 Canoo Holdings Ltd, an electric vehicle company, announced Tuesday it was going public later in 2020 at a valuation of 2.4 billion and will commence vehicle deliveries by 2020, Reuters reported.What Happened The California-based startup already has a partnership with South Koreas Hyundai Motor Co OTC: HYMTF and will merge itself with a special purpose acquisition company to go public, according to Reuters.The agreement with Hennessy Capital Acquisition Corp IV NASDAQ: HCAC is likely to be concluded by the fourth quarter and the new entity would reportedly be called Canoo Inc, whose shares will trade on the Nasdaq Stock Market with the ticker CNOO.The deal will raise 607 million, which includes additional funds from BlackRock Inc NYSE: BLK, as well as other investors. Hennessy raised 300 million in its IPO March last year.The reverse-merger announcement takes place in the backdrop of the rising popularity of EVs and burgeoning valuation of market leader Tesla Inc NASDAQ: TSLA, whose shares have returned 352 year-till-date.Why It Matters Canoos low-rise platform can be used to make a variety of EV vehicles, according to Reuters. The first of its vehicles would be a seven-seat van available in 2022, after which the company plans to release a small commercial delivery vehicle in 2023 and a sports sedan in 2025, CEO Ulrich Kranz said.The executive disclosed the companys plans to expand to China and sell its vehicles through a subscription model instead of through traditional dealerships. The EV maker projected revenue in 2024 to be 1.43 billion and profit at 188 million at a conference call. The SPAC model of going public is gaining traction among EV companies. In June, Nikola Corporation NASDAQ: NKLA went public after merging with VectoIQ Acquisition.Fisker Inc has also said it plans to go public via a merger with blank check company Spartan Energy NYSE: SPAQ in October.Self-driving vehicle radar firm Velodyne Lidar Inc. announced last month it was similarly going public through a merger with Graf Industrial Corp NYSE: GRAF.Price Action Hennessy shares closed nearly 1.8 lower at 10.49 on Tuesday.See more from Benzinga Apple Revamps Music Radio Service With A Rebranded Beats 1, And Two New Stations SoftBanks .9B US Stock Bets Include Amazon, Netflix, Google, Tesla Tesla In A Simmering Discord With Chinese E-commerce Giant Pinduoduo Over Discounted Model 3 SedansC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 