Skip to comments.Tesla shares surge over 15 percent after SEC settlement
Posted on 10/01/2018 3:12:41 AM PDT by zeestephen
Tesla shares were up over 15 percent in pre-market trade on Monday after Chief Executive Elon Musk settled charges with the Securities and Exchange Commission (SEC).
(Excerpt) Read more at cnbc.com ...
I suspect the one thing keeping Tesla from bankruptcy was the irrational cult of personality built around its founder. With him gone, the whole, hollow structure will collapse.
These are incredibly expensive, software intensive cars. When the company goes bankrupt, it won’t be like Studebaker. Studebakers were standard cars anybody could keep running for decades. Not so with Teslas. For all practical purposes, no one but the dealer can work on them. People are going to be angry.
Hopefully, Tesla hasn’t become to politically important to fail. I am tired of the endless bailouts.
Meanwhile some guy who ripped off a convenience store will get 10 years.
Your point is correct....once they find out that only the Tesla geeks can repair them...this whole game ends. Tesla is a big deal now in Germany, with lots of people curious enough to buy them.
Course, we may wake up to find some company having bought Tesla on the cheap, and market them in a different way.
“Course, we may wake up to find some company having bought Tesla on the cheap, and market them in a different way.”
The company may come on the cheap, but the product makes no financial sense. It appears to be over designed and expensive to manufacture. And, beyond that, the very concept just isn’t ready for prime time. It’s an idea being driven by politics instead of economics. In the end, economics will always win. (I think that it’s the economics of the country that put Trump in the White House. Liberalism, like electric cars, just doesn’t work well in the real world.)
Amazing stuff... This company sells roughly 50 to 60 thousand cars per year. Most of their subsidized sales are to the idle rich looking for a new toy, and to the famous such as Al Gore and Leonardo DiCaprio to go along with their SUV’s and private planes as a statement of how much they care about global warming.
Meanwhile, in 2017 the big three automakers sold 2.4 million pickup trucks.... That doesn’t includes SUV’s, sedans, vans, etc.... That’s just pick-up trucks.
At the rate of 50,000 vehicle sales per year, it will take Tesla 48 years to sell 2.5 million units. Even if the market does grow (but it won’t grow much because let’s face it... How many idle rich people and celebrities are out there?), it would still take decades to achieve a number of 2.4 million units.
For the common person, the future is not self driving electric cars. It’s Ford F150 pick ups, Silverados and Ram Trucks. The most sold vehicles in the market are gas guzzling behemoths.
Tesla is a subsidized experiment propped up by people like Obama, the Democrats and Al Gore as the future for the auto industry. It’s fake news and when the truth is fully realized, Tesla will come crashing back to to reality and their stock will be worthless.
European competition is already in the showrooms at Jaguar and AUDI... plus dozens of others in the next year+... and ALL of them will be newer better designs than any current Tesla.
The big holders (GS and others) will get out over the next month... their retail side is finding buyers for their Tesla inventory ,, I expect to see a lot of sideways churn while they play the “you buy while I get out” game.
“European competition is already in the showrooms at Jaguar and AUDI... plus dozens of others in the next year+... and ALL of them will be newer better designs than any current Tesla.”
It will be a technology fire sale. Companies like BMW will evaluate Tesla’s technology and see if there is an ROI if they bought the company.
Staying with BMW, I thought they made their electric cars in Germany. Would it behoove them to buy Tesla for the factory space and retool for the American market? Again, if it makes financial sense.
So you compare personal violence to paper shuffling? Really?
Well, Musk is not gone; he remains as CEO.
It was a pretty cheap deal with the SEC: resign as Chairman of the Board and pay $20 million. That’s it.
He is far from gone. He is (and will remain) CEO. He is no longer the chairman of the board.
——the very concept just isnt ready for prime time——
Rather than scale down a BMW 7 series, success will come from scalng up a golf cart. I think that process is well under way at present
in Florida retirement communities
On financial sense, I totally agree. Once you get somewhere in the range of 30-percent of all cars being electrical...I think the demand on the grid (particularly in Europe) will reach a level where upgrades are required, and you wake up to a monthly electrical bill of 280 Euro (340 US dollars roughly) a month (currently around 85 Euro (105 US dollars), with the once or twice a week car charge taking a fair amount of the monthly increase. Note, because most heat with natural gas, and there is usually no AC usage...the bill is lower than an American might pay.
But for a practical guy, there’s two big negatives here. For a charge period, generally...you are talking about three hours. It means continually planning and executing the charge with a time schedule....something that most people have a problem with. Note, to get the cheaper electrical rate....you’d probably have to charge at late hours (figure midnight to 6 AM). The second negative is the battery strength, and how extreme summer heat or extreme winter cold...might affect your mileage in the end.
Locally, I live in an urban region of Germany...by the end of 2019, our city will have 55 city buses replaced with battery buses (not hybrid or such). You can take pretty much every single route and figure that they will get about five hours of use before a charge is required. So far, no one talks much about the summer heat/winter cold affect on the battery drain, and no one talks about full loads versus half-loads on the buses. The money is spent and one just senses that this is pretty doomed to fail.
LOL- this was NOTHING!
They said his comment about wanting to take his company private again was fraud?
Who the eff is running the SEC?
They’re pumping it hard in the pre-market ,, now +50
BMW makes many of their cars in the Carolinas..
classic “pump and dump”
classic pump and dump
Probably a lot of Wall Street firms selling shares into the short covering “rally” while most people are unable to trade pre-market...
And all of them will be overpriced toys... Sure electrically operated vehicles are out there and established car makers are offering various versions, but are they practical?
No, they are not and they won’t be for many many decades to come.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.