Calif.-founded EV maker Canoo, once worth $2.4 billion, goes belly-up after moving to Texas

[upperbroccoli@lemmy.blahaj.zone]

I am confused: why should Texas be rewarded with dick-meat? Should they not rather eat excrement?

[sugar_in_your_tea@sh.itjust.works]

The US dollar, or any currency, isn't the economy either. Look at the recent bout of inflation we had, unemployment remained pretty steady despite relatively extreme rate hikes.

The US dollar is based on supply, which impacts relative value. It's all interconnected, but central banks can manage inflation/deflation regardless of what happens to the economy.

[bakkoda@sh.itjust.works]

Valuation allows for borrowing. If a company can determine it's worth to a potential lender by using it's valuation, which we agree is under the markets domain, then they are now hand in hand. If you can borrow against valuation they cannot be exclusive.

[sugar_in_your_tea@sh.itjust.works]

Sure, and that's a stock market issue (broadly speaking), not an economic one. Someone losing their shirt for investing stupidly is not indicative of an economic failure, but of a valuation failure.

Valuation problems can lead to economic problems if it's widespread enough, such as with the .com or RE market collapses, but they can also be pretty isolated and have minimal impact. Intel's valuation, for example, has been cut to almost a third (not by a third, but to a third), and that hasn't triggered or indicated much of anything in the economy, it's just Intel failing over and over to live up to their valuation. Yeah, jobs get cut (economic indicator) when there's a huge discrepancy w/ valuation, but they also tend to get created at other orgs as they snap up the business left behind by the failing company.

The economy and the market are certainly related and linked, but they're not the same thing. An economic collapse usually causes or is caused by a market collapse and vice versa, but not always, especially if it's isolated to a sector like we see with AI. If everyone completely 180s on AI, it's not going to change the jobs landscape much, but it will cause a lot of valuation corrections throughout the tech industry. Companies like Microsoft and Nvidia will be fine since they have other core businesses, but companies like OpenAI won't be nearly as resilient since that's their entire business. Likewise, financial companies investing in AI companies will also likely be fine, provided they have a sufficiently diversified portfolio.

[karpintero@lemmy.world]

Incorporated in Delaware so HQ location wouldn't matter. My guess is a last ditch cost cutting attempt and possibly got some local tax breaks. Moving is expensive though so I doubt they even recouped their moving expenses.

https://investors.canoo.com/company-information/faq

[stoly@lemmy.world]

They can still get CA unemployment because they would have worked through eligible periods prior to their moves. I had similar happen when I moved to Louisiana and got laid off. The guy at the unemployment office told me to apply in CA instead because the rate would be higher.

[sprocketfree@sh.itjust.works]

So now CA is paying for TX unemployment... They should send TX the bill

[stoly@lemmy.world]

You are eligible for any state you worked in during the applicable period. It’ doesn’t matter if you still live there.

[mojofrododojo@lemmy.world]

imagine asking the women you work with, and your colleague's spouses and daughters:

"Hey, let's uproot everything and move to uterightsbannedistan, er, Texas, where a pregnancy complication could easily kill any of you, but the corporation will save LOADS!"

fucking chodes

[mac@mander.xyz]

Didn't you hear? "Gay" is synonymous with "bad".

[daddy32@lemmy.world]

political winds now being essentially hostile to EV manufacturers.

Wonder what musk's got to say about that. Or are the winds hostile against tesla's competition only?