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Archive for the ‘Tesla’ Category

Mercedes’ Enigmatic Teaser Appears to Preview All-Electric EQ C

“Mystic Details,” says terse news release.

by on Aug.27, 2018

What might Mercedes mean by "Mystic Details"? Could it reference the distinctive accent lights expected to show up on the production EQ C crossover.

These days, we’ve become used to receiving terse news releases from automakers teasing upcoming product launches, but the one we just received from Mercedes-Benz all but reaches the limits of brevity, with just two words accompanying this image: “Mystic Details.”

While we’re not sure what the word, mystic, references, the odds seem to favor the pic being a close-up of headlight and grille details on the new Mercedes-EQ C battery-electric vehicle that will make its debut on September 4th, the first in an all-new sub-brand the German automaker will be fleshing out over the next few years.

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Roughly the size of today’s Mercedes-Benz GLC, the EQ C will be company’s first long-range all-electric model, essentially a competitor for the Tesla Model Y crossover that is still a few years away from production. It will be followed soon after by a production version of the Mercedes EQA Concept that was revealed in June.

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Tesla Staying Public; CEO Musk Facing Further Scrutiny

“The sentiment, in a nutshell, was ‘please don’t do this.’”

by on Aug.25, 2018

CEO Elon Musk has abandoned his plan to take Tesla private, citing investors' concerns.

Less than three weeks after suggesting he was ready to take Tesla private – in the process triggering an SEC investigation – CEO Elon Musk advised employees late Friday night that he has bowed to pressure and will keep the automaker a publicly traded company.

The latest move caps an increasingly turbulent period for the South African-born entrepreneur who has come under increasing scrutiny in recent months. That is, in part, due to his frequent tweets, but also because of some of the spats Musk has gotten involved in, at one point using a slang term for pedophile to describe a diver who helped rescue a young soccer team trapped in a flooded Thai cave. He has also been called out by rapper Azealia Banks for alleged drug use on the night Musk first tweeted about taking Tesla private.

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“Although the majority of shareholders I spoke to said they would remain with Tesla if we went private, the sentiment, in a nutshell, was ‘please don’t do this,’” Musk wrote in a late Friday e-mail to the automaker’s employees.

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Tesla Stock Rises and So Does the Controversy Around It

Stock jumps 4.36% despite class action suit, merger news.

by on Aug.21, 2018

Tesla CEO Elon Musk's plans to take the company private have it facing a class-action suit and 4.36% jump in its stock price.

As the Saudi investment fund that Tesla CEO Elon Musk suggested could provide the funding necessary to take the EV maker private is in talks to invest in another EV maker – Lucid Motors – Tesla’s stock shot up more than 3% early in the day.

After taking a hit the last few days, the stock turnaround comes on news Morgan Stanley withdrew its rating on Tesla, suggesting that some sort of deal is in the works and the bank has agreed to help make it happen.

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Goldman Sachs also eliminated its coverage of Tesla stock last week then confirmed it was acting as a financial adviser to the company. Musk listed Goldman Sachs in the tweet as one of the financial advisers involved the potential deal to take the company private. (more…)

Lucid Hunting for Money from Saudi Fund Eyed by Musk

Saudis buying Tesla on open market, may be money left for Lucid.

by on Aug.21, 2018

Lucid executives are on the hunt for additional investors, like the Saudis.

Tesla apparently has competition looking to tap Saudi Arabia’s money to finance Elon Musk’s plan for taking the electric car company he founded private in the near future.

PIF, the Saudi Arabian sovereign wealth fund that Musk has said could help him fund a $72 billion deal to take his electric car maker private, is also in talks to invest in aspiring Tesla rival Lucid Motors Inc., according to Reuters.

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The talks between privately-held Lucid Motors and PIF highlight the Saudi’s desire to invest in electric car makers to diversify their investment portfolio. Moreover, PIF has already made substantial commitments to other technology companies, including a $45-billion agreement to invest in a giant technology fund led by Japan’s SoftBank Group Corp., which recently offered more than $2 billion to help finance General Motors’ autonomous vehicle subsidiary, Cruze. (more…)

CEO Musk Risks Becoming Liability for Tesla

Stock plunges again after weepy interview, SEC probe revealed.

by on Aug.20, 2018

Musk has said he's been working up to 120 hours a week - but is that really benefitting Tesla?

