Elon Musk Tweets 'Caution' On SPACs As Tesla Rivals Go Public

A Forbes cover story called "How SPACS Became Wall Street Money Tree" highlights some of the negatives of the SPAC industry. Tesla Inc (NASDAQ: TSLA) CEO Elon Musk tweeted in response to the article.What Happened: The article from Forbes highlights some former SPACs like Waitr Holdings (NASDAQ: WTRH) and Multiplan Corporation (NYSE: MPLN) trading below $10 and other newer SPACs with red flags.> Caution strongly advised with SPACs> > -- Elon Musk (@elonmusk) November 19, 2020Why It's Important: Musk has over 40 million followers on Twitter. He is well respected by investors and has a cult-like following.There are a number of companies considered Tesla rivals that have or will go public via the SPAC route.Fisker Inc (NYSE: FSR) and Lordstown Motors (NASDAQ: RIDE) are building competing electric vehicles to Tesla.Hyliion Holdings Corp (NYSE: HYLN) and Nikola Corporation (NASDAQ: NKLA) are both working on electric and hydrogen-powered Class 8 trucks that would compete with the upcoming Tesla Semi.Related Link: Will The Real Elon Musk Please Stand Up: Another Twitter Bitcoin ScamCanoo, going public via Hennessey Capital Acquisition (NASDAQ: HCAC) will offer an electric vehicle subscription service.QuantumScape, going public via Kensington Acquisition Corp (NYSE: KCAC), Eos Energy Enterprises (NASDAQ: EOSE) and RMG Acquisition Corp (NYSE: RMG) target Romeo Power are all companies competing in the battery market with Tesla.See more from Benzinga * Click here for options trades from Benzinga * Exclusive: MP Materials CEO Talks Rare Earth Mining, Supporting Tesla, EV Companies * Tesla's S&P 500 Inclusion Could Move Elon Musk Up Billionaire Ladder(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  Liberty Media-backed SPAC aims to raise $500 mln in U.S. IPO

  Reuters
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  Liberty Media Corporation Launches SPAC: What Investors Should Know

