E.Go could go public via Spac

The German electric car maker is apparently in talks about a possible IPO by blank check company. It would be the culmination of a few turbulent months for the time being.

Last year, German electric car hopeful E.Go had to be rescued from insolvency, but now it could be headed for the stock market in a hurry. According to news agency Bloomberg, the Aachen-based electric carmaker is in talks to go public via Spac, which would give it a valuation of around two billion euros in the short term. Ali Vezvaei, a board member at E.Go, told Bloomberg the plan could possibly be pulled off in the next 12 months.

Originally, Günther Schuh, a university professor in Aachen, Germany, founded E.Go. He had already sold his Streetscooters, electric delivery vans, to Deutsche Post before launching the new electric car start-up. But there were problems. Last year, production in Aachen had to stop because insolvency was imminent. It was only with the help of Dutch private equity firm ND Industrial Investments that the worst was averted and production was revived. Since then, the company has returned to growth, has signed contracts to build the cars in Mexico and Greece and also wants to go to Asia.

The IPO could now pump fresh money into the start-up, which aims 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 isn't the only e-car startup looking to make it big via Spac. According to Bloomberg, Polestar is also in negotiations with a Spac