Another EV Company with no sales. No SPAC? No problem.

Dozens of the largest US law firms have banded together to defend special purpose acquisition companies following a series of lawsuits from two professors that question whether some of the lucrative blank-cheque companies are legal.

In an unusual statement published on Friday, 49 law firms pushed back on allegations that some Spacs are effectively operating as investment companies without registering as such, rebutting one of the key arguments put forward by law professors Robert Jackson and John Morley

The law firms signing on to the statement declared that Spacs should remain outside the reach of the ‘40 Act. “The undersigned law firms view the assertion that Spacs are investment companies as without factual or legal basis,” their statement said.

Several lawyers have expressed concerns that a ruling in Jackson and Morley’s favour would deal a blow to the Spac market, which has been a valuable source of fees for law firms.

Electric vehicle maker Rivian said it has confidentially filed paperwork with regulators for an initial public offering, setting the stage for a blockbuster year-end market debut as it looks to tap into a red-hot IPO market in the U.S.

Rivian, which counts Amazon.com Inc, Soros Fund Management and BlackRock among its major investors, will seek a valuation of around $70-80 billion at the time of its initial public offering, two sources familiar with the matter told Reuters on Friday.

At that valuation, Rivian would have a bigger market capitalization than General Motors Co, the largest U.S. automaker. But it would still be dwarfed by Tesla Inc, which boasts of a market cap of nearly $700 billion and is currently planning to build a pickup truck that would compete with Rivian's own version.

…

The company is one of the most well-funded startups in the United States. It raised $10.5 billion since the start of 2019, including $2.5 billion in July in a round led by Amazon and Ford Motor Co.

…

Rivian is looking to start production of an electric pick-up and an SUV this year.

Rivian's filing comes as automakers are racing to develop electric vehicles(EVs) as China, Europe and other countries and regions mandate lower carbon emissions.

…

Rivian is currently pursuing a two-track strategy: building electric delivery vans for Amazon, while developing an electric pickup and SUV brand aimed at affluent individuals.

Amazon has ordered 100,000 of Rivian's electric delivery vans as part of the e-commerce giant's broader effort to cut its carbon footprint.

This year, however, has not been without challenges for Rivian, as CEO Scaringe in July told customers the pandemic had delayed the launch of its vehicles.

Apart from Rivian, a slew of fast-growing EV startups have taken advantage of the capital markets boom in the past 12 months, especially with the rise of special purpose acquisition companies (SPACs).

The likes of Lucid Motors (LCID: $21.03), Nikola Corp (NKLA: $10.13), Fisker Inc (FSR: $14.04) and Lordstown Motors Corp (RIDE: $6.48), have all chosen to merge with blank check firms to go public.