SPACs Fueling Over US$38 Billion in IPO’s for Commercial Transportation

Special Purpose Acquisition Companies (SPACs) have been growing exponentially, annually over the last two years.  According to ABI Research, a global tech market advisory firm, more than US$38 billion in pro forma equity valuations were attributed to the commercial vehicle space. All those IPO’s focused on strategic technologies for last mile, automation, and/or electrification/alternative fuels.  

“Multiple manufacturers from Nikola to Proterra, Lordstown, Lion Electric, Hyzon Motors, Einride, and Plus require significant capital to enable full production, with investors ramping up SPAC’s and joining in bidding wars in some cases,” states Susan Beardslee, Freight Transportation, and Logistics Principal Analyst at ABI Research.

Companies like Electric Last Mile Solutions and Arrival have solutions that support the rapidly growing e-commerce delivery segment, with ABI Research expecting associated telematics hardware shipments to grow by 29% over the next five years.   Related SPACs in the supply chain industry are expected to reach a minimum of US$15.2 billion this year.

“Despite the excitement, investors need to approach with caution as celebrities enter the SPAC frenzy and some previously lauded SPACs have been investigated and/or have seen their values dip post IPO.  Continued focus on transportation, logistics, and the supply chain will bring new, exciting IPO’s although not all will take the SPAC path,” Beardslee says.

These findings are from ABI Research’s The Post-COVID-19 Supply Chain market update report. This report is part of the company’s Freight Transportation & Logistics research service, which includes research, data, and ABI Insights. Depicted in a PowerPoint format, the Market Update provides a snapshot into current and future market opportunities and threats for a specific technology as well as focusing on a selected key market and associated trends.