  Benzinga

Carnival Borrowing Without Ships Suggests Mnuchin May Be Right

(Bloomberg) -- Hours after U.S. Treasury Secretary Steven Mnuchin called for emergency lending programs to be allowed to expire, corporate bond investors continued to flood Carnival Corp.’s bankers with more than $11 billion in orders for debt that comes with no collateral protection.For some, it was a sign that credit markets aren’t so fragile after all. After roughly $2 trillion of borrowing helped U.S. companies bolster their balance sheets with cash to weather the pandemic, investors have grown increasingly confident -- perhaps even complacent -- that the widespread corporate failures predicted by many earlier this year have largely been avoided. Granted, the Fed helped fuel nearly all of that debt issuance, and the investor demand supporting it.And even if the immediate lifeline of $580 billion in backstop money is returned by the Federal Reserve to the Treasury, traders are betting that markets will fare just fine, anticipating that the government will step in again if new signs of stress emerge.“The reality is that if things start getting crazy and spreads start widening, the Treasury Secretary can re-authorize the Fed to open the facility again,” said Patrick Leary, chief market strategist at Incapital. “It’s more of a confidence thing for the market, given it may not be the best time with virus surges and shutdowns, but it’s not like these facilities are being used to support market functioning any more.”Read more: Mnuchin’s Efforts Are Seen as Having Muted Impact on CreditCarnival, a bellwether for companies hit hardest by the pandemic, raised almost $9 billion by issuing bonds and loans backed by its idled ships earlier this year, some with coupons above 10%. This week, it borrowed at a rate of 7.625% without pledging any assets. The offering came on the heels of an equity raise, one of many the cruise operator has deployed to finance its way through the pandemic.Investors placed orders in excess of $11 billion on this week’s $2 billion bond sale, denominated in both dollars and euros, according to people with knowledge of the deal, who asked not to be identified because the details are private. Representatives for JPMorgan Chase & Co, which led the bond sale, and Carnival, declined to comment.“It is a strong indication that liquidity remains abundant,” Ben Emons, managing director of global macro strategy at Medley Global Advisors, said before the sale was finalized. “There is not a sign yet of capital markets shutting down.”That doesn’t mean credit investors were pleased with Mnuchin’s demands. A gauge of U.S. credit risk known as the Markit CDX investment-grade index increased by the most since Oct. 28 earlier Friday. But that index, which rises as investor fears grow, is trading at about a third of the level it reached at the peak of market turmoil in March.‘Back to Normal’The U.S. corporate bond buying program had previously been extended from an earlier Sept. 30 end date. Market participants had expected another extension given the economic impact of a recent surge in Covid-19 cases and they’re still counting on the Fed’s support.The central bank wants to keep its facilities up and running given what it calls the economy’s “still-strained and vulnerable” state. Some investors are already looking ahead to the possibility of a new Treasury secretary in the Biden administration to reinstate such programs.But in the meantime, the market is ready to stand on its own two feet, said Matt Brill, head of U.S. investment-grade credit at Invesco Ltd. Companies have taken advantage of record low rates to right-size their balance sheets, and the Fed won’t be far out of reach, he said.“We need to wean ourselves off of the drug here, and this is an important step to have that happen,” Brill said. “At some point we need to get back to normal, meaning the Fed isn’t supporting the bond market on a day-to-day basis.”U.S.American Bath priced a $335 million junk bond sale to help fund its buyout by Centerbridge Partners.Dan Fabian, president at credit-focused asset management firm Alcentra, says the private companies it is financing in its direct lending funds in Europe and North America seem to be performing relatively well even as Covid-19 infections ramp up againNo companies are looking to tap the U.S. investment-grade primary market on Friday, according to an informal survey of debt underwriters, as sales slow from $40 billion this week to potentially nothing through the U.S. Thanksgiving holidayFor deal updates, click here for the New Issue MonitorFor more, click here for the Credit Daybook AmericasEuropeEuropean credit markets have brushed off any worries around divisions between European Union leaders over a giant stimulus package as well as signs of trouble in Brexit negotiations.Corporate-default risk fell in the region on Friday, initially for both high-yield and investment-grade credit, although the investment-grade benchmark widened marginally at the end of Europe’s day“These problems are minor from a credit perspective,” Juan Valencia, a credit strategist at Societe Generale said in emailed comments. “The most important thing now is economic expectations and the amount of money in the system still to be invested. Euro deals are having strong demand and the ECB continues to buy corporate credit”European primary issuance continued apace on Friday, with eight new deals in the market helping push weekly volume past 30 billion euros ($36 billion)The Co-Op Bank is giving junk-bond investors an opportunity to buy senior bank debt, offering potentially 200 million pounds ($265.5 million) of bonds that will be rated seven steps below investment grade by Moody’s Investors ServiceAsiaThere were signs in Asia that many market participants continued to bet the pandemic will force policy makers to take more steps ahead.Spreads on investment-grade dollar bonds were little changed, traders said“There will be a new president in January 2021 and there will be a stimulus package,” said said Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. “We believe investors should look past these short-term events, and if prices come off, view them as buying opportunities for what we believe will be a solid year for emerging-market credit globally in 2021.”Elsewhere, Tokyo-based Kirin Holdings Co. priced green notes whose proceeds will be used to improve energy efficiency at its factories among other things. Only a handful of beverage companies worldwide have issued sustainable bondsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  Fed, Treasury Secretary Mnuchin at odds over letting emergency lending programs expire

  Yahoo Finance
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  Wall Street futures dip as Mnuchin pulls plug on lending programs

  Reuters

Here's What $500 Invested In 7 Electric Vehicle Penny Stocks In March Is Worth Right Now

