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PostSubject: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyThu 16 Aug 2018, 10:05 pm

How long can hyped up Musky get away with being permanently unprofitable ? What will the Saudis say about this ?

Is TESLA going down big time ? Elon_musk_cartoon

AUG—11—2018 04:24PM EST

Tesla is nearly $10 billion in debt and Elon Musk is buying Tesla stock using loans he got by putting up shares of Tesla stock as collateral. What the hell is going on here?

Elon Musk, your friend and mine, has a problem. He wants to take his company Tesla private, but it turns out he can’t just, like, do that — he has to raise a bunch of money, get permission from his company’s shareholders, and inform the Securities and Exchange Commission of his plans. But because Elon Musk is Elon Musk, he did none of those things and instead just tweeted that he was “considering taking Tesla private at $420” per share, and that he already had “funding secured.”

Following Musk’s tweet, Tesla’s stock rose by 10 percent, dashing the dreams of the Tesla short-sellers that Musk so hates. Things were good, if you were Elon Musk.

Then, pretty much all hell broke loose. On August 8, the Wall Street Journal reported that the SEC was looking into whether Musk’s announcement was actually true or not, and if so, why he hadn’t run it by them first. Then a day later, Bloomberg clarified that the SEC had already been scrutinizing the company due to its “public pronouncements on manufacturing goals and sales targets” that, historically, it hasn’t managed to meet, and that Musk’s tweets had given the agency even more stuff to look into. And today, August 11, Reuters revealed that Elon’s Twitter Fingers had earned he and the company a pair of lawsuits — one accusing Musk of making false statements that Tesla didn’t correct, and another accusing Musk and Tesla of manipulating the company’s stock price.

Amid the storm, Tesla’s Board of Directors issued the following statement:

Last week, Elon opened a discussion with the board about taking the company private. This included discussion as to how being private could better serve Tesla’s long-term interests, and also addressed the funding for this to occur. The board has met several times over the last week and is taking the appropriate next steps to evaluate this.
So, there you have it. Tesla might actually be going private, and also, never tweet. What’s interesting, to me, however, is why Elon Musk might want to take Tesla off the stock market. For one, he receives most of his salary in the form of Tesla stock rather than money, and his compensation is tied to achieving various company growth goals. Privately owned companies aren’t subject to as many public filing requirements as publicly traded ones are, and share prices are much less volatile when off the market.

Is TESLA going down big time ? Https_outline-prod.imgix

Meanwhile, some of Musk’s Tesla shares are tied up in an, uh, interesting financial situation. In Tesla’s most recent quarterly SEC filing, the company disclosed that, “Certain banking institutions have made extensions of credit to Elon Musk [...] a portion of which was used to purchase shares of common stock in certain of our public offerings and private placements.” The filing adds that Musk’s loans were “partially secured by pledges of a portion of Tesla common stock currently owned by Mr. Musk. If the price of our common stock were to decline substantially,” Musk might be made by his creditors to sell his Tesla shares, which “could cause the price of [Tesla’s] common stock to decline further.”

In that same quarterly report, Tesla posted a net loss of $1.5 billion for the first six months of 2018 — for comparison, by June of last year, the company’s net loss was roughly half that amount.

So Elon Musk, in order to buy more shares of Tesla stock than he already owns, got a loan for himself using his Tesla stock as collateral? Global finance is truly an incomprehensible beast. However, the fact remains that if Tesla’s stock suddenly dropped precipitously, Elon Musk might not be able to cover his debts. In this sense, taking Tesla private would be very good for Elon Musk, whose Tesla stock is, as we’ve established, to at least a certain degree tied up in loans for more Tesla stock. Tesla itself, meanwhile, is approximately $10 billion in debt.

Though Musk continues to make promises about Tesla’s production and revenue that never manage to come true, he also seems to have access to endless source of funds to cover his forays into solar energy, hyperloops, tunneling, artificial intelligence, and putting computers in people’s brains — not to mention literal rocket science with SpaceX.

