How the SPAC market is thriving
XL Fleet has finalized a merger with a special purpose acquisition company (SPAC) to turn commercial vehicles into hybrid models and Great Quarter, Guys co-host Seth Holm says this matters because the Class A vehicles it targets take up a small amount of the market but 20% of fuel consumption.
XL Fleet has already moved forward into putting its product into some commercial vehicles and has seen returns in the millions.
Subscription company BarkBox has grown 58% this year and has decided to go public. Neither Holm nor co-host Andrew care about this public offering but say the subscription market is hot, despite the “silly business model,” says Holm.
Apple has announced it is working on developing its own electric car to be deployed in 2024. Previously Apple had rolled back its plans to enter the EV market, even firing 200 people out of its car development sector just this year.
However, Apple’s manufacturing partners have revealed Apple has asked to start ramping up production of auto parts to be developed into proprietary EV tech.
Holm says, “Apple is back and they are coming right at Tesla,” and with the cash flow available to Apple, Tesla should be wary of the competition.
Holm thinks Apple has all the tools at its disposal to succeed, but it needs to be thinking bigger picture around additional revenue streams to make it work.
Cox highlights the five advantages with Apple: a strong preexisting talent pipeline; massive cash reserves; historical record of disruptive technology; brand recognition; and a rich ecosystem of product development.
While nothing is known about the products to come, Cox says there is no doubt they will exceed consumer expectations and include “game-changing battery technology.”