Who would have thought 2020 would be the dawn of a new era in electric vehicle stocks. Though many of these companies have been on the market in one shape or form for years, most have traded as penny stocks. Tesla Inc (NASDAQ: TSLA), which was always the top dog in the industry, now finds itself with a number of major competitors.There's no denying that FOMO (fear of missing out) has driven short-term trends in these lesser-known names, and those who invested early are now reaping the benefits.Before we continue, we need to acknowledge that these stocks carry huge amounts of risk. The EV stocks detailed below are all volatile like penny stocks. So if you are looking for ways to trade these names or make money with penny stocks, it's important to control your downside.All that being said, a number of new EV stocks have also helped fuel demand. Let's say you decided that after the March sell-off this year to invest some money into electric vehicle penny stocks. What would that look like right now if you were to take $500 at that time and throw it blindly into some of these names?Kandi Technologies Group, Inc. (NASDAQ: KNDI)Kandi Technologies is one of the newer names in the space. In 2013, the company and Geely Group, a Chinese automaker, jointly invested in the establishment of Fengsheng Automotive Technology Group Co., Ltd. in order to develop, manufacture and sell pure EV products. Earlier this year, Fengsheng introduced its first pure electric SUV, the Maple 30x.Fast-forward to today and Kandi has established dealer partnerships for the retail launch of two "affordable EV models"\- K23 and K27. Shares of KNDI have rallied almost 180% in the last two weeks, nearly getting back to the all-time high of $17.40 from July 30.A $500 investment in Kandi in mid-March would've gotten someone around 230 shares. At today's price, that position would be worth around $3,300. That's a 560% return.ElectraMeccanica Vehicles Corp (NASDAQ: SOLO)ElectraMeccanica's flagship is a single-passenger EV dubbed "SOLO". The company has been working toward commercialization and building its U.S. footprint, with its first round of new retail locations just announced at the end of October and the initial shipment of SOLO EV's just arriving in North America.With commercial launch imminent and momentum as a backdrop, SOLO shares have surged in recent weeks. In a July interview with Benzinga, ElectraMeccanica CEO Paul Rivera said, "We are not trying to compete with Tesla... When you're driving this car, it's just you, and you're focused on the road."With SOLO shares trading around $0.90 in mid-March, a $500 position would be somewhere in the ballpark of 555 shares. As of Thursday, the former penny stock reached a high of $9.74 making that position worth about $5,405, a 900% gain.Blink Charging Co. (NASDAQ: BLNK)Another one of the "pick and shovel" EV stocks is Blink Charging. The company continues gaining exposure as its charging stations remain a hot topic among traders and customers alike. Not only has Blink focused on expanding its charging footprint, but the company has also benefitted from other industry news. Apple Inc (NASDAQ: AAPL) for example, announced earlier this year that its Apple Maps would include EV charge routing. According to Blink, that will include its charging stations. Last week, Blink introduced a cable management solution for new and existing EV charger locations.BLNK reached a new all-time high Thursday, breaking $19 for the first time. A $500 position in BLNK around mid-March would equate to roughly 312 shares at $1.60. At today's price that position is worth over $5,720 or an over 1,000% gain.Ayro Inc. (NASDAQ: AYRO)Ayro Inc. initially focused on manufacturing short-haul electric vehicles, such as things that drive around college campuses and office complexes. But the company's recent deal with Karma Automotive forms a partnership that includes a plan to produce more than 20,000 light-duty trucks over the next three years. It's also reportedly worth as much as $300 million. While AYRO is still one of the lower-priced EV stocks, shares have been equally explosive. Prior to its merger with DropCar, shares were trading around $0.40 in mid-March. A $500 position was equal to roughly 1,250 shares of DCAR - now AYRO. At this week's current levels above $6, that position is worth right around $7,700.Green Power Motors (NASDAQ: GP)Green Power was originally listed on the TSX Venture market and traded in the U.S. on the OTCQX Market under the symbol GPVRF. After filing for a $35 million IPO on the Nasdaq, Green Power began trading under GP, the symbol it's known for today. The company manufactures electric buses, cargo delivery vehicles, shuttles, and transit vehicles. Green Power recently closed a deal for six electric school buses that were sold to Thermalito Union Elementary School District through Greenpower's national distributor, Creative Bus Sales.While GP reached of $23.45 earlier this year, the former penny stock currently trades around $19. Back in mid-March when Green Power was still on the OTCQX, the penny stock was worth around $1.05 meaning a $500 position was equal to about 476 shares. As of recent levels of $19, that position is now 1,700% higher valued at around $9,000.Workhorse Group (NASDAQ: WKHS)Who could forget Workhorse Group? It was one of the electric vehicle penny stocks originally brought to life by a Trump Tweet last summer. The company specializes in medium-duty trucks with powertrain components under the Workhorse chassis brand. Most recently, WKHS caught some momentum after receiving a purchase order for 500 all-electric C-1000 delivery vehicles from Pritchard Companies. Some of the momentum had been stifled following news that Ford Motor Company (NYSE: F) would be rolling out its own electric cargo vehicle.Needless to say, it hasn't been a bad year for the former penny stock. In mid-March, shares were trading around $1.50. At its peak, WKHS reached highs of $30.99. Currently, the EV stock sits around $22.78 a share. That means a $500 position in March (roughly 333 shares) is now worth over $7,580 or an over 1,400% gain.Nio Inc. (NYSE: NIO)Nio isn't the new kid on the block anymore. Last year NIO became a penny stock, at one point trading as low as $1.19. Though it didn't experience a massive sell-off like most of the market did in the first quarter, shares of NIO stock were hovering around $2.30 in mid-March. But in light of the company's recent earnings beat, NIO is at $48, knocking on the door of all-time highs. A $500 position in Mid-March would equate to about 217 shares of NIO. Today that would be worth $10,500, equating to a gain of over 2,000%. Neither the author of this post nor Pennystocks.com have a position or financial relationship with any of the stocks mentioned above. See more from Benzinga * Click here for options trades from Benzinga * Cannabis Stock Gainers And Losers From November 19, 2020 * Bitcoin, Ethereum & Chainlink - American Wrap: 11/19/2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.