[Harry_Zoe]

These SPAC-led introductions of new companies to the stock market have all the stink of a load of salmon sitting for a week in the back of a truck in Dover. A new financial scandal in the making?

SEC to review Lordstown Motors' SPAC deal, vehicle preorders | Reuters

"Hindenburg said it had taken a short position in Lordstown Motors, accusing the company of using “fake” orders to raise capital and claiming that its upcoming truck is three to four years away from production.


The U.S. securities regulator has opened an inquiry into Wall Street’s blank-check acquisition frenzy, and is seeking information on how underwriters are managing the risks involved, said four people with direct knowledge of the matter.

A flurry of electric vehicle makers have went public via mergers with so-called special purpose acquisition companies, bypassing the rigorous scrutiny of a traditional initial public offering (IPO) process and riding on Tesla Inc’s share price rally."

Who knows any more about SPACs and how they work?

 

[Swagman]

These SPAC-led introductions of new companies to the stock market have all the stink of a load of salmon sitting for a week in the back of a truck in Dover. A new financial scandal in the making?

SEC to review Lordstown Motors' SPAC deal, vehicle preorders | Reuters

"Hindenburg said it had taken a short position in Lordstown Motors, accusing the company of using “fake” orders to raise capital and claiming that its upcoming truck is three to four years away from production.


The U.S. securities regulator has opened an inquiry into Wall Street’s blank-check acquisition frenzy, and is seeking information on how underwriters are managing the risks involved, said four people with direct knowledge of the matter.

A flurry of electric vehicle makers have went public via mergers with so-called special purpose acquisition companies, bypassing the rigorous scrutiny of a traditional initial public offering (IPO) process and riding on Tesla Inc’s share price rally."

Who knows any more about SPACs and how they work?

Don't ask me, I know nothing, but with any of these "schemes" they only seem set up to catch out the unwary.
As the saying goes, "if it looks too good to be true, it usually is".
In other words "don't look a gift-horse in the mouth".
There are loads of people jumping onto the technology bandwagon, with all manner of quick fixes, as money is chucked at fixing the looming Climate Crisis and people see an opportinity to "make a killing", when the reality is that the quick fixes have already been done and what is now required is to actually cut carbon emissions from cars, planes, boats and trains.
Stupidity and thinking we can cut corners will do us in the end. There are no easy ways out now. Either way, we are screwed.

 

[dk6780]

Like most things SPACS are not inherently bad, and used correctly offer the ability to raise capital quickly allowing new starts to expand. Unlike Nikola, Lordstown have a relatively conventional concept "only" requiring a switch from ICE to BEV without the grandiose plan to create a new energy network from scratch, but effectively relying on home charging and market forces for a network. They have purchased a secondhand plant and equipment for manufacturing which will mean compromises but is easier than a desert site.
The issue with SPACS as an investor is that you don't know what is going to be bought or the price to be paid, you just have to trust the founders are going to do the right thing and have sufficient skin in to not be willing to get burnt. Much like investing in one of his funds, you say have to trust the sage of Omaha to invest in an area and pay the right price. If he were to invest in Nikola I'd be surprised, but then he knows more than me and I wouldn't cry foul. But it can all go wrong as Neil Woodford's investors found out.
Unlike the funds above SPACS generally just invest in a single company, so are much higher risk but in theory bring more than just money to the party and add their expertise. What did Elon know about rockets or tunnels? Yet he has created successfull companies by adding his pixie dust to the right people. In theory, if he needed the money, a SPAC would allow the public to get onboard with such a venture with him in a defined area before he started that venture. I would have joined his SPAC for say tunneling as I have more trust in him than say one from another person looking to get into Hydrogen Semi's even if they had a lot of Semi manufacturing experience as I'd be scared that they'd buy Nikola.
Conventional IPOs also look toppy at times, for example Deliveroo as I just don't understand why their market exists which is more me being out of touch with the younger world than any analysis. But then I wouldn't invest in a SPAC that aims to get into the home takeaway delivery market.

 

[Swagman]

Anyway, Lordstown isn't the one.
Arrival, makers of electric vans and buses had it's first day of trading on the NASDAQ yesterday.
Seems to have gone quite well.....

UK electric vehicle startup Arrival lists at a $13bn valuation

Arrival, a British startup which produces zero-emission public transit vehicles, has gone public on the Nasdaq at a valuation of $13bn.

sifted.eu

 

[dk6780]

UK electric vehicle startup Arrival lists at a $13bn valuation

Arrival, a British startup which produces zero-emission public transit vehicles, has gone public on the Nasdaq at a valuation of $13bn.

sifted.eu

Arrival, a British startup that produces zero-emission public transit vehicles ....

Interesting the forward view taken in the reporting - Arrival only have pre-production prototypes, but I wish them well.

 

[Swagman]

Interesting the forward view taken in the reporting - Arrival only have pre-production prototypes, but I wish them well.

I agree.

I managed to blag a site visit to their facility in Banbury a few years ago. I think they have now moved down the road to Bicester, but I could be wrong. The son of a mate, is one of the engineers. They didn't even have the skateboard platform then, but UPS the American logistics company have thrown a lot of money at them, so somebody thinks they have a chance of success.

Having said that DHL, the German logistics titan threw a lot of money at Streetscooter a few years ago, but have now pulled the plug on the whole shebang as it was losing money hand over fist.

