One of the most influential names in the investing world tweeted about SPACs on Monday. The question is what could the tweet mean.
What Happened: Elon Musk, CEO of Tesla Inc (NASDAQ: TSLA), has moved the prices of stocks like GameStop (NYSE: GME) and Etsy Inc (NASDAQ: ETSY) with tweets showing support for the companies.
Tweets from Musk about cryptocurrencies like Bitcoin (CRYPTO: BTC) and Dogecoin (CRYPTO: DOGE) have also sent prices higher thanks to his large following on Twitter Inc (NYSE: TWTR) and watchful eyes from Tesla investors and fans.
A tweet about SPACs from Musk has led the fintwit community to look for clues on what it could mean.
Green eggs & SPAC
— Elon Musk (@elonmusk) March 1, 2021
Related Link: 5 Things You Might Not Know About Elon Musk
What It Could Mean: The tweet from Musk could be a sign of support for SPACs, but given the history Musk has with SPACs that could be unlikely.
In November, Musk tweeted “caution strongly advised with SPACs” in response to a Forbes cover story on “The Looming SPAC meltdown.”
The tweet about Green Eggs & SPAC also came after Musk seemed to take a shot at a rival company going public via SPAC. On Monday, SpaceX competitor Rocket Labs announced a SPAC merger with Vector Acquisition Corporation (NASDAQ: VACQ).
“Looks familiar haha. Neverthelesss, the right move. Congrats to Rocket Lab,” Musk tweeted in response to a tweet from a small account showing the Neutron rocket unveiled by Rocket Lab.
The tweet could be referring to SPACs being pigs or ham in this case as he has not liked them. Perhaps it in reference to the old Wall Street motto of “bears make money, bulls make money, pigs get slaughtered.”
Speculation has also picked up that perhaps a Musk-owned company like Starlink, a unit of SpaceX could go public via a SPAC.
That seems unlikely given Musk mentioned just last month that Starlink would IPO when the company can “predict cash flow reasonably well.” In September, Musk said if Starlink does IPO, it would give retail investors first dibs at the offering.
There is one SPAC trading as units that has ham in the name with Hamilton Lane Alliance Holdings I (NASDAQ: HLAHU).
Another interesting angle for investors to consider with the Dr. Seuss-referenced tweet is the fact that the birthday of the well-known author of children’s books falls on March 2.
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