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Saudis Appear to Be Key to Taking Tesla Private

Facing lawsuits, SEC probe, CEO Musk offers more details on privatization plan.

by on Aug.13, 2018

Tesla CEO Elon Musk revealed a few details about the plan to take the EV maker private he teased last week.

In a Monday morning blog post, Tesla CEO Elon Musk has offered some critical new details about the plan, first announced last week, to take the battery-carmaker private, pointing to a Saudi sovereign investment fund as the potential source of funding — though he also cautioned it would be “premature” to offer full details at this point.

Last Tuesday, the 47-year-old chief executive set off alarm bells when he posted a tweet declaring his interest in taking Tesla private at a price of $420 per share. The news sent investors scurrying to snap up Tesla stock which quickly approached an all-time high before settling back two days later.

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With virtually no details offered, Musk and Tesla quickly came under scrutiny from analysts, investors and the Securities and Exchange Commission which has begun to probe his comments to see if they violate federal securities law. Tesla now faces two lawsuits, as well, alleging the Tuesday announcement was really a “nuclear attack” on short-sellers. (more…)

Tesla Stock Tumbles Hard as Questions Mount About Proposal to Go Private

Investors are “raising a lot of sensible questions,” while the SEC also begins sniffing around.

by on Aug.09, 2018

Investors -- along with the SEC -- are raising concerns about CEO Musk's proposal to take Tesla private.

Barely two days after euphoric investors started snapping up Tesla stock, buoyed by a tweet from CEO Elon Musk suggesting the company was ready to go private, gravity has set in. After nearing an all-time record, Tesla’s share price settling back to barely above where it started.

While the battery-carmaker’s board – along with at least one major investor — has cautiously backed the idea, saying it will now explore the idea of taking Tesla private, there appear to be more questions than answers. One of the uncertainties is how the SEC is viewing what happened this week, the federal agency set to take a close look at Musk’s suggestion that “Funding (is) secured” to make the transition once Tesla stock hit $420 a share.

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That number was certainly a big jump from where TSLA shares began the day on Tuesday, just over $340 a share. By the end of the day it had rocketed close to Tesla’s record closing of $389.61. But concerns were apparent almost immediately with some analysts pointing, among other things, to the “420” in Musk’s tweet, a number more often used as slang for marijuana.

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Tesla Board Backs Consideration of Musk’s Privatization Plan

Six board members willing to look further at the plan.

by on Aug.08, 2018

Tesla's Elon Musk appears to have the support of the board of directors for his privatization plans.

Just a day after telling Tesla employees, and later the world via Twitter, that he wants to take the EV maker private, CEO Elon Musk appears to be getting support from his board of directors.

Six board members issued a statemen saying they were considering his proposal and that they’d met with him previously to explore the strategy, including “discussion as to how being private could better serve Tesla’s long-term interests.”

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Two other the board members, Kimball Musk, Elon’s brother, and Steve Jurvetson, a venture capitalist, were not part of the statement. Members of the board who signed the statement were Brad Buss, Robyn Denholm, Ira Ehrenpreis, Antonio Gracias, Linda Johnson Rice and James Murdoch. (more…)

Tesla CEO Musk Lays Out Plan to Take EV Maker Private

SpaceX appears to be the blueprint.

by on Aug.07, 2018

Tesla CEO Elon Musk wants to take the EV maker private — at $420 a share.

Sometimes Tesla founder and CEO Elon Musk means what he tweets — in this case, taking the company private at $420 a share.

Earlier today, Musk hopped on telling his millions of followers, “Am considering taking Tesla private at $420 a share. Funding secured.”

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That set off two flurries. One a thread of tweets about everything from what a great idea it is to how followers love marijuana references to how the Securities and Exchange Commission frown on these sorts of pronouncements. (more…)

Musk Tweets Suggests He Could Take Tesla Private

But is his 420 reference a doper joke or a serious price target?

by on Aug.07, 2018

Tesla founder and CEO Elon Musk told the Twitterverse today he was considering taking the EV maker private.

For those in on doper slang, “420” is a familiar reference to marijuana. And to those in the financial community, it’s a number that has many today asking what Tesla CEO Elon Musk might be smoking.

Musk once again set the Twittersphere on fire Tuesday when he sent out a short tweet declaring “Am considering taking Tesla private at $420. Funding secured.”

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Tesla’s stock has been on fire since the automaker released its second-quarter earnings numbers last week, Musk repeating a pledge to deliver both a profit and positive cashflow for the second half of the year. Shares of TSLA were up by another nearly 8.5% as of midday trading, at around $375 rapidly taking aim at the carmaker’s previous record high of $389.61. (more…)

Former Worker Countersues Tesla Over Sabotage Claim

Martin Tripp alleges automaker tried to cover up quality problems.

by on Aug.06, 2018

Former employee Martin Tripp claims he was fired after trying to report problems at Tesla's Gigafactory.

