EV Startups Confronting Setbacks
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Arrival, which along with Nikola went public by merging with a special purpose acquisition company, called off plans to combine with another SPAC. The startup announced late July 3 that it had terminated an agreement with Kensington Capital Acquisition Corp. V and will pursue other fundraising opportunities.
The setbacks for Nikola and Arrival follow Lordstown Motor Corp.’s filing for bankruptcy protection last week after a falling-out with production partner Foxconn Technology Group. Nikola and Lordstown came up well short of their production goals for last year, while Arrival scrapped plans to make vans in the U.K.
Nikola and Arrival both are trying to restructure their businesses to focus on the U.S. market. Nikola handed over full control of a German joint venture to partner Iveco Group NV last week, and Arrival is seeking funds to build out a factory in North Carolina.
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