Some Tesla cars have already been in the drain.

That photo shown, is either one of three things -
1. photo shopped image
2.the guys working on the rear end are midgets
3. Tesla cars use semi truck size disc brakes.

 

Tesla will wind up just like the real estate market before the crash in 2008 and the company is already starting to turn"upside down".

You may be right, but of course many folks think otherwise. Are you putting your money where your mouth is and shorting the stock?

 

Tesla stock lost 2 more points today and it's down over 19% since last Wednesday.

Facebook also list 2 more points and it's down 16% since last Wednesday. Tesla and Facebook are both overvalued and they cannot stay afloat for much longer.

In fact, most of the Bay Area's economy is fueled by government money of some sort and it's a matter of time before it crashes. However, the nice thing is that housing costs will drop like a rock.

 

 

That scene never gets old....lol

 

https://techcrunch.com/2018/08/07/elon-musk-tesla-private-tweet/

Tesla CEO Elon Musk is thinking about taking the company private, he said in a Tweet this morning. More specifically, he said he may buy back the company for $82 billion (at a share price of $420 plus debt), and already has the funding to do so.

https://www.thestreet.com/investing...g-taking-tesla-private-at-this-price-14676297

Trading of Tesla (TSLA - Get Report) shares were halted after CEO Elon Musk tweeted that he might take the electric car company private, raising ethical and legal questions about whether the tweet could be regarded as an effort to influence the share price.
...
Harvey Pitt, the former Securities and Exchange Commission chairman, told The Street in a telephone interview just after the tweet that if the purpose of the tweet was to boost the share price, and it was untrue, that is considered securities fraud.

"What occurred here is highly unusual," Pitt said. "if this were solely an effort to artificially move the price of the stock, it would be manipulative. And if the claims [in the Tweet] aren't true, it would be fraud."

 

Wondered how much Musk was going to get away with.. They have some convertible bonds coming due at 357, need the stock price to be up for that and others. The 2Q 10Q data implies that things are worse financially but the TSLA bulls stampede up at the slightest breath of positive news while ignoring traditional financial metrics. But heck, maybe he'll just sell it to the Saudis.

We will see..
https://seekingalpha.com/news/3379457-tesla-trading-live-updates

 

But heck, maybe he'll just sell it to the Saudis.

I can see the conspiracy theories now... Oil rich Saudis buy Tesla motors to protect their hold on selling oil. Tesla was getting to close to making the internal combustion engine obsolete.

 

I have TSLA stock but sold some today as the stock took off. Unfortunately I got out wayyyy too soon, at 355 instead of 380. Gawd I hate when that happens. At least I still have some, so did get a piece of the action today.

 

I can see the conspiracy theories now... Oil rich Saudis buy Tesla motors to protect their hold on selling oil. Tesla was getting to close to making the internal combustion engine obsolete.

The Saudis have publicly declared that they're preparing their economy for post-oil. They correctly see the end in sight for oil and still have the money to try to get into something else before that end arrives. It's a toss-up whether that can really work, to just buy yourself into a new economy. But they basically have no choice except to try.

 

I can see the conspiracy theories now... Oil rich Saudis buy Tesla motors to protect their hold on selling oil. Tesla was getting to close to making the internal combustion engine obsolete.

Don’t know about conspiracy theories-Saudi Wealth Fund reported taking a 3-5% stake in TSLA today.

 

I was thinking about back in the 60's and 70's, and all of the theories about the gas companies buying up the 100MPG carburetor patents.

 

I can see the conspiracy theories now... Oil rich Saudis buy Tesla motors to protect their hold on selling oil. Tesla was getting to close to making the internal combustion engine obsolete.

Electric cars won't do much to get the oil and gas industry.out of the picture.

Most of the electric power in California comes from natural gas which is produced by the oil industry.

 

This is the news from today:
https://www.msn.com/en-us/news/mone...ence-tesla-critics/ar-BBLDmFU?ocid=spartanntp

 

The news media here in the S.F. Bay Area has been "Beating Around the Bush" about Elon Musk's intentions calling his move to make Tesla a private company an act of "corporate governance".

It's more like preparing the company for some kind of default under Chapter 11 or 13.

