SEC Assigns Lucid to $ 24 Billion Peak SPAC Deal

Image of the article titled The Feds Are Eyeballing Lucid's $ 24 billion

Photo: Adam ismail

Guess if you follow in Tesla’s footsteps, you might get an SEC investigation as well, right? All this and more in The morning shift by December 6, 2021.

Gear 1: Stocks tumble as SEC investigates

Lucid stocks plunged on Monday, which sounds silly. After all, Lucid is supposed to be the next Tesla (or something close) and Elon is always with the SEC. Looks like everything is in order?

Anyway, here’s the news from Reuters:

Lucide Group Inc. has received a subpoena from the United States Securities and Exchange Commission seeking documents related to an investigation into its blank check deal, the luxury electric vehicle maker said Monday.

“The investigation appears to relate to the business combination between the company (Churchill Capital Corp. IV) and Atieva Inc and certain projections and statements,” the company said. said in a regulatory file.

Actions in Lucid fell 12% in pre-market trade on Monday.

The deal in question was truly a historic moment in the obfuscation of information as a company goes public. Lucid was not as cheeky as Nikola in his SPAC agreement, but he was tried “State-of-the-art SPACBy Bloomberg no later than July.

Gear Two: Automakers Reap Profits While Suppliers Suffer

During the ongoing pandemic, supply issues and labor crises have strained car production and sales. Automakers themselves have largely been able to switch to selling models only with as high a profit margin as possible. As such, earnings for automakers have been almost worrisome.

The companies that supply their parts to these automakers, however, have not been as blessed as the the Wall Street newspaper details:

The biggest problem, however, is that his company is losing the advantage of the auto industry. sparkling price, [Peter Anthony, the head of a Chicago-area auto supplier UGN Inc.] added. With stocks tight, car buyers are paying record highs for new vehicles, leading automakers and dealers to post healthy profits this year, despite the disruption caused by the computer chip shortage.

Mr. Anthony’s business is a link in a global supply chain blazing pressured by labor shortages, rising freight and commodity costs, and manufacturing disruptions.

Suppliers typically do business with automakers on fixed contracts that set prices for the duration of a vehicle program – which can last more than five years – and are difficult to renegotiate, according to executives and lawyers at the. sector. Auto parts manufacturers also rely on a constant flow of work orders and efficient, just-in-time supply chains to contain costs.

But delivery delays and canceled orders resulting from chip shortages, combined with soaring costs in their business, are putting even more pressure on already slim profit margins, according to industry executives and analysts.

Basically, automakers take advantage of inflexible deals with their parts suppliers. It doesn’t feel right.

3rd gear: European car suppliers say they will lose a quarter of a million jobs to electric vehicles

Speaking of auto suppliers, a large organization of European suppliers says they expect to lose half a million jobs when switching to electric vehicles and only reclaim half of them in new roles. Of Financial Time:

More than two-thirds of those 501,000 roles would disappear in the five years leading up to that date, according to a survey of nearly 100 companies for the European Association of Automotive Suppliers, Clepa, making it difficult to mitigate the “impacts. social and economic “caused. by mass unemployment.

But the PwC survey also found that 226,000 new jobs would be created in the manufacturing of electrical parts, reducing the net number of job losses to around 275,000 over the next two decades.

I remain largely skeptical of these drastic predictions, but I agree with the sentiment of these claims: the shift to a green economy should come with guaranteed employment.

4th gear: GM increases its presence in Washington DC

If you’ve noticed a very comfortable relationship with GM and the Biden administration, with Biden personally praising CEO Mary Barra and ripping up a Hummer in front of the press, then you might not be surprised at this. Automotive news report on GM strengthening its lobbying presence in DC:

As General Motors commits to invest billions of dollars in the development of electric and autonomous vehicles, its reputation in the nation’s capital will be essential in guiding policies that support the transformation. Once a company that was harshly criticized by US lawmakers for an announcement at the end of 2018 that it would reduce its hired workforce and stop production in several factories such as part of a restructuring, the Detroit automaker is now strengthening its presence in Washington as it puts everything on electric vehicles.

As part of the strategy, GM has continued a deliberate effort to strengthen its DC office, most recently with the hiring of former NHTSA chief David Strickland in September and veteran of public policies Omar Vargas in July. The election of CEO Mary Barra for a two-year term as president of the Business Roundtable, a Washington group that represents the CEOs of some of America’s largest corporations, is also strengthening GM’s influence in DC.

AN notes that this is not a wasted job and that it is happening in a context where Washington is very angry with GM in general:

Dingell – a Michigan Democrat who spent more than 30 years at GM, where she was president of its philanthropic arm and a senior executive for public affairs – criticized the restructuring at the time. In a 2018 CNN interview, she called the automaker “Washington, DC’s most hated company right now.”

Ouch.

5th gear: Ford, VW and MG pool CO2 in UK

Ford and VW’s ties in Europe are strengthening on the green car front, as the two companies now pool their CO2 figures with MG in the UK, as Matthias Schmidt reports:

According to the latest exclusive data from Schmidt Automotive Research and the UK government, Ford has joined the Volkswagen Group CO2 pool only in UK for 2021. UK is no longer part of EU27 plus fleet average legislation CO2 emissions from Norway and Iceland which requires passenger car manufacturers to meet a mass-adjusted fleet average CO2 target of 95 g / km in the old NEDC driving cycle or closer to 120 g / km in the WLTP cycle to 2025, which is adopted in the UK only, for the first year.

Ford and VW haven’t pooled their CO2 figures for all of Europe, but who knows if that’s coming. All we can say is that the pressure is on there to comply with strict emissions standards.

Reverse: A highlight in the history of water polo

From the NYT in 1956, symbolic moment of the Cold War just after the crushing of the uprising.

MELBOURNE, Australia, Thursday, Dec.6 (above) – Fists flew and blood poured into the energized Olympic pool today as a crowd of 5,500 cheered Hungary undefeated for a 4- victory 0 on the Russian team booed vigorously in the water polo round final.

Neutral: have you invested in an EV startup?

The other day I ran into a guy claiming to have made $ 100,000 investing in Fisker. It was a day after Ocean’s revelation. I advised him to sell, immediately.

Carol N. Valencia