Bit more of the decline and fall of Musky here
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyThu 16 Aug 2018, 10:22 pm

Will the Saudis seize control of the little Tesla deep in debt company ?

Will they then swing it over to making the much more practical hydrogen vehicles as people get sick of the inconvenience of the dangerous electrics loaded with lithium fire bombs ?

Will the USA allow this ?

If the Saudis do help Elon Musk take Tesla private, the company could actually take over the world
MATTHEW DEBORD AUG 14, 2018, 6:24 AM

Is TESLA going down big time ? 04.30.2018_Tesla_cartoon

The Saudi sovereign wealth fund could be the key player in taking Tesla private, according to a recent account from CEO Elon Musk.
The Saudi fund is potentially enormous, even with much of its value bound up in a troubled IPO.

Depending on how a possible deal shakes down, Tesla and Musk could see a massive funding boost, freed from market constraints.
On Monday, Tesla CEO Elon Musk provided some additional detail on his plans to take Tesla private.

The key takeaway is that the deal hinges on the Saudi sovereign wealth fund’s willingness to finance a buyout.

Secondarily, the potential deal size isn’t anywhere near $US80-billion-plus numbers that have been discussed; instead, Musk is essentially trying to bring all Tesla’s major shareholders along and give small-time or restricted investors the chance to bail out at $US420 per share.

Up to this point, Tesla has been a rather small company with a rather large financial value: it’s $US60-billion market cap makes it the largest US automaker, as measured by the stock market.

Prior to the now infamous Musk go-private tweet of last week, this mismatch had led a lot of Tesla enthusiasts to go into heavy futurist mode and predict that a company that made 100,000 vehicles in 2017 would take over the world, becoming a massive automaker both in terms of production and sales.

And that’s not even considering the sideline businesses in solar power and energy storage.

The Saudi factor could defeat any scepticism around that prospect. The biggest impediment to Tesla growing by true leaps and bounds was the capital-intensive nature of its business. Multi-billion-dollar new factories would need to be built, for example.

But the Saudi fund – it’s officially known as the Public Investment Fund and has been around since the early 1970s – is legitimately enormous. Its total heft is debated, largely due to much of it being tied up in Aramco and its troubled IPO, but it could at some point be worth $US2 trillion. In any case, it’s still capable of accessing more than $US100 billion, making a Tesla equity buyout an easy lift.

What’s tantalising about such a deal is that it would provide Musk with a veritably unlimited funding partner – and ironically place the globe’s largest oil economy in a pretty big seat at the table to world’s most influential sustainable transportation and energy enterprise.

The public markets had imposed a sort of ceiling on Tesla’s expansion, based on a balance sheet that represented a certain measure of equity value and debt. With that possibly erased thanks to some of the deepest pockets in the known universe, Musk might actually be able to set his sights higher with Tesla that he has with SpaceX and its Mars ambitions.
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyThu 16 Aug 2018, 10:34 pm

Has the hype master outsmarted himself ?

Is TESLA going down big time ? Df_HQof_EW4_AA7_MFM
Reminds you of the Muskstruck trolls here

Musk Just Admitted That His Buyout Talks With The Saudis Began Before He Bought Stock
Anton Wahlman Aug. 14, 2018 12:42 PM ET|338 comments  | About: Tesla, Inc. (TSLA)

Monday morning, Tesla CEO Elon Musk publishes a blog post elaborating on what led him to say “funding secured” and related background.

In this blog post, Musk makes a stunning admission, writing that his discussions with the Saudis began already in 2017 - BEFORE he bought stock in the company.

Let’s open the Insider Trading 101 book: CEO is in talks to have his company bought up, and buys stock in advance of the announcement. Hmm.

Have the rest of the world simply misunderstood these laws? Or is it now okay for everybody who knows about buyout discussions to buy stock in advance?

Paging the SEC. Can they please clarify?