A former employee at the Gigafactory battery plant has sued Tesla after it claimed he committed sabotage and stole intellectual property.

Martin Tripp was fired by the battery-carmaker in June and subsequently sued by Tesla for allegedly sabotaging the company’s manufacturing system and also stealing its intellectual property. In turn, Tripp has filed a whistleblower complaint with the Securities and Exchange Commission, while also filing a lawsuit against Tesla.

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In the lawsuit, the former employee said the carmaker took action after he “raised his concerns about the seemingly exorbitant amounts of scrap” being produced at the Gigafactory, though “no action was taken.” Tripp even sent an email to Tesla CEO on May 16, 2018 expressing his concerns and backing them up with “graphical charts.”

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Rental Car Business Being Squeezed by Ride Sharing

Autonomous vehicles present major change in prices.

by on Jul.31, 2018

Fully driverless vehicles, like the ones Ford plans to build for Lyft, may be the death knelll for some rental car companies.

The rental-car business faces a growing threat to its future from ride-sharing companies, according to a new survey from AlixPartners.

“Results from our survey suggest that the $30-billion U.S. car-rental industry is already undergoing a tectonic shift, with boundaries not just blurring but being obliterated between car-rental and ride-hailing and other forms of new mobility,” said Arun Kumar, a director in the Automotive and Industrial Practice at AlixPartners and a co-author of a new report focusing on the rental-car business.

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“The companies that survive this shift will be those that act now to transform themselves to be relevant in a world which seems to much prefer simply clicking on an app than standing in line at the rental counter,” Kumar said. (more…)

Tesla Faces the “Big Short” Ahead of Q2 Loss Announcement

Worries grow about carmaker’s finances, but brokerage tells short-sellers to put up or shut up.

by on Jul.30, 2018

Tesla CEO Elon Musk will be tested during the 2nd half of 2018 to prove Tesla can be profitable.

Just days before Tesla is expected to announce another big loss for the second quarter, the money manager made famous by the film, “The Big Short” is raising serious questions about the carmaker’s future.

And Steve Eisman, who became a financial legend by calling out the impending collapse of the housing bubble before the Great Recession, isn’t alone. A growing number of analysts and investors are souring on Tesla stock, one key brokerage warning that the company could need to raise $10 billion by 2020. Tesla shares have been riding a roller-coaster, ranging from a low of $244.59 to a high of $373.73 this year. And that’s leading at lead one big brokerage to raise margin requirements for those trying to short Tesla shares.

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“Elon Musk is a very, very smart man, but there are a lot of smart people in this world and you’ve got to execute. He’s got execution problems,” Neuberger Berman Group’s Eisman said in a Bloomberg Television interview. “He’s nowhere in autonomous driving, as far as I can tell, and big competition is coming in his space next year.”

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Former FCA CEO Marchionne Dead of Stroke at 66

A “force of nature,” the Italian-born exec rescued two car companies.

by on Jul.25, 2018

Sergio Marchionne was a dynamic game-changer that many could only watch as he raced by.

Sergio Marchionne, a man more than once called “a force of nature,” has died from a stroke at the age of 66, an unexpected complication following what had been expected to be “routine” shoulder surgery last week.

In an era when many businesspeople crave anonymity, Marchionne’s public appearances often turned into events, rather than mere news conferences. And perhaps for good reason considering there are few executives who could lay claim to having saved two separate automakers, Fiat and Chrysler, before bringing them together to form a global powerhouse.

Word that something had gone wrong came around noon Eastern time on Saturday when FCA issued a brief statement revealing that the Italian-born and Canadian-educated Marchionne experienced “unexpected complications,” and that his conditions had “worsened significantly in recent hours.” Subsequent news reports from Europe indicated the executive had suffered a stroke, fallen into a coma and was placed on a ventilator at a Swiss hospital. FCA issued another terse statement indicating his passing early this afternoon in Europe.

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Tesla Demands Refunds from Suppliers to Help it Claw into the Black

“Simply ludicrous,” warns one analyst.

by on Jul.23, 2018

Tesla CEO Elon Musk is pushing supplies to provide refunds on parts, some of them from months ago, as he scrambles to bring the company into the black.

(This story has been updated with new information.)

Tesla has demanded that suppliers give it refunds on parts purchases, some of those dating well into the past, in order to help the carmaker deliver the promise CEO Elon Musk has promised for the second half of 2018.

It is unclear if Tesla would be able to make that target without the givebacks. Investors reacted with skepticism after the news broke over the weekend, the company’s stock tumbling sharply ahead of the bell marking the official opening of Monday morning trading.

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Tesla officials told bingdb.info in a email that only certain suppliers were asked for a refund on past products and that this kind of interaction is not out of the ordinary. (more…)