The world’s giant IT Company Google took 8 years to reach at USD 10 billion in the sale; it was the fastest U.S. startup. At present SPAC frenzy, a group of electric-vehicle companies is trying to beat this record in next upcoming years.
The most ambitious ones include luxury-car manufacturer Faraday Future, U.K.-based electric-van and bus manufacturer Arrival Group, and automaker Fisker Inc. Each has revealed plans to cross the $ 10 billion revenue mark within three years of starting sales and production.
According to WSJ analysis of data provided by a research firm Morningstar Inc., Alphabet Inc.’s Google has suppressed the revenue for USD 10 billion in 8 years and Uber Technologies Inc. crossed this mark in 9 years. And then Facebook Inc. and Tesla Inc. an automaker have reached this revenue of USD 10 billion in 11 years.
Two more companies, Ree Automotive Ltd. and Archer Aviation Inc., Israel-based electric vehicle component supplier, are planning to cross the revenue market of USD 10 billion in seven years, both companies intend to build a vehicle like an electric helicopter. Both companies have completed the list or are in the process of going public by merging with special-purpose acquisition companies, or SPACs.
Backers say the doors should open for a brand new one, away from gas-powered cars. Investors say there is also great enthusiasm due to the large-capitalization of electric vehicle maker Tesla at $ 665 billion. While its stock has fallen in recent months, Tesla shares have risen more than eight times in 2020.
Startups hoping to replicate Tesla’s success have been opting for SPACs – a faster alternative to the traditional initial public offering, with lax regulatory requirements – and releasing charts to investors showing how their plans compare to Tesla Calls for speeding up. Those estimates, which strongly discourage IPOs, are another important factor in how investors value emerging companies.
Mr. Molchanov said, even after governments around the world push consumers away from gasoline-powered cars, there is a wave of new electric cars that could overwhelm consumers. Further, he added, “I think there is too much optimism about demand”.
Los Angeles-based Fisker spokesman Simon Sporley said, the company’s plan to rely on third-party manufacturers to manufacture its cars will allow it to increase manufacturing far faster than Tesla, while its initial vehicle is more targeted to the mass market.