Tesla (TSLA) CEO Elon Musk made a stunning admission in his Monday morning blog post: Update on Taking Tesla Private

The issue concerns when his talks with the Saudis began and how this timing relates to Musk buying shares of Tesla in the open market. Here is what he wrote in his blog post:

“Going back almost two years, the Saudi Arabian sovereign wealth fund has approached me multiple times about taking Tesla private. They first met with me at the beginning of 2017 to express this interest because of the important need to diversify away from oil. They then held several additional meetings with me over the next year to reiterate this interest and to try to move forward with a going private transaction.”

As you can see in the quote above, Musk had discussions about going private since early 2017 and going into 2018. That obviously precedes Musk buying stock in his own company in May and June of 2018, as has been well-documented and reported in Musk’s own filings and in the news reports that followed: Elon Musk just bought another $25 million in Tesla stock

The fact that Musk was having discussions with the Saudis starting about a buyout already in 2017 was obviously not known by the investing public. Yet, Musk was a Tesla executive with that information in hand, who bought stock during that time.

How is this not the most flagrant per-se violation of insider trading laws imaginable? The SEC and DOJ go after people all the time, who buy stock in a company in advance of a buyout, if they had access to privileged information about such discussions.
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyFri 17 Aug 2018, 11:13 am

Now what the Greeny Types HATE - FACTS because it destroys their delusional fantasies.

Shoddy quality control and using drivers as test guinea pigs to find the many faults in their TESLA cars will result in the HUGE auto manufacturers like Mercedes and Volkswagen etc wiping the floor with TESLA.

Is TESLA going down big time ? CR-_Cars-_Inline_Hero-_Fire-_Truck-_Tesla-_Crash-5-18
Another head on TESLA crash

The Weird Mistakes Killing Tesla  or the Decline and Fall of TESLA
By Rob Enderle Aug 13, 2018 11:06 AM PT

Is TESLA going down big time ? Xl-2016-elon-musk-1

tesla may be failing due to self-inflicted wounds rather than competition

Tesla is trending to fail spectacularly. (CEO Elon Musk actually has an impressive failure history.) Tesla has been burning cash at an unsustainable rate, and it keeps making avoidable mistakes that weaken it.

Here's what is weird: You'd think the firm's biggest problem would be that every large car maker was working behind the scenes to kill it. However, with the exception of the dealerships (which I'll get to), the car companies for the most part appear to have worked harder to emulate Tesla than to destroy it.

I expect that if Tesla fails, all fingers will point to Musk and the executive team as problems because we focus more on blame than understanding the cause of a mistake. This is problematic, because folks then don't learn from mistakes -- they just learn to dodge blame and avoid risks, which would be the wrong lesson to take away from this.

In short, Tesla's biggest problem is itself.

Tesla vs. Top Gear
Top Gear used to be one of the most popular automotive shows in the world until one of its hosts slugged a producer for not having the right food and the entire cast left.

Every week the show hosts pretty much abused themselves, and a bunch of cars, for our humorous enjoyment. It was the most popular car show in the world. The hosts were not race car drivers, mechanics, or automotive engineers. They were basically comedians using cars as a vehicle to entertain a lot of people.

They liked some cars (Jaguars, Porsche, etc.) and were generally down on American iron and one or two European brands. When they tested the Tesla sports car they didn't like it. I can't blame them, because when I tested the Tesla sports car I didn't like it either.

Based on a Lotus, which isn't known for reliability but is known to be one of the best track cars on the planet, it was kind of a rattling mess that sucked on a road track but would kick butt 0-60.

They didn't like the car, so Tesla -- instead of taking their opinion in stride -- sued the show. The company lost (apparently its similar fight with The New York Times played a role), but the litigation focused people on the review that damaged Tesla's image, not only as a car company but as a rebel brand. Rebels don't sue comedians.

Tesla Quality
One of the big advantages Tesla had was in approaching the market with nearly a clean slate. However, in manufacturing, decades have gone into creating processes that result in high-quality cars. What a lot of us thought Tesla did was just get rid of the processes that made no sense in their ramp-up to manufacture cars, but what it appears to have done is start everything from scratch. That resulted in relatively low quality for the initial runs of every car Tesla made.

