QuantumScape, an electric-car battery supplier backed by Volkswagen (VWAGY) and Bill Gates, announced plans Thursday to go public via a merger with a blank check company.
QuantumScape will go public in the fourth quarter. It agreed to merge with Kensington Capital (KCAC). The electric-car stock will trade on the New York Stock Exchange under the ticker QS.
The enterprise value of the new company is $3.3 billion. QuantumScape will receive over $1 billion in cash and funding commitments, including financing led by the Volkswagen Group and Qatar Investment Authority, the Persian Gulf state’s sovereign wealth fund.
QuantumScape builds solid-state lithium-metal batteries, which some believe are safer than conventional liquid-state batteries.
Electric cars are still a niche market despite Tesla‘s (TSLA) popularity. But the market is growing and should hit 3.2 million vehicles sold in 2025 as emission rules become more stringent in Europe, China and other markets.
Kensington Capital shares soared 60% to 16.04 on the stock market today. Tesla fell 6.2% and Volkswagen edged up 0.7%.
Electric Car, AV Stocks Proliferate
More electric-car and self-driving car startups are going public via mergers with blank check companies, officially known as special purpose acquisition companies, or SPACs.
In August, Luminar Technologies, which makes lidar sensors for autonomous vehicles, announced it would go public via a merger with blank check company Gores Metropoulos (GMHI).
Gillian Rich on Twitter @IBD_GRich for investing news and more.
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