Tesla Investors Worry About the Carmaker’s Future

The rocky market and generally lackluster performance of SPACs post-deal have made pulling off an acquisition more difficult. There are 533 SPACs that have raised money from investors still seeking a suitable acquisition. Of those, about 79 will hit their deadline by the end of the year, according to SPACInsider, which calculated the number for DealBook.

“This is for sure an unbelievably difficult period for this market,” said Kristi Marvin, a former investment banker who runs SPACInsider. This year, 45 SPACs have liquidated or announced they will, returning as much as $12 billion to their original investors, according to the group. Last month, Chamath Palihapitiya, once a prominent and enthusiastic sponsor of SPACs, announced he was closing two of his deals and giving the money back.

But quitting is about to get more expensive. The Inflation Reduction Act’s 1 percent tax on stock buybacks applies to SPAC liquidations as well. Starting Jan. 1, sponsors will have to pay the tax if they liquidate.

Paradoxically, the SPAC is making a modest comeback. October is on pace to see more SPAC deals than June, July and August combined. But as their clocks run out, SPAC sponsors appear to be getting less picky. Parsec Capital Acquisition Corp. raised $86 million a little over a year ago, and its sponsors were looking for a space-themed merger candidate. This week it found a dance partner: Enteractive Media, which makes videos for casinos and gambling websites.

“My prognosis is far from perfect, but my life is perfect.”

— John Mack, a former Morgan Stanley C.E.O., discussing being diagnosed with dementia in his new memoir, “Up Close and All in: Life Lessons From a Wall Street Warrior.” Bloomberg’s review of the book describes it as “a rare opportunity to hear power’s unvarnished internal monologue.”

Article source: https://www.nytimes.com/2022/10/20/business/dealbook/tesla-bulls-share-price-elon-musk.html