The Daily Dish (4/21/21)
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President Joe Biden said on Tuesday the United States must ramp up production of electric vehicles to catch up with and then surpass China after he virtually toured an electric bus and battery manufacturing plant on Tuesday.
Biden has proposed spending $174 billion to boost the production and sale of zero-emission buses and cars and increase EV charging stations, including $100 billion in consumer rebates.
Biden this week toured a facility of U.S. electric bus manufacturer Proterra $ACTC in South Carolina.
Of the $174 billion, Biden has proposed spending $20 billion to electrify at least 20% of school buses and $25 billion to electrify some transit vehicles as part of his $2.3 trillion infrastructure and jobs plan.
The White House’s push to electrify vehicles comes as China has dominated the world electric bus market.
The United States has over 475,000 school buses and 65,000 transit buses and most run on diesel fuel, the White House said.
Biden has made a “Commitment that all American-made buses would be zero-emission by 2030,” the White House said, but it is not clear how that will be accomplished.
Nikola Corp. $NKLA shares fell Tuesday to the lowest since December 2018, accelerating a selloff that has now erased all their gains since the electric-vehicle startup went public via blank-check company last year.Legendary investor Bill Miller says the window is closing on the SPAC market, but singles out 2 names that remain attractiveLegendary investor Bill Miller says the window is closing on the SPAC market, but singles out 2 names that remain attractive
The electric-truck maker – once briefly more valuable than Ford Motor Co. – closed down 6.2% at $9.65 in New York, bringing it below the $10 level at which VectoIQ Acquisition Corp., the special-purpose acquisition company that acquired Nikola, debuted in June 2018.
Nikola’s shares have lost their luster after much fanfare since it closed its reverse merger with VectoIQ in June 2020.
Now traditional automakers are making a comeback as they vow to rapidly expand their presence in the EV market, shrinking the potential market share of startups like Nikola.
Last week, shares of another electric truck startup, Lordstown Motors Corp., also fell below the $10 level, the price at which the blank-check company it merged with debuted in April 2019.
The ValueAct Spring fund, which was another early investor in Nikola, moved to Inclusive Capital Partners in the summer of 2020.
The Spring Fund was led by Jeff Ubben, who remains invested in Nikola though Inclusive.
Legendary investor Bill Miller says the window is closing on the SPAC market, but singles out 2 names that remain attractive
Legendary investor Bill Miller thinks the SPAC craze may be nearing the end.
The billionaire pointed to some SPACs that now have more reasonable valuations, such as Desktop Metal $DM, a 3D metal printing technology provider that famed investor Chamath Palihapitiya also backed.
Miller also said he likes Metromile $MILE, a US-based pay-per-mile insurance technology that merged with SPAC Insu Acquisition in February.
“That’s the name we think you could make multiple times your money in the next three or four years,” he told CNBC. SPACs, shell companies seeking to merge with private companies with the intention of taking them public, have boomed.
In 2020, a total of 248 SPACs raised $83.3 billion according to SPAC Analytics.
Paul Munter, the acting chief accountant at the Securities and Exchange Commission, in April cautioned SPAC investors about the risks and governance issues that come with raising capital through blank check companies.
In March, the SEC has begun an inquiry into the SPAC craze, seeking voluntary information from market participants.