Charged: Tesla Discloses $1.5b Bitcoin Investment

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Welcome to The Fly's latest edition of "Charged," where we look at some analysts' notes, news and activity in the electric vehicle and clean energy space.


Tesla (TSLAsaid in a Securities and Exchange Commission filing Monday that it bought $1.5B worth of bitcoin and that it plans to begin accepting it as a form of payment for its products in the near future. This comes amid a couple of positive messages about digital currencies by Elon Musk on Twitter. Commenting on the announcement, Wedbush analyst Daniel Ives said he believes Tesla's move could put more momentum into shares as more investors start to value the company's bitcoin/crypto exposure as part of the overall valuation.


Volta Industries and Tortoise Acquisition Corp. II (SNPR), a publicly traded special purpose acquisition company with a focus on energy sustainability and decarbonizing transportation, announced they intend to merge. Upon the closing of the transaction, the combined entity will be named Volta and remain on the NYSE under the new ticker symbol (VLTA). The pro forma equity value of the combined company is expected to exceed $2B at the $10.00 per share PIPE price and assuming minimal redemptions by Tortoise Acquisition Corp. II public shareholders. Anticipated net proceeds of approximately $600M will be used to accelerate Volta's buildout of its charging network already in the pipeline. This includes an upsized $300M fully committed private placement of common stock in the combined company. The PIPE is anchored by institutional investors. The pro forma enterprise value of the combined company is expected to be approximately $1.4B at the $10.00 per share PIPE price. Scott Mercer will continue as CEO of the combined company.


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