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 TSLA CEO Elon Musk tweeted in response to the article.

What Happened: The article from Forbes highlights some former SPACs like Waitr Holdings WTRH and Multiplan Corporation MPLN trading below $10 and other newer SPACs with red flags.

Why 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 FSR and Lordstown Motors RIDE are building competing electric vehicles to Tesla.

Hyliion Holdings Corp HYLN and Nikola Corporation NKLA are both working on electric and hydrogen-powered Class 8 trucks that would compete with the upcoming Tesla Semi.

Canoo, going public via Hennessey Capital Acquisition HCAC will offer an electric vehicle subscription service.

QuantumScape, going public via Kensington Acquisition Corp KCAC, Eos Energy Enterprises EOSE and RMG Acquisition Corp RMG target Romeo Power are all companies competing in the battery market with Tesla.