does hit the streets, you won’t be able to buy it though. Rather, it will only be available through a month-to-month subscription model. Canoo members will pay a single monthly fee which will include their own vehicle, maintenance, warranty, registration and access to insurance, and vehicle charging.

The EV will leverage the company’s flat skateboard design to maximize cargo and interior space. All future vehicles from Canoo will incorporate the same skateboard, with other vehicles having different cabins, or “top hats” to make them unique.

The company also has plans to release a delivery vehicle in 2023 using the same skateboard platform.

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