You'd think that by the time the Model 3 was released, this issue would have been sorted, but quality issues surrounding the Model 3 seem to be in line with, if not worse than, those that plagued the Model S initially.

Adapting quality controls and accountability in line with Toyota should have been a goal for the firm, but apparently it was not. There is no price point where adequate quality is optional. In addition, because problems related to fit and finish, consistency in materials, and panel gaps had to be corrected in the field under warranty, Tesla's ability to generate a profit was significantly compromised. Quality should have been job one. Instead, it constantly appeared to be an afterthought. For a luxury brand, being ranked toward the bottom on quality is never good.

Tesla X
While the Tesla S and Model 3 are really good cars in their respective segments (initial quality aside), the Model X made almost no sense whatsoever. (Consumer Reports called it "Fast and Flawed.") The easy path to creating a good SUV is to start with something like a Land Rover in terms of design target and then refine it to make the result uniquely yours.

The Jaguar F-Pace is a good example, in that it borrows from the Range Rover with features but has more of a performance/design focus allowing it to stand out against its Range Rover peer. Granted, it helps that Tata Motors owns both Jaguar and Range Rover.

SUVs basically are more masculine minivans, which means they need to be very reliable, they need to be as effective as trucks (carrying both people and materials), and they need offroad skills (that folks mostly won't use but do consider when buying).

Instead, what Tesla appeared to create was a pregnant Model S. Initially, the back seats didn't even fold down, so you couldn't use it to carry materials. It had gull wing doors that had a very high failure rate (way too complex), a windshield that was wicked expensive to replace -- but so big that getting hit by a rock was a given -- and no offroad chops at all. In short, it was an SUV that sucked at being an SUV. How do you miss THAT meeting?

The Autopilot Fiasco
When I was growing up, a story about cruise control made the rounds. One version went like this: A guy came to the U.S. and wanted to tour the country on the road. He rented an RV, and when getting a briefing about the features, asked about the cruise control. The sales guy told him it was kind of like a plane's autopilot. So, the guy went out on the road, set the cruise control, and went back to make some coffee. It ended really badly for the driver, the RV and the rental company.

The industry lesson, whether these incidents actually took place or not, was "don't call cruise control 'autopilot,'" because people will do stupid things.

So, what does Tesla call its adaptive cruise control? "Autopilot." The feature has been implicated in some fatalities, and Consumer Reports even asked Tesla to change the name. Tesla refused. One wonders whether Tesla would rather have dead customers then have to change a foolish name.

Dealer Issues
In the U.S. dealers move cars. On much of the East Coast, the folks who own dealerships are politicians. Tesla rolled to market with a company store model that was at least as problematic as coming to market with an electric car.

It meant Tesla had to set up and fund the entire sales channel as opposed to recruiting dealers that largely would self-fund the effort. The politicians who owned dealerships moved against Tesla and were able to pass laws barring Tesla stores in some states. Granted much of this activity was anticompetitive and should have been illegal, but it still created a huge drag on sales and expansion, which a new car company doesn't need.

Oh, and the stores, based on recent reports, perform very poorly compared to the traditional dealerships with regard to selling cars.

Solar City
Solar City, another Elon Musk company, recently was in danger of going under. To save the firm, Tesla bought it. Tesla, which has been unprofitable, increased its risk of failure by absorbing another unprofitable company. Two unprofitable companies, when added together, don't make a profitable company.

For the most part, the deal put more pressure on Tesla's income statement, further reduced its reserves, increased the firm's complexity, and made it less likely to survive. Now there should be a reasonably high synergy between solar power and electric cars, but that synergy has not emerged yet at Tesla. (Also, Solar City has been having execution problems of its own.)

Going Private
Going private isn't a bad idea. It worked really well for Dell. However, Dell was profitable, and assets exceeded liabilities, which means there was such a thing as stockholder equity.

However, Tesla's liabilities exceed assets by billions, which means there isn't such a thing as stockholder equity. So how do you fund the effort? More importantly, bringing up the possibility -- which did spike the stock and really screw with short sellers -- has triggered scrutiny of Tesla's financials and caused a lot of mini-heart attacks based on what people saw. It also may have triggered an SEC investigation, and those seldom end well.