 

The news media here in the S.F. Bay Area has been "Beating Around the Bush" about Elon Musk's intentions calling his move to make Tesla a private company an act of "corporate governance".
It's more like preparing the company for some kind of default under Chapter 11 or 13.

Ch 11 might be the best thing for the company as a going concern but it would pop the 'Elon' bubble and force some very unpleasant things for shareholders and debt holders (like suppliers). A new, debt-free TSLA would be a serious player in the BEV arena. Little things like suppliers taking pennies on the dollar for single source parts would kind of put a damper on that scenario. Not to mention lots of fanboy investors left holding the bag.. A new TSLA would have to deliver on hard numbers and BEV is still hard to compete with ICE and TSLA still sucks at manufacturing.

It's hard to know what Musk in thinking here but some scenarios floating around are:

He has to pump up the stock price to avoid paying off convertible bonds in cash instead of shares. Hello SEC.
He is rolling the dice to squeeze out some big short sellers that publish negative things about TSLA - a lot, but not all unfounded. Those things hold the stock price down and throw shade on credit ratings etc. that they are going to need according to some.
He is fighting a hostile takeover by jacking the stock prices via tweets to the faithful.
Taking it private means no more scorn for losing money every quarter. Don't know why that is a thing since.. you know.. losing money.

Finally, taking it private at $420 (heh heh - 420, weed day - heh). Why would you pump the stock $$ for a LBO? Elon is not like the rest of us.

It's hard to know for sure. Players like volatile stocks and this one is great for that. It's not my style but I enjoy the drama and have learned a lot about the investing psyche. The shorts on Seeking Alpha and others fervently point out how lousy the financials are and the longs there say it doesn't matter because the point of it all is to save the world by getting everyone off fossil fuels with super-tech cars that drive themselves and even allow owners to send them off on autonomous Uber runs, making money while you sleep. (I'm not making this up).

The huge thing that TSLA has going for it is Elon and a rabid fanbase - owners and hangers-on alike. These guys will accept a lot of concessions in support of the 'mission' i.e. to save the world. A look at Tesla Motors Club or Model 3 Owners Club shows steadfast support of TSLA even when waiting forever for cars, getting some really shoddy units, having weird problems and much more. But most all of them love the cars, the cachet and the TSLA mystique. Go figure. As long as TSLA has that going for it, it will be hard for them to fail. Example:
Reserve early.
Wait 2 years.
Send money to TSLA.
Find that others are before you in line.
Find that you have to pay in full before seeing your car (in TX and other places).
Find lots of fit/finish/paint issues
Find that you have to get those fixed after taking delivery - it may take awhile.
Software issues/missing features - no problemo! OTA updates. Just like Windows!
But - Hey! It's a Tesla!!

I drove a friend's Bolt last weekend. Except for the crappy seats it was a great BEV. The one-pedal drive mode is awesome. Push to go, release to slow. When you get the hang of it, you can drive without using the brakes at all. Slowing the car recharges the battery. Nothing lost to brake friction/heat.

I've also driven a Model S. Not what I would call 'luxury' interior but a nice ride. $120K hmm.. I just don't see it. My buddy that owns it is a fan but as a businessman, doesn't use the vaunted SuperCharger network. After a few trips, he realized that adding hours to his trips wasn't the best use of his time. He drives the S local, drives a Q5 when we meet in the Hill Country...

And back to the original subject, I don't see $72billion valuation (420 buyout) either. Dumb money. Buy GM for $50bn and use the rest to fix the seats in the Bolt.

 

Ch 11 might be the best thing for the company as a going concern but it would pop the 'Elon' bubble and force some very unpleasant things for shareholders and debt holders (like suppliers). A new, debt-free TSLA would be a serious player in the BEV arena. Little things like suppliers taking pennies on the dollar for single source parts would kind of put a damper on that scenario. Not to mention lots of fanboy investors left holding the bag.. A new TSLA would have to deliver on hard numbers and BEV is still hard to compete with ICE and TSLA still sucks at manufacturing.