I can build my own e-cargobikes here in the UK for under £3k, whereas these vans are upwards of £40k. They still end up doing the same job, last-mile logistics, but one is seen as super sexy to the already driving establishment, whereas everyone else thinks I'm as mad as a hatter (there could be something in that).

If and it's a big if, I get it right I'll have 5000+ e-cargobikes out on the road in 5 years time, while the likes of Arrival and many other start-ups are still tinkering at the edges.

It's like Amazon backing Rivian with money and orders for 100,000 vans to service the USA. Rivian, like Arrival don't even have a working vehicle, let alone a production line, but the logistics industry doesn't think outside of the box, so sticks with what it knows, giving interlopers like me a chance.

 

[Harry_Zoe]

I agree.

I managed to blag a site visit to their facility in Banbury a few years ago. I think they have now moved down the road to Bicester, but I could be wrong. The son of a mate, is one of the engineers. They didn't even have the skateboard platform then, but UPS the American logistics company have thrown a lot of money at them, so somebody thinks they have a chance of success.

Having said that DHL, the German logistics titan threw a lot of money at Streetscooter a few years ago, but have now pulled the plug on the whole shebang as it was losing money hand over fist.

I can build my own e-cargobikes here in the UK for under £3k, whereas these vans are upwards of £40k. They still end up doing the same job, last-mile logistics, but one is seen as super sexy to the already driving establishment, whereas everyone else thinks I'm as mad as a hatter (there could be something in that).

If and it's a big if, I get it right I'll have 5000+ e-cargobikes out on the road in 5 years time, while the likes of Arrival and many other start-ups are still tinkering at the edges.

It's like Amazon backing Rivian with money and orders for 100,000 vans to service the USA. Rivian, like Arrival don't even have a working vehicle, let alone a production line, but the logistics industry doesn't think outside of the box, so sticks with what it knows, giving interlopers like me a chance.

Wow, I wish you luck with your venture, sounds exciting!

 

[dk6780]

I appreciate your efforts and wish you all of the best with them. I suspect that the intellectual property that you'll be able to protect is relatively limited in comparison to a car/van/bus and hence the big investors will not be interested in your company but instead some low wage economy will rip of your design and Amazon will sell them.
But anything that gets the last mile delivery and the Uber type transport away from cars and vans is good in my eyes.

 

[Swagman]

I appreciate your efforts and wish you all of the best with them. I suspect that the intellectual property that you'll be able to protect is relatively limited in comparison to a car/van/bus and hence the big investors will not be interested in your company but instead some low wage economy will rip of your design and Amazon will sell them.
But anything that gets the last mile delivery and the Uber type transport away from cars and vans is good in my eyes. (Y)

I've said this before, I could buy cheap Chinese imports now, made from pig iron, that would last 6 months if you are lucky.

Of course, nobody is going to invest major money in what I do, the e-cargobikes are limited by both size, range and legislation on power output which means that what works in some parts of the UK won't work in others, but the beauty for me is that I have an already existing buyer of the bikes, my existing courier business. I'm not interested in making cargobikes for other people, just to expand my own fleet as quickly as possible while creating a few jobs in the process.

My aim is to create a niche business that does the first/last mile logistics in built up towns and cities then rely upon DHL/TNT/whoever to do the actual trunking for me. That's what they are good at. I should be able to fund all of this without outside help, apart from grant funding and soft loans, then hopefully fill my boots while electric vans are still in their relative infancy, or flog it as a going concern to one of the big boys.

DHL, Amazon, Arrival, myself are all trying to crack the same nut, we're just going about it in different ways.

I'd hate to get 10 years down the line to find these start-ups not hitting the mark and realising I should have had a go, so we will. In for a penny, in for a pound.....

 

[Harry_Zoe]

I've said this before, I could buy cheap Chinese imports now, made from pig iron, that would last 6 months if you are lucky.

Of course, nobody is going to invest major money in what I do, the e-cargobikes are limited by both size, range and legislation on power output which means that what works in some parts of the UK won't work in others, but the beauty for me is that I have an already existing buyer of the bikes, my existing courier business. I'm not interested in making cargobikes for other people, just to expand my own fleet as quickly as possible while creating a few jobs in the process.

My aim is to create a niche business that does the first/last mile logistics in built up towns and cities then rely upon DHL/TNT/whoever to do the actual trunking for me. That's what they are good at. I should be able to fund all of this without outside help, apart from grant funding and soft loans, then hopefully fill my boots while electric vans are still in their relative infancy, or flog it as a going concern to one of the big boys.

DHL, Amazon, Arrival, myself are all trying to crack the same nut, we're just going about it in different ways.

I'd hate to get 10 years down the line to find these start-ups not hitting the mark and realising I should have had a go, so we will. In for a penny, in for a pound.....

I look forward to seeing the Hovis advert redone with one of your bikes!

(79) Hovis 'Bike' advert 1973 (Britain's favourite TV ad) - YouTube

Hopefully the battery won't go flat half way up the hill!

 

[Swagman]

I look forward to seeing the Hovis advert redone with one of your bikes!

(79) Hovis 'Bike' advert 1973 (Britain's favourite TV ad) - YouTube

Hopefully the battery won't go flat half way up the hill!

I cycled up Gold Hill in Shaftesbury a couple of days before the last lockdown started on a normal pushbike, rather than an e-cargobike.
Bloody hard work, I can tell you
That might be a bit extreme, but we manage to get up the hill to the cathedral in Lincoln without any problems, so who knows.