Electric truck company Lordstown Motors plans to merge with DiamondPeak (DPHC), entering the surge in electric car stocks to emerge through a merger with a blank check company as investors search for the next Tesla (TSLA). This leads to the surge in the stock value of DiamondPeak. The merged company will retain the name Lordstown Motors and trade on the Nasdaq under RIDE.
The deal involves a $500 million private investment in public equity, with $75 million investment from General Motors (GM) and institutional investors Fidelity, Wellington and BlackRock (BLK) are also investing in the electric vehicle startup. The transaction means a $1.6 billion equity value for Lordstown and companies anticipate that the deal to close in the fourth quarter.
Lordstown bought GM’s Lordstown assembly plant, a 6.2 million square foot facility capable of producing about 600,000 electric vehicles yearly last November. In June, Lordstown revealed a prototype Endurance pickup truck and has accepted more than 27,000 preorders symbolizing more than $1.4 billion of potential revenue from commercial fleet customers. Endurance electric truck is expected in the second half of 2021.
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Source: Investor’s Business Daily