Justice Department Urged to Investigate Amazon for Possible Criminal Obstruction, Report Reveals
A congressional inquiry calls for an investigation into Amazon's alleged obstruction of an antitrust probe, raising serious concerns about anti-competitive conduct.
Morgan Stanley forecasts rising nickel prices will impact the cost of electric vehicles.
A congressional committee has requested a formal investigation into Amazon.com Inc. for possible criminal obstruction of Congress, according to a report by the Wall Street Journal, which cites a letter and insiders familiar with the issue.
On March 9, bipartisan members of the House Judiciary Committee sent a letter to U.S. Attorney General Merrick Garland, urging action, the WSJ reported.
Amazon reportedly declined to provide requested information during the Antitrust Subcommittee’s probe into its competitive practices, an act characterized as an attempted concealment of falsehoods regarding third-party sellers hosted on its platform.
Attempts to reach Amazon and the Justice Department for comment were unsuccessful, according to the WSJ.
The congressional letter states, “Amazon consistently sought to impede the Committee’s efforts to uncover the truth about its business operations. Accountability is essential.” The committee highlights potential criminal behavior by Amazon and certain executives, though it does not specify individuals.
Nickel Prices Skyrocket, Impacting Electric Vehicle Production Costs
While the phrase "A nickel’s not worth a dime anymore" may no longer ring true for the coin, the metal nickel has surged in value.
Following disruptions in supply chains and chip shortages, automakers now face soaring nickel prices, a critical component in electric vehicle (EV) battery production.
Nickel prices exceeded $100,000 per metric ton on the London Metal Exchange before trading was halted. The metal’s value soared 250% over two days and is unlikely to resume trading until at least Friday.
Russia’s invasion of Ukraine has been a significant factor, as Russia ranks as the world’s third-largest nickel producer after Indonesia and the Philippines. Additionally, a short squeeze has intensified the price surge.
Nickel is essential in manufacturing lithium-ion batteries for EVs, representing a major portion of production costs. Morgan Stanley analysts warn that the spike in nickel prices could add approximately $1,000 to the cost of each electric vehicle. They also predict a nickel shortage by 2026 that will worsen through the decade, a forecast made prior to the conflict in Ukraine.
Analysts from Morgan Stanley advise investors to temper expectations regarding automakers’ earnings and the projected growth in EV market penetration over the coming years.
Although many automakers have secured nickel prices through long-term contracts, mitigating immediate effects, the rising costs may challenge the pace of the global shift to electric vehicles.
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