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It's in their interest to support the stock. They have a large TSLA holding and they think TSLA will be worth $4000 in 5 years, giving them, at current shares outstanding, a market cap of roughly $700 billion.
ARK Invest CEO and CIO Cathie Wood, whose ARK ETF (ARKK) has topped the market this year, says Tesla is set to rip high. Wood says over the next few years the stock will rise between 146 percent and a head-spinning 1,306 percent.
“This is a five-year time horizon,” Wood said on CNBC’s “ETF Edge ” on Monday. “Four-thousand dollars is the bull case, $700 is the bear case. It’s rare for us to a have a stock that meets our minimum hurdle rate of return in the bear case, so it’s north of 15 percent compound annual rate of return to get to our bear case target.”
Wood is so confident in Tesla’s trajectory that the stock is the largest weighting in the ARKK at 9 percent. The second-largest weighting, Stratasys, makes up for 7.8 percent of the ETF.
^ Someone coming in to prop up stock. It so wants to break $240. Trading volume already over 7 million shares when normal volume is 9 million and we're only 2 hours into the trading day.
Musk and SEC can't seem to come to an agreement. Needs another extension.
Tesla's Elon Musk, SEC again ask for more time to reach deal over CEO's Twitter use
April 25, 2019
(Reuters) - Tesla Inc Chief Executive Elon Musk and the U.S. Securities and Exchange Commission on Thursday sought a second delay and requested to provide the court another joint submission on or before April 30, indicating whether they have reached an agreement to settle a dispute over Musk’s use of Twitter, both parties said in a court filing.
The SEC in February sought to have Musk found in contempt of a fraud settlement last year after the CEO tweeted details about Tesla production numbers that were not vetted by the electric vehicle company’s attorneys.
Instead, U.S. District Court Judge Alison Nathan in Manhattan ordered Musk and the SEC to try to resolve the dispute on their own. The parties have already requested one extension.
Prominent Short-Seller Gives Up on Being a Tesla Bull
April 25, 2019
Citron Research founder Andrew Left said he’s frustrated with the way Tesla Inc. is corresponding with shareholders and isn’t long on the company’s stock.
“I am no longer long. Not short,” Left said in an email to Bloomberg. He added that he’s “disappointed with the way the company is communicating with shareholders. They have not articulated the demand vs supply issue.”
Tesla profitability will not ‘magically return,’ analyst says, as Q1 was a ‘debacle’ for Musk
Apr 25 2019
Wedbush lowered its rating of Tesla shares to neutral from outperform on Thursday after the company reported a first quarter loss that was far worse than Wall Street expected.
“In our 20 years of covering tech stocks on the Street we view this quarter as one of top debacles we have ever seen while Musk & Co. in an episode out of the Twilight Zone act as if demand and profitability will magically return to the Tesla story,” Wedbush analyst Daniel Ives said in a note to investors.
“The demand story at Tesla is quickly changing and the company has unfortunately not adjusted to an evolving [electric vehicle] landscape (especially in the US) with the well thought out marketing and distribution logistics needed to manage this difficult and complex hand holding process for customers, employees, and investors,” Ives added.
Additionally, Wedbush lowered its price target on Tesla to $275 a share from $365 a share, a nearly 25% cut. The new target implies 6.3 percent upside from Wednesday’s close.
“We no longer can look investors in the eye and recommend buying this stock at current levels until Tesla starts to take its medicine and focus on reality around demand issues which is the core focus of investors,” Ives said.
Ives has been a long term Tesla bull, having made 15 "Buy" calls over the past year... until yesterday
ARK Invest CEO and CIO Cathie Wood, whose ARK ETF (ARKK) has topped the market this year, says Tesla is set to rip high. Wood says over the next few years the stock will rise between 146 percent and a head-spinning 1,306 percent.
