Prudent spending: A Rivian electric pickup truck at its service centre in San Francisco. EV companies are taking a balanced and disciplined approach in allocating for capital as it faces difficult times in finding cash to actually produce vehicles. — AFP
NEW YORK: Two years into the special-purpose acquisition company (SPAC) merger boom for electric-vehicle (EV) startups, companies are having a tough time finding cash to actually produce cars.
First Lordstown Motors Corp said it would back off investing in the tools to build its electric trucks until capital markets loosen up. Two days later, EV startup Canoo Inc issued a going concern notice to alert investors warning that it could run out of cash.
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