🚙 Lordstown Motors, unjuiced

...and "Build Back Better," the world edition [Disclosures]( Hindenburg checking the e-truck receipts [PeopleImages/E+ via GettyImages] Yesterday’s Market Moves Dow Jones 34,394 (-0.25%) S&P 500 4,255 (+0.18%) Nasdaq 14,174 (+0.74%) Bitcoin $40,387 (+4.04%) Dow Jones 34,394 (-0.25%) S&P 500 4,255 (+0.18%) Nasdaq 14,174 (+0.74%) Bitcoin $40,387 (+4.04%) Hey Snackers, Shiba just got funged: the iconic "Doge" Shiba Inu meme was [sold]( as an NFT for $4M, making it the most expensive meme NFT of all time. The market notched [record]( highs yesterday, as investors shifted into Big Tech stocks. Swerve Lordstown, unjuiced: the buzzy e-truck startup runs into a truckload of trouble Hold the hard seltzers... Summer isn't starting off well for [Lordstown Motors](. The e-truck startup went public via SPAC merger in October, and has been teasing its much-hyped "Endurance" electric pickup since last June. Those were better days for Lordstown. - Last week: Lordstown said it doesn’t have enough cash to start commercial production (it hasn't sold a truck yet), and [warned]( it has “substantial doubt” about its ability to survive the next year. - Yesterday: Lordstown's CEO and CFO resigned (not encouraging), and the stock plunged 19%. The "I told you so" award goes to... Hindenburg Research. It's the same short-selling firm that [dropped]( a 67-page report accusing [Nikola]( of exaggerating the readiness of its e-truck tech, calling it "an intricate fraud" ([see]( truck-rolling-down-a-hill commercial). Nikola's CEO resigned soon after, and the stock has fallen 40% since. - In March, Hindenburg released a [report]( alleging Lordstown misled investors by exaggerating its production readiness and biz potential. - In January, Lordstown said the Endurance pickup already had 100K nonbinding preorders. Hindenburg did some digging and concluded those were “largely fictitious.” For example: Hindenburg found that companies without commercial fleets had preordered 1K trucks. - The TLDR: Hindenburg believes Lordstown used “fake” orders to raise cash, and said its pickup was years away from production. Lordstown still says that it could start production by September. THE TAKEAWAY Short sellers can operate like investigative journalists… but with major conflicts of interest. A new report partially confirms Hindenburgs findings about the preorders. Now the SEC is investigating the allegations. Short sellers can sometimes have a corrective effect on markets by exposing overvalued companies, as Hindenburg may have done. Buuuut: Hindenburg also has a short position in the stock — aka: it would profit from Lordstown falling. Short sellers can make companies more transparent – but they're driven by their own financial incentives. Build Build Back Better, world edition: G7 countries want to fund global infrastructure to rival China Friends Reunion vibes... G7 countries have been getting cozy lately. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. This month, G7 leaders schmoozed over tea at a London summit — and [agreed]( on backing a 15% global minimum corporate tax rate. France decided to [ship]( another Statue of Liberty to the US as a gift of friendship (#aw). Now, the G7 is bonding over a global infrastructure initiative: - Build Back Better World: Doesn't exactly roll off the tongue. The G7 announced the initiative on Sunday, inspired by Biden’s "Build Back Better" plan for the US. - Global ambitions: You can tell by the addition of "World" at the end. G7 nations would help finance infrastructure projects in developing countries. Think: roads, bridges, and clean energy infrastructure. - German Chancellor Angela Merkel: "For countries in need of development, only concrete projects count.” Pun intended? Rare bipartisan support topics ... Extra vacation days, and countering China’s power (it's a theme). With Build Back Better World, the G7 [hopes]( to rival China's multi-trillion-dollar "Belt and Road" initiative. China’s ambitious program aims to build physical and digital infrastructure connecting hundreds of countries. It's a way for China to expand its global influence. BBBW is a way for the US and friends to counter that. THE TAKEAWAY The real winners could be companies... When the US took on Russia during the Cold War, American military contractors made big profits. Today’s tension with China is less about weapons, more about tech power. This month, the Senate [approved]( a $250B bill to boost government spending on tech R&D to keep the US competitive against China (think: more US-made chips). This global infrastructure initiative could benefit American tech, telecom, and energy companies, too. What else we're Snackin' - [Vax]( American biotech [Novavax]( said its Covid vaccine was 90% effective in large trials in the US and Mexico, including against newer variants. - [Shots]( Companies including [Goldman Sachs]( and [Morgan Stanley]( are pushing employees to prove they're vaxed as offices reopen. - [Data]( The US is ratcheting up pressure on China's 5G ambitions, offering financial incentives to countries willing to pass on Chinese-made tech. - [Revenge]( [American Express]( CEO said that travel and dining spending is nearing full recovery. - [Flated]( [JPMorgan Chase]( CEO said the bank is stockpiling cash because there's a "very good chance" that inflation will be around for a while. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. The Snacks Daily Podcast Dave & Buster’s is the Chuck E. Cheese for adults — but it faces the same issue as McDonald's. [Tune in]( to our 15-minute pod to hear about the "The Decay Curve." Snack Fact Of the Day [The average age of US cars hit a record 12.1 years in 2020]( Tuesday - Earnings expected from Oracle, H&R Block, and La-Z-Boy ID: 1685876 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed Robinhood account or any other account, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision. 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