EV startup Fisker will go public to fund Ocean production in 2022

Fisker, the dead and reborn electric vehicle startup, will soon head to the New York Stock Exchange.

The company announced Monday it has agreed to a merger with Spartan Energy Acquisition to list Fisker on the NYSE to fund production of the automaker's first car, the Ocean. Essentially, Spartan and its affiliate sponsors will raise money for Fisker via an initial public offering. Spartan can then take its cash and purchase an operating company while everyone benefits, ideally.

Fisker said the business agreement creates a company valued at $2.9 billion and the IPO share price will be $10. In recent months, alternative-fuel startups have become a hot commodity on Wall Street, likely as investors bet on various companies emerging as the next Tesla . The banner EV maker's stock is up nearly 600% in the past year, and as of this writing, a single share hovers around $1,720. Nikola, a startup focused on hydrogen-electric semi trucks , also found help in a company similar to Spartan and launched its own IPO last month. The company's stock has risen 60% since then. Fisker clearly hopes it can cash in on the hype.

Fisker Ocean waves hello and shows off its studly form

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The funds raised will help send the Ocean electric SUV to production, and the company plans to price it below the Tesla Model 3. Before the $7,500 federal tax credit, buyers will pay $37,499, so the tax credit knocks the price down to $29,999. Fisker will also push a flexible lease program with no long-term contracts. The lease will cost $379 per month with a $2,999 down payment.

Of note, Monday's announcement also quietly confirmed a production delay for the Ocean SUV. Fisker had previously been all-in on a late 2021 manufacturing start, but now, the company will start production in late 2022. With a targeted range of 250-300 miles of range, Fisker had better hope there aren't any major battery breakthroughs in two years' time. Tesla's Model Y already returns an estimated 315 miles of range, and numerous companies say they're close to achieving game-changing battery technology.

Watch this: Fisker Ocean electric SUV will be cheaper Tesla Model 3 at $37,499

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