In a statement electric-vehicle maker Faraday Future stated, it will go public through a merger with blank-check firm Property Solutions Acquisition Corp in a deal that values the combined company at $3.4 billion. The deal marks the latest firm to take the SPAC route to enter the public market.

Los-Angeles-based Faraday joins a growing list of EV makers in a hot sector that includes Tesla Inc. The development comes in the wake of increased adoption of electric vehicles by consumers across the world.

Fisker Inc and Nikola Corp also went public through SPACs last year.

On Thursday, Faraday and Property Solutions stated, the deal is supported by a private investment worth $775 million and is expected to fetch Faraday Future $1 billion in gross proceeds.

SPACs have emerged as a popular way for firms seeking to go public to deal with less regulatory scrutiny and provide more certainty about valuation than traditional initial public offerings (IPO).

Faraday Future was founded in 2014 by former chief executive officer, Jia Yueting, who filed for bankruptcy in October 2019 and planned to turn over his stake to repay around $2 billion in personal debts. Yueting is now serving as the chief product and ecosystem officer at the company. 

The combined company will be listed on Nasdaq under the ticker symbol “FFIE”, said the companies.