Reverse merger, SPAC, TSLA – Observations around recent financial activity of mobility firms.

There is a lot of activity, talk, and maybe hype around SPAC, reverse merger, and in particular EV companies going public through that route at the moment. But what is behind this, how does it work, and what is the broader picture here?

This month’s video discusses the definition, process, and history of reverse mergers through a SPAC (Special Purpose Acquisition Company) and suggests that this might need to be seen in context of Tesla’s unprecedented and apparently unstoppable stock rally. While newcomer EV companies might aim for additional funding opportunities, there could also be an opportunity in becoming part of the frenzy that seems to be currently going on at the stock market related to electric mobility.

What do you think? What is happening here and am I missing anything?

Disclaimer: this is not a financial or investment advice. It is the observation of a layperson and solely intended for informational purposes.