As SPAC mania continues to branch into more areas of auto tech, autonomous vehicle developers are steering towards this alternative route to the public market.
Lidar (light detection and ranging) and autonomous vehicle technology is relatively early stage, but has huge growth potential over the next decade. Many companies are driving away with the trend and developing their own units, such as Tesla’s Autopilot AI and GM’s Cruise, or acquiring autonomous vehicle companies, such as Amazon with Zoox. Despite growing interest in the space, we have yet to see an autonomous vehicle developer complete a traditional IPO.
Why lidar firms pick SPACs
Traditional IPO investors are reluctant to award $1+ billion valuations to pre-commercial auto-tech developers, but SPAC shareholders have been willing to bet on longshots in the right space. And while IPOs can require a year or more of preparation, SPACs allow autonomous vehicle companies to take advantage of current conditions and list in a matter of months.
Three autonomous vehicle startups choose SPAC listings
After originally planning a traditional IPO, lidar technology startup Velodyne Lidar (VLDR) successfully completed its SPAC merger with Graf Industrial in September. While the stock has fallen since the de-SPAC, its $16 share price still represents a 60% gain from the SPAC’s $10 offer price, demonstrating that the SPAC route is a viable option for autonomous vehicle makers. Two more are set to follow in its tracks: lidar sensor and software developers Luminar Technologies, which is merging with Gores Metropoulos (GMHI), and Aeva, which is merging with InterPrivate Acquisition (IPV).
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Further reading on SPACs
The road less traveled: 14 auto-tech plays going public via SPAC
Updated: SPAC returns fall short of traditional IPO returns on average
