Chinese electric vehicle (EV) start-up Byton in talks to go public via merger with special purpose acquisition company (SPAC), Reuters reported Monday.
Byton is in talks with several SPACs and potential investors over the plan, which could see the company go public later this year, according to the report.
The news follows last month’s report that the Hon Hai Precision Industry (OTC: HNHPF), better known as Foxconn, agreed to invest in Byton and help put its vehicles into production. Bloomberg reported that Foxconn plans to invest around $ 200 million in the struggling startup, and that production of Byton’s M-Byte electric SUV could begin next year.
Other Byton investors include the state-owned automaker FAW Group and Chinese battery giant Contemporary Amperex technology, better known as CATL.
Byton, founded in 2017 by the former Bmw and Nissan engine executives, was first seen as a potential rival You’re here (NASDAQ: TSLA). But the company has been struggling with cash flow since 2019, when co-founder Carsten Breitfeld left to become CEO of rival electric vehicle start-up, Faraday Future.
Byton had built a factory in Nanjing, eastern China, but construction was put on hold last summer as part of a company restructuring. Foxconn agreed to help revive this plan and help Byton build a supply chain that would lower its manufacturing costs.
The Reuters report did not name the PSPCs that held talks with Byton.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.