EV Startup Arrival Gets Hope For Survival From US IRA Subsidies: Report
Portfolio Pulse from Lekha Gupta
EV startup Arrival expects its merger with Kensington Capital Acquisition Corp V and subsidies from the US Inflation Reduction Act (IRA) to drive business growth. The merger will provide Arrival with up to $283 million to build a factory in North Carolina for its XL van, which qualifies for IRA tax credits up to $40,000.
May 25, 2023 | 12:30 pm
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POSITIVE IMPACT
Arrival's merger with Kensington Capital and IRA subsidies are expected to drive business growth and fund the development of its XL van.
The merger with Kensington Capital provides Arrival with significant funding to build a factory for its XL van. Additionally, the IRA subsidies will make the van more attractive to customers, driving demand and potentially increasing Arrival's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Kensington Capital's merger with Arrival is expected to drive growth for both companies, as Arrival gains access to funding for its XL van development.
The merger with Arrival provides Kensington Capital with exposure to the growing EV market. As Arrival benefits from the funding and IRA subsidies, it is likely to drive growth for both companies, potentially increasing Kensington Capital's stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80