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EV startup Phoenix Motor's ugly IPO

Illustration of a car with a battery-shaped license plate with electricity symbols on it

Illustration: Sarah Grillo/Axios

Call it spitting into the wind — or driving into the Lincoln Tunnel at 4pm on a Friday — but Phoenix Motor Cars plunged ahead with an IPO this week despite the obvious risks.

Why it matters: The EV startup's stock price (Nasdaq: PEV) this morning had plummeted roughly 50% since its debut 24 hours ago, the latest sign of just how rough it's gotten for public market fundraising.

The big picture: We've seen just 36 IPOs priced this year — a 78% drop from the same time last year, per data from Renaissance Capital.

  • Proceeds raised have collapsed 93% to just $3.9 billion so far this year.

Driving the news: Phoenix makes electric drive systems and is developing light- and medium-duty EVs.

  • The company Wednesday sought to raise $15.75 million, with an initial stock price of $7.50 per share.
  • As of Thursday morning, the price was hovering just above $4 per share.

👀 Yes, and: The startup had already sought to temper expectations, last month slashing its fundraising target from $150 million to $20 million.

Of note: Phoenix is owned by SPI Energy (Nasdaq: SPI).

  • The company had sold around 100 of its vehicles as of December.
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