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, 2020

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 (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 Scam

Canoo, 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.