Hope abounded in the world of electric vehicle startups in 2020 and 2021, when low interest rates showered the high-tech sector with cheap cash.

Special purpose acquisition companies (SPACs) proved instrumental in helping EV firms—and hundreds of other private companies—access investor funds while they were available, thanks to the deals’ reduced regulatory scrutiny and shortened timeline compared to traditional IPOs. By 2022, U.S. Big Law firms had facilitated the mergers of at least 15 SPACs with target companies in the EV sector.