Both things could scare customers away from Tesla at a time when they are desperately needed to get the company into the black before the cash reserves run out.

Self-Driving Capability
Tesla recently announced that it was developing its own autonomous car processor and planned to displace its primary vendor of this technology, Nvidia. As noted, Tesla currently is short on operating funds and it recently has begun to beg suppliers for kickbacks in order to save the company.

To create Nvidia's current autonomous car platform (which is 10x the speed of the one Tesla currently uses) took five years and around US$2B (or about what Tesla now has in short term assets).

They has neither the time nor the money, and this is an area in which it can't scrimp on quality. At a time when the firm should be husbanding its cash and focused like a laser on getting the company profitable, why start an expensive development process to reinvent a very expensive component?

In addition, it faces a bigger problem: charging infrastructure, particularly in city centers. Currently folks have mixed opinions on autonomous driving, but all seem to agree that the fear of not being able to charge an electric vehicle is one of the biggest concerns limiting sales.

Wrapping Up
Given its size and influence, Tesla's failure would be catastrophic for a number of reasons. It likely would slow significantly the development of electric cars, which are needed to combat global warming (watching California burn this month has certainly driven that need home).

It likely would begin a cascade of failures across Musk's other companies, like SpaceX, which could find it difficult to raise necessary operating funds.

It could cause a sudden change in the stock market, influencing it to become excessively conservative, resulting in a massive broad market correction. It could significantly set back innovation in the U.S automotive industry, accelerating a shift to China as the next big automotive superpower.

The way to fix the company is to stop it from shooting itself in the foot. Get it to avoid unnecessary fights, focus it on profits, bring up quality, reduce distractions and crazy behavior, and operate like a real business, which means making some hard decisions about the names that are used and the sales channel that isn't working well. Tesla doesn't have a ton of time.

By the way, it struck me to look at Tesla's board of directors. Ironically, there is not a single car, manufacturing, sales, or transportation expert on it. I think I've just found the core of Tesla' problems.
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyMon 20 Aug 2018, 9:31 am

Are TESLAS really mobile coffins just waiting to bury you ? Complete with self contained cremation.

Won't Volkswagen and Mercedes etc have a field day with TESLA's reputation as mobile coffins complete with self contained cremation ?

Is TESLA going down big time ? Tesla-model-x-involved-in-fatal-fiery-crash-on-highway-101-in-mo

Tesla was hit by an accident on a highway in the United States where the X model was hit by a concrete barrier that completely destroyed the car while it was in a self-driving position. It was raised in the air before the batteries burned.

The accident resulted in the death of the driver of the car immediately.

Last edited by Patriot on Mon 20 Aug 2018, 9:47 pm; edited 1 time in total
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyMon 20 Aug 2018, 5:47 pm

Sorry Patriot, I have no idea what Tesla is all about. Smile

I checked Wiki Link and can't be bothered reading all the guff.

Please explain in an abbreviated form ... dot points would be ideal.

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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyMon 20 Aug 2018, 9:52 pm

Tesla is a hyped up thing trading on the Greeny Types' gullibility about the Global Warming HOAX.

Tesla has a strange group of blinded by fantasy adoring devotees. To them TESLA can do no wrong.

But there is no making it up as you go that unproven TESLAS loaded with lithium fire bmbs are downright dangerous.

Is TESLA going down big time ? Df62_VPKUYAAJm_NQ
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyTue 21 Aug 2018, 10:42 am

Ah, so it is a Greenie thing. Rolling Eyes
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyThu 30 Aug 2018, 5:23 pm

So it will sell to all and everybody on the average income.

Is TESLA going down big time ? Hearty-laugh
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PostSubject: Re: Is TESLA going down big time ?   Is TESLA going down big time ? EmptyFri 31 Aug 2018, 8:33 am

Currently Musk and co are not doing well...  but that could easily change.
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