The electric car company Canoo made a weak Wall Street debut on Tuesday after completing a reverse merger with Hennessy Capital Acquisition.
The Torrance-based startup, trading on the Nasdaq under the ticker symbol GOEV, closed the session down 3.1%, falling from $22.75 a share.
<p>The company offers a subscription electric car that is slated for release in 2022 and has touted its "skateboard platform" design. Last week, Canoo unveiled its second vehicle, a <a href="https://dot.la/canoo-2649521744/particle-1" target="_self">delivery van</a> that starts at $33,000.</p><p>The startup <a data-linked-post="2645109330" href="https://dot.la/canoo-hyundai-electric-vehicle-2645109330.html" target="_blank">inked a deal earlier this year</a> with Hyundai Motor Group to build its futuristic modular minivan that consumers can rent through a subscription service.</p><p>Canoo's move is the latest in a string of electric vehicles going public via a SPAC. In October, <a data-linked-post="2648211958" href="https://dot.la/fisker-gets-ready-for-wall-street-debut-picks-up-manhattan-beach-hq-2648211958.html" target="_blank">Fisker went public</a> following a similar merger that valued the company at around $3 billion. </p><p>The EV market is red hot. Shares for Tesla were down after its first day in the S&P 500 Monday, but its stock soared this year, making Elon Musk the second richest person in the world.</p><p>Hennessy shareholders approved the deal with Canoo on Monday. In a statement released then, Canoo CEO Tony Aquila said that "the next chapter is a very important one" as the company gears up for 2023 production.</p>
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After months of speculation, SpaceX and Tesla Inc. chief executive Elon Musk confirmed Tuesday that he is moving to Texas.
The Los Angeles resident made the announcement at "The Wall Street Journal" CEO Council summit, citing Silicon Valley's "outsized influence in the world," which he believes will be reduced as a symptom of the coronavirus pandemic. "I think we'll see some reduction in the influence of Silicon Valley," he said.
<p>Musk criticized California, calling it complacent, with its powerhouse status. "If a team has been winning for too long they do tend to get a little complacent, a little entitled and then they don't win the championship anymore." he said. "California's been winning for a long time. And I think they're taking them for granted a bit," referring to the state's innovators. </p><p>He joins an "<a href="https://www.bizjournals.com/sanfrancisco/news/2020/11/24/bay-area-exodus-accelerates-at-year-end-as-some-se.html" rel="noopener noreferrer" target="_blank">exodus</a>" of Silicon Valley executives and employees who are <a href="https://dot.la/los-angeles-tech-2647885395.html" target="_self">leaving the state</a> as remote work becomes a norm, to escape California's stricter regulations and higher taxes. Musk, who became the second richest man in the world, next to Amazon head Jeff Bezos, after Tesla shares soared, stands to benefit from Texas's lack of a state income tax.</p><p>Earlier this week, <a href="https://www.bloomberg.com/news/articles/2020-12-07/texas-hold-em-musk-moves-his-foundation-to-the-lone-star-state?srnd=deals&sref=LspfQlRv" rel="noopener noreferrer" target="_blank">Bloomberg News reported</a> that the Musk Foundation quietly moved to Texas in October, a move that had been in the works since the summer. Musk has suggested several times online earlier this year that he was considering moving.</p><p>At the beginning of May, he <a href="https://twitter.com/elonmusk/status/1256239554148724737" rel="noopener noreferrer" target="_blank">tweeted</a> "Will own no house." He then listed several of his Los Angeles properties on <a href="https://www.zillow.com/homedetails/10911-Chalon-Rd-Los-Angeles-CA-90077/20529102_zpid/" rel="noopener noreferrer" target="_blank">Zillow</a>.</p><p>A week later, <a href="https://twitter.com/elonmusk/status/1259162367285317633?lang=en" rel="noopener noreferrer" target="_blank">Musk took to Twitter</a> again, to disagree with Alameda County's shelter-in-place rules, which were stricter than the state's COVID-19 guidelines.</p><p>"Tesla will now move its HQ and future programs to Texas/Nevada immediately," he tweeted. "If we even retain Fremont manufacturing activity at all, it will be dependen [sic] on how Tesla is treated in the future." </p><p>Tesla then briefly sued the county, dropping the suit a little over a week later.</p><p>Despite his move, Musk said both Tesla and SpaceX will continue the majority of their operations in California in his Tuesday announcement. In Tesla's second-quarter earnings call in July, <a href="https://www.theverge.com/2020/7/22/21334860/tesla-cybertruck-factory-austin-texas-location-model-y" rel="noopener noreferrer" target="_blank">Musk confirmed</a> that a second factory would be constructed in Austin, to produce Tesla's Cybertruck, its Semi, Model 3 and Model Y.</p>
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Luxury electric vehicle-maker Karma Automotive announced pricing for its first all-electric car will start at $79,900, as the company prepares to take on Tesla and break out in the burgeoning upscale electric vehicle market.
The car can be reserved for a fully-refundable $100 deposit on their website. The design for the Karma GSe Series sedan has yet to be released but the company said it would retain the low-slung sporty profile of the company's signature car, the Revero GT, with a powertrain configuration, 21-inch wheels and vegan leather interior standard. Karma said its range will be "north of 300 miles."
<p>It's set to roll out next year as competition in the electric vehicle market heats up. Earlier this week, Silicon Valley-based Lucid announced their car, Lucid Air, is slated for 2021 and will start at $77,400. That prompted Tesla CEO Elon Musk to announce a price drop for the Model S.</p><p>Tesla has dominated the market but a slew of new electric vehicles are set to come on line that could challenge the carmaker's position. Karma told dot.LA earlier this year <a href="https://dot.la/karma-automotive-ipo-2646804376.html" target="_blank">it is talks with investment banks to help it go public</a>. The company sought to bring down prices so it can have a broader market appeal.</p><p>With production facilities in Moreno Valley, Karma is the only U.S.-based electric vehicle startup that is producing and selling vehicles other than Tesla. Last year it rolled out about 550 of its Revero GT, an ultra luxury electric vehicle that starts around $135,000.</p>
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