E.Go could go public via Spac

The German electric car manufacturer is apparently in talks about a possible IPO via a blank-check company. It would be the culmination of a turbulent few months.

Last year, the German electric car hopeful E.Go had to be rescued from insolvency, but now it could be heading for the trading floor at a rapid pace. As reported by the news agency Bloomberg, the Aachen-based electric car manufacturer is in talks to go public via Spac and thus achieve a short-term valuation of around two billion euros. Ali Vezvaei, CEO of E.Go, told Bloomberg that the plan could possibly be implemented in the next twelve months.

E.Go was originally founded by Günther Schuh, a university professor in Aachen. He had previously sold his Streetscooters, electric delivery vans, to Deutsche Post in order to launch the new electric car start-up. But there were problems. Last year, production in Aachen had to be halted due to the threat of insolvency. It was only with the help of Dutch private equity firm ND Industrial Investments that the worst was averted and production was restarted. Since then, the company has returned to growth, has signed contracts to build cars in Mexico and Greece and also wants to expand into Asia.

The IPO could now pump fresh money into the start-up, which plans to produce around 300,000 new vehicles over the next five years. The current model, the E.Go Life, currently has a range of 125 kilometers and is expected to cost around 26,000 euros. E.Go is not the only start-up from the e-car sector that wants to make it big with Spac. According to Bloomberg, Polestar is also in negotiations with a Spac