It's hard to know what Musk in thinking here but some scenarios floating around are:

He has to pump up the stock price to avoid paying off convertible bonds in cash instead of shares. Hello SEC.
He is rolling the dice to squeeze out some big short sellers that publish negative things about TSLA - a lot, but not all unfounded. Those things hold the stock price down and throw shade on credit ratings etc. that they are going to need according to some.
He is fighting a hostile takeover by jacking the stock prices via tweets to the faithful.
Taking it private means no more scorn for losing money every quarter. Don't know why that is a thing since.. you know.. losing money.

Finally, taking it private at $420 (heh heh - 420, weed day - heh). Why would you pump the stock $$ for a LBO? Elon is not like the rest of us.

It's hard to know for sure. Players like volatile stocks and this one is great for that. It's not my style but I enjoy the drama and have learned a lot about the investing psyche. The shorts on Seeking Alpha and others fervently point out how lousy the financials are and the longs there say it doesn't matter because the point of it all is to save the world by getting everyone off fossil fuels with super-tech cars that drive themselves and even allow owners to send them off on autonomous Uber runs, making money while you sleep. (I'm not making this up).

The huge thing that TSLA has going for it is Elon and a rabid fanbase - owners and hangers-on alike. These guys will accept a lot of concessions in support of the 'mission' i.e. to save the world. A look at Tesla Motors Club or Model 3 Owners Club shows steadfast support of TSLA even when waiting forever for cars, getting some really shoddy units, having weird problems and much more. But most all of them love the cars, the cachet and the TSLA mystique. Go figure. As long as TSLA has that going for it, it will be hard for them to fail. Example:
Reserve early.
Wait 2 years.
Send money to TSLA.
Find that others are before you in line.
Find that you have to pay in full before seeing your car (in TX and other places).
Find lots of fit/finish/paint issues
Find that you have to get those fixed after taking delivery - it may take awhile.
Software issues/missing features - no problemo! OTA updates. Just like Windows!
But - Hey! It's a Tesla!!

I drove a friend's Bolt last weekend. Except for the crappy seats it was a great BEV. The one-pedal drive mode is awesome. Push to go, release to slow. When you get the hang of it, you can drive without using the brakes at all. Slowing the car recharges the battery. Nothing lost to brake friction/heat.

I've also driven a Model S. Not what I would call 'luxury' interior but a nice ride. $120K hmm.. I just don't see it. My buddy that owns it is a fan but as a businessman, doesn't use the vaunted SuperCharger network. After a few trips, he realized that adding hours to his trips wasn't the best use of his time. He drives the S local, drives a Q5 when we meet in the Hill Country...

And back to the original subject, I don't see $72billion valuation (420 buyout) either. Dumb money. Buy GM for $50bn and use the rest to fix the seats in the Bolt.

If you were good at seeing, things would not get to here to begin with.

 

Tesla might be better off just selling out its manufacturing assets to one of the existing well established auto makers on an "as is / where is" basis.

Most of my work (in the elevator business while in private industry and with San Francisco's transit agency) has been in power electronics and motor controls so I'm familiar with electric vehicles.

My opinion is that Tesla's business model of building a complete car (the body and chassis) around the platform of an electric propulsion system was seriously flawed. Maybe Tesla would have been better off just building the propulsion and selling it to an auto maker for integration into their body and chassis.

There are many companies that make propulsion systems for electric vehicles (mainly buses or rail cars powered from a trolley line and hybrid electric buses) for integration into a customer's existing chassis, but they're business model does not include an attempt to build a complete vehicle.

There were also well established EV makers (Ford and GM) in the market prior to Tesla, but the market for EVs was (and still is) pretty stagnant. So I'm wondering how Musk thought he had a better plan to re-invent the wheel (no pun intended).

 

So I'm wondering how Musk thought he had a better plan to re-invent the wheel (no pun intended).

Arrogance?

 

If they could only design a car like this 1912 Baker Electric that is powered by its solar cell panel. I doubt many Americans would want to live with that kind of (imagined) performance. Glad I have not invested in Tesla Motors.

View attachment 157087

I am pretty sure that car was fitted in the 1950's by International Rectifier to promote their solar cells.

They made both selenium and silicon cells bach then.

This caught my interest? I thought solar panels just came around recently