SPACTacular

My current favorite SPAC AACT (Kodiak Robotics) and a bunch of other great investments

To start with, I want to include a link to Swen Lorenz’s compilation book from the Weird Shit Investing conference. I was very blessed to have presented there, and had the opportunity to meet many amazing fund managers & idea generators.

If you are a trader, you must read this book as it has a ton of unique investment opportunities that are not correlated to this market top. I have personally bought into several ideas listed in there. With that said, onto my article.

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For those that have been watching my substack notes/tweets, I mentioned that the SPAC market was back a few months ago. My first pick, which I shared, CLBR warrants, is now up 600%. I have since made several 4x returns on other spac warrants.

So, in the spirit of special situation investing, where hidden value meets asymmetric risk-reward profiles, I will describe my favorite spac that stands out to me in today's challenged value market environment.

It trades at close to trust value, offering downside protection while positioning investors for explosive growth and a coming FOMO wave in the next big thing after AI.

Why AACT?

Ares Acquisition Corporation II (AACT) currently trades near trust value ($11.31 vs. $11.26 per share), offering a rare safety net for SPAC investors.

In April 2025, AACT announced a definitive agreement to merge with Kodiak Robotics, a leader in off-road autonomous trucking.

This deal provides a unique entry into the autonomous vehicle revolution, but with real commercial traction and a business model that sidesteps the regulatory and operational headaches plaguing highway-focused AV players.

AACT presents a compelling proposition: exposure to the autonomous vehicle revolution through a company that's already generating commercial revenue and has a small, existing, expanding client base with the benefit of exceptional downside protection prior to merger.

The merger is backed by over $110 million in institutional financing from Soros Fund Management, ARK Investments, and Ares, with about $551 million of cash in AACT’s trust account expected at closing.

Kodiak will initially trade with a market valuation disconnect as compared to its nearest competitor: Aurora Innovation. I expect this to be rectified quickly for the reasons laid out below.

Valuation

Aurora Innovation, the poster child for highway autonomy, sports a $9.1 billion market cap. Yet Aurora continues to burn cash and is still running pilot programs: with no real commercial revenue, just a lot of hype.

In contrast, the AACT-Kodiak merger values the combined company at about $2.5 billion, and Kodiak is already generating revenue through its partnership with Atlas Energy Solutions.

This discrepancy reflects the market's obsession with highway autonomy while overlooking the more immediate commercial opportunity in off-road environments, especially in the construction and oilfield sector.

Aurora's focus on long-haul trucking faces regulatory hurdles, complex highway environments, and uncertain timelines.

Kodiak's off-road strategy sidesteps these challenges entirely, operating on private lease roads in the Permian Basin where regulations are minimal and the environment, while harsh, is controlled.

This also provides a pathway for Kodiak to later move into highway trucking by getting real world experience with their technology.

Inflection Point

Having witnessed firsthand the transformation of the taxi industry in San Francisco and Austin, where Waymo's robotaxis have become increasingly commonplace, the autonomous vehicle revolution is no longer theoretical, it's happening now.

Autonomous vehicles are right at their inflection point in becoming commonplace, similar to what has happened to AI in the last year and half.

In Austin, Waymo robotaxis account for 20% of all Uber trips (having launched just this year), while in San Francisco (with a market share of 27%), these driverless vehicles navigate some of the world's most complex urban environments daily.

What strikes me most is how quickly residents in my home city adapted to autonomous vehicles. The initial novelty quickly gave way to practical acceptance as people experienced the convenience and reliability of driverless rides.

I took my first robotaxi ride during SXSW. Since then, everyone who has taken one in Austin, has had only positive things to say about the technology (when applied properly- don’t get me started on Tesla).

Going back to my AI analogy, it is clear what the future is, and it is these vehicles.

If you haven’t ridden in a Waymo, do yourself a favor and try one, if only to understand the investment opportunity.

Since seeing is believing, here is a compelling video demonstration that shows Kodiak's trucks actually working in the oilfield, hauling frac sand across 21-mile routes in the challenging Permian Basin environment.

These are fully functional autonomous vehicles operating in commercial service.

This makes up the most compelling aspect of Kodiak's industry traction: its partnership with Atlas Energy Solutions.

In June 2025, Atlas took delivery of two additional driverless trucks, bringing their autonomous fleet to four vehicles capable of operating up to 24/7.

Atlas hasn't just bought four trucks as a trial. They've placed a firm order for 100 trucks and are actively expanding their autonomous fleet.

Atlas President and CEO John Turner has stated: "We plan to continue adding Kodiak Driver-powered trucks to our fleet helping to strengthen our long-term competitiveness".

This isn't pilot program language. It's the commitment of a customer who has seen the technology work and wants to scale it across their operations.

Atlas operates 120 traditional trucks and has extensive private lease road networks spanning the Permian Basin.

They are looking to replace a large majority of them with Kodiak’s vehicles.

I’m not sure you can get a bigger stamp of approval than this that the technology is ready for the prime time.

The economics are compelling for customers: autonomous trucks can operate continuously (limited only by maintenance and refueling), don't require driver wages or benefits, and eliminate the challenge of recruiting drivers in the miserable Permian basin heat.

This economic advantage can be applied in many other commercial and industrial settings, including the ultimate goal of replacing long haul truckers, across all of America and the rest of the world.

Conclusion

In summary, AACT’s merger with Kodiak Robotics offers a rare blend of downside protection and significant upside potential, thanks to its near-trust-value trading price and Kodiak’s proven commercial traction in autonomous off-road trucking.

With real revenue, a major customer commitment from Atlas Energy Solutions, and a business model that sidesteps regulatory hurdles facing highway autonomy, Kodiak is positioned at the forefront of the next wave in autonomous logistics.

As the market’s enthusiasm for AI spills over into real-world automation, this SPAC stands out as a compelling, asymmetric opportunity for investors seeking both safety and growth in a rapidly evolving sector.

Finally, if you really want to gamble, this SPAC also has warrants available for purchase for $1.25.

P.S. check out their latest slide deck to learn more about the company.

https://www.sec.gov/Archives/edgar/data/1853138/000119312525157100/d903176dex991.htm

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