Fisker car is going public via merger

Spartan Energy (SPAQ), a blank check company backed by private equity firm Apollo Global Management (APO), announced a deal for the Fisker car company, which makes electric vehicles.

Fisker plans to go public via a merger with Spartan Energy in a deal valuing the electric vehicle startup at $2.9 billion, the companies said Monday. In addition, the companies expect to close the deal in Q4 this year. Reuters first reported talks between the companies Thursday.

Meanwhile, the proposed deal provides funding needed for the first Fisker car, the Ocean luxury electric SUV, to reach the market in 2022.

Henrik Fisker launched the eponymous company in 2016 after an earlier automotive venture went bankrupt, costing taxpayers $139 million.

The now-defunct business produced a luxury plug-in hybrid electric Fisker car. But the company discontinued the car, called Karma, due to poor sales.

Soon-To-Be Fisker Car Stock
Shares of Spartan Energy reversed sharply lower to close down 9.8% at 15.06 on the stock market today after surging more than 17% earlier. Tesla (TSLA) also caused whiplash and fell 3.1% after jumping 11% earlier on reports it's dropping the price of its Model Y crossover Sunday. Tesla also canceled a low-end version of its newest electric vehicle Monday.

The Fisker car company is coming public in a hot market for electric cars. Nikola (NKLA) first attracted attention in June by going public through a sale to a blank check company, or special purpose acquisition company (SPAC).

Nikola's successful business model was quickly adopted by Hyliion, which agreed to merge with Tortoise Acquisition (SHLL). They will create a new company called Hyliion Holdings. And it will trade under the ticker "HYLN."

Blank check companies have been snapping up startups making electric cars as investors hunt for the next Tesla.

A SPAC or blank check company is a shell entity with no commercial operations, formed expressly to raise capital for buying an existing business. Investors bid up SPAC shares hoping to unlock value when the two companies merge.