Tag Archives: Tesla

Teslian eFleas, by Eric Peters

Tesla makes itself part of China’s surveillance state. From Eric Peters at theburningplatform.com:

When corporations get into bed with government, it’s uswho get the fleas. Obamacare, for instance.

Big Med plus Big Government.

Sometimes, you can’t actually see the fleas. But they’re there, just the same.

An example of this unwholesome symbiosis has just emerged – in China. But it involves an American company, Tesla – which sells the same cars here.

Turns out Tesla – which builds electric cars but makes money by leveraging government mandates  – has set up its EVs to live-feed information about where each of their cars is at any given moment directly to the Chinese government.

Their car italicized to make the point that it’s not really your car when someone else has open access to it  – and so, to your life. The car tracks your movements, records where you’ve been, how long you stayed.

The government takes note.

According to the Associated Press, which broke the story, the Chinese government merely wishes to obtain “data points” for the purpose of “infrastructure planning” and – of course – to “improve public safety.”

How isn’t specified.

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Obamacare on Wheels, by Eric Peters

If the government has to force us into electric cars, it will do so. From Eric Peters at ericpetersautos.com:

Ferrari just reported a third quarter sales sales uptick of nearly 11 percent, which it attributes to demand for its V8 powered Portofino. Sales of the V12 Superfast rose 7.9 percent. The best-selling three cars in the U.S. are big trucks – the Chevy Silverado, Ford F-150 and Dodge Ram 1500. These are not being produced at bayonet-point, via mandates – and the people buying them don’t need their palms greased as inducements to buy them.

Contrast this with the sales of electric cars so far this year  – of which there were none.

A number of them did change hands, it’s true. But to describe the exchange as a “sale” is to abuse the language, akin to referring to Bruce as “her.”

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$20 Million Isn’t Much, by Eric Peters

The fine recently meted out to Elon Musk is similar to the meager fines meted out to banks and bankers stemming from the financial crisis. The fines are meager for a reason: the perpetrators are politically connected. From Eric Peters at theburningplatform.com:

If you’re a billionaire.

Count it out. One billion dollars is one thousand million dollars. If you have one thousand million dollars, $20 million is of the same consequence as losing a $20 under a sofa cushion is to the rest of us.

Elon Musk is reportedly worth somewhere in the vicinity of $23 billion. For him, the  $20 million fine imposed by the SEC for fraud amounts to the same as losing a pennybehind the sofa cushions for the rest of us.

So, effectively, a slap on the wrist – for fraud. For actually causing harm.

Contrast the kid-glove treatment meted out to Elon with the NKVD-style inquisition visited upon Martha Stewart – a productive woman whose businesses didn’t have a taxpayer pickpocket division.

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Elon Musk smoking weed has much more dire consequences than you realize, by Simon Black

Is the long rally for tech stocks, like Elon Musk’s joint, going up in smoke? From Simon Black at sovereignman.com:

An insane event on March 2, 2017 likely signaled the top of the current market…

On that day, shares of Snap (SNAP), owner of the popular Snapchat app, went public at a valuation of more than $30 billion.

But it wasn’t the sky-high stock price that made this IPO special. Nor was it the fact that the company’s co-founders, 26-year old Evan Spiegel and 28-year old Bobby Murphy, became multi-billionaires overnight.

What made this IPO special was the fact that it was the first time in US market history that a company publicly offered shares with absolutely ZERO voting rights.

Snap clearly highlighted the fact in its pre-IPO documents… “to our knowledge, no other company has completed an initial public offering of non-voting stock on a U.S. stock exchange.”

Still, investors piled in, knowing they were buying nonvoting shares… essentially granting totalitarian control of the company to two kids.

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Tesla’s Death Dive, by Eric Peters

Tesla and cryptocurrencies are plunging, which means the universe of hope-and-a-prayer investments is shrinking. What are the get-rich-quickers to do? From Eric Peters at theburningplatform.com:

It is beginning.

Actually, it’s been happening for a long time – like a slowly metastasizing cancer. The afflicted can no longer hide the underlying disease.

Tesla is dying.

Elon is panicking – and executives are bailing. Yesterday, the company’s chief accounting officer, Dave Morton, resigned less than a month after taking the job. What do you imagine he  . . . took account of?

Left column, right column. What didn’t add up?

“Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations,” Morton said a statement released by the company in a filing with the Securities and Exchange Commission. “As a result, this caused me to reconsider my future.” Continue reading

As Musk Goes Nuts Publicly, Tesla Bondholders Get Antsy, by Wolf Richter

Bondholders usually get nervous about failing companies before stockholders. That looks to be the case with Tesla. From Wolf Richter at wolfstreet.com:

In terms of Tesla’s survival, this poses a problem.

Tesla shares fell 2.8% to $280.74 on Wednesday. They’re now down about $100 from the closing price of August 7 ($379.57) and down $107 from the high that day ($387.46). This was the moment when CEO Elon Musk had pulled another rabbit out of the hat during trading hours in order to brazenly manipulate up the share price by announcing a blatant lie – that he’d take the company private at $420 a share, “funding secured.” Today, shares closed $140 below the buyout-lie number.

The ludicrousness of his lie that had instantly spread all over the world had an unintended consequence for eons to come: The term “funding secured” can never again be pronounced with a straight face.

As a consequence, Tesla is now steeped in legal issues. It’s not like it doesn’t have enough issues already, with its “manufacturing hell,” as Musk himself called it, that refuses to abate.

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Fool me once, shame on Elon. Fool me twice. . . by Simon Black

How many lies will Elon Musk be allowed to tell before his adoring shareholders turn on him? From Simon Black at sovereignman.com:

There’s no doubt you know the story…

On August 7, in the middle of the trading day, Tesla founder Elon Musk surprised investors with a tweet saying he was considering taking Tesla private at $420 per share (a $72 billion valuation) with “funding secured.” He quickly followed up with “Investor support is confirmed.”

Shares of Tesla soared 13% to $387 on the cryptic social media update from Tesla’s exalted chief.

The news created a media frenzy around the already red-hot company (and prompted the SEC to investigate Musk and Tesla for potentially lying to investors about a takeover). A single tweet – while the market was still open, no less – was an odd and informal way to announce such a major event.

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Did Musk consult Tesla’s board of directors before making this public? Did they even know of his plans to take the company private? Is any of this even true?

It didn’t matter to Tesla’s shareholders, who believe Musk walks on water and his tweets are gospel. So the stock price soared.

And the deal made sense for Musk…

Investors, including himself, would make a fortune.

And he would no longer be bothered by those pesky short sellers, reporting enormous losses to the public and nagging production deadlines (which Tesla continually misses)…

As a private company, Musk wouldn’t even have to ask shareholders’ permission for a $50 billion pay package.

Only, Tesla isn’t going private.

Last Friday, in a blog post (you know the announcement has got to be important if it’s escalated to blog post formality) Musk announced Tesla would stay public.

He gave a bunch of excuses for the decision, including going private would be more time consuming than he realized and that his beloved retail shareholders (his congregation) couldn’t own shares in a private company.

To continue reading: Fool me once, shame on Elon. Fool me twice. . .