(This story has been updated with a comment by former GM V.Chairman Bob Lutz.)

Since the era when Lee Iacocca was the seemingly ever-present face of Chrysler, perhaps no other automotive executive has been more closely linked with his company than Tesla’s constantly tweeting CEO Elon Musk – and Iacocca didn’t have access to the social media tools that routinely help Musk make headlines.

But the events of recent weeks have started raising questions about the 47-year-old Tesla chief’s role, some observers beginning to wonder whether Musk is starting to become more asset than liability. That has become underscored in recent days as backlash continues to mount over the tweet Musk posted early this month announces his goal of taking Tesla private and suggesting that the necessary funding had been “secured.”

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That has triggered a new probe by the Securities and Exchange Commission, it was revealed last week, about the same time Musk sat down by an unexpectedly emotional interview with the New York Times that raised questions about both his health and his ability to remain at Tesla’s helm and, as this week begins, it has led to new warnings about Tesla finances, the automaker’s shares taking a sharp tumble as Monday trading began on Wall Street.

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Musk Laments “Excruciating” Toll He’s Faced at Tesla

But no plans to give up post as CEO.

by on Aug.17, 2018

Tesla CEO Elon Musk revealed that he feels like this has been the toughest year of his life.

Forget the amusement park. Anyone who wants to ride a roller-coaster might be better off purchasing Tesla stock. But no one has faced more ups-and-downs during the last year than the automaker’s co-founder and CEO Elon Musk.

Even as Tesla appears to be resolving its production problems and seems poised to deliver a long-promised profit, the automaker and its CEO are facing a probe by the SEC, lawsuits filed by several short-sellers, additional investigations by the NLRB, NHTSA and the NTSB, and allegations of safety and quality problems by several self-styled whistleblowers.

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No wonder, “This past year has been the most difficult and painful year of my career,” Musk said in an interview newly published by the New York Times. “It was excruciating.” (more…)

Good News, Bad News: A Round-Up of the Latest Tesla Developments

Whistleblower reveals defects; SEC probing Musk tweets and a key analyst raises earnings forecast.

by on Aug.16, 2018

Former Tesla employee Martin Tripp tweeted images of what he claimed were faulty Tesla batteries.

Regulators, whistleblowers, analysts and investors? Oh, and did we leave out factories finally emerging from “production hell?” It’s been a busy 24 hours for Tesla and CEO Elon Musk, with a heavy mix of both good news and bad news.

Here’s a summary of key developments including claims for a quality cover-up, an SEC probe and the possibility that Tesla could wind up being more profitable this year than even its most bullish proponents had expected:

Whistleblower claims Tesla covered up battery problems, delivered defective cars to customers.

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Tesla’s battle with Martin Tripp – a self-styled whistleblower whom the carmaker prefers to call a saboteur – is heating up. The former employee at the Gigafactory battery plant has tweeted out images of what he claims are defective lithium-ion battery packs that were nonetheless installed in sedans to help Tesla speed up production of the Model 3. Tripp also posted of vehicle identification numbers that he claims are equipped with the batteries which, among other things, may have punctures.

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Musk, Tesla Board, Move Forward on Privatization Plan

Carmaker hires Goldman, Silver Lake to advise.

by on Aug.14, 2018

Whether Elon Musk could justify tweeing "funding secured" is a matter of hot debate.

Even as questions mount about CEO Elon Musk’s plan to take the automaker private, the car company’s board is beginning the necessary steps to evaluate a proposal, with investment firms Silver Lake and Goldman Sachs brought in to offer advice on what appears to be a Saudi-funded buy-out.

Those developments come just a week after CEO Musk tweeted his interest in taking Tesla private while also hinting that “funding (is) secured.” Precisely where the funding will come from has become a central question, though Musk on Monday put up a blog post indicating he has been meeting with managers of the Saudi Arabian sovereign investment fund who have expressed interest in backing the plan.

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Tesla, meanwhile, now faces a probe by the SEC, as well as at least two lawsuits filed last week questioning whether the South African-born executive’s proposal was, in reality, a “nuclear attack” on by short-sellers.

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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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