The SPAC market is regaining momentum, with sponsors taking 144 vehicles public in 2025 and 117 in the first half of 2026, as some VC-backed companies in quantum computing, energy, and AI infrastructure turn to SPACs amid challenging traditional exit routes. However, the landscape has shifted: new SEC rules now bar issuers from touting forward-looking growth projections, and target company executives face personal liability for false financial statements for the first time. Sponsor incentives, which previously rewarded deal closure regardless of quality, are under scrutiny after high-profile busts like Lucid Motors, whose stock is down over 90% from early backer prices. While some previous market advantages are gone, the ongoing liquidity drought is making SPACs attractive again, though it remains unclear if retail investor outcomes will improve this cycle.
Lucid Group IncArticle mentions Lucid Motors as a high-profile SPAC bust with stock down over 90%, illustrating risks of SPACs under new SEC rules.