“This is a five-year time horizon,” Wood said on CNBC’s “ETF Edge ” on Monday. “Four-thousand dollars is the bull case, $700 is the bear case. It’s rare for us to a have a stock that meets our minimum hurdle rate of return in the bear case, so it’s north of 15 percent compound annual rate of return to get to our bear case target.”
Elon Musk makes deal with SEC not to discuss Tesla’s finances without a lawyer’s approval
Tesla CEO Elon Musk and the U.S. Securities and Exchange Commission reached a tentative agreement to settle their latest legal dispute.
Under the terms of the agreement Musk agreed not to tweet or otherwise disseminate information about Tesla’s finances, production numbers or certain other information without a lawyer’s approval.
I don't think it was as specific before. I think it was more general like "don't say things about Tesla finances that could startle investors without clearing it with a lawyer."
I don't think it was as specific before. I think it was more general like "don't say things about Tesla finances that could startle investors without clearing it with a lawyer."
In more direct terms, make sure you let a lawyer clear you before you attempt to defraud investors.
Tesla seeks up to $2.3 billion from share, debt issues
May 2, 2019
(Reuters) - Tesla Inc launched issues of new shares and debt worth more than $2 billion on Thursday, with Chief Executive Officer Elon Musk pitching in $10 million as the electric carmaker gave in to Wall Street pressure to bolster its cash reserves.
Analysts have been predicting for months that Tesla would need to raise funds for its expansion plans, which include the construction of a factory in Shanghai, the upcoming Model Y SUV, and the crucial ramp up of Model 3 sedan production.
Shares in the Silicon Valley company rose more than 5 percent on news of the capital raise plan, which follows Musk’s hint last week that a fund-raising was imminent after Tesla lost $700 million in the first quarter..
The company said in the filing that it would seek to raise $650 million in new shares and $1.35 billion in debt, with underwriters having the option to buy an additional 15 percent of each offering, potentially raising the proceeds to $2.3 billion.
“This was a smart move by Musk and Tesla to rip the band-aid off and go to the capital markets,” Dan Ives, an analyst with Wedbush Securities said in a note.
“The growing worries around capital were a black cloud over the stock on the heels of the company’s troubled March results and the choppy path ahead.”
In first-quarter results that disappointed many on Wall Street last week, Musk promised the company would deliver a profit again by the third quarter of this year, but the company’s huge investments mean it is leaking cash swiftly.
Tesla expects capital expenditures of $2 billion to $2.5 billion this year and about $2.5 billion to $3 billion annually for the next two fiscal years. It ended its first quarter with $2.2 billion in cash.
Analysts said last week that the company would probably seek between $1 billion and $3 billion dollars, and that it would cost significantly more than it would have a year ago, when some on Wall Street were already calling for a capital raise.
Tesla has raised funds through bank loans, several rounds of equity sales, issued convertible notes, a junk bond sale, securitization of its vehicle leases and solar asset-backed notes.
A previous issue of shares in 2017 went at $262 a share, compared to the company’s current price of $246. The yield on its existing $1.8 billion junk bond rose to 8.42 percent on Friday in anticipation of the new issuance, more than 3 percentage points above its 5.3 percent coupon.
Goldman Sachs and Citigroup will manage the offering. BofA Merrill Lynch, Deutsche Bank Securities, Morgan Stanley and Credit Suisse are the additional book-running managers.
Tesla launches cheaper Model 3 with 150km range in Canada to get $5,000 incentive
May. 1st 2019
Due to pricing restrictions, Tesla’s vehicles didn’t get access to Canada’s new $5,000 federal incentive for electric vehicles, but the automaker has now launched a new and cheaper Model 3 with a software-locked range of just 150 km (93 miles) in Canada to get access to the discount.
As we previously reported, Canada’s federal government launched a new $5,000 incentive at the purchase of new electric vehicles with base prices of less than $45,000 and that cost no more than $55,000 after options.
The government explains the incentive:
“To be eligible for incentives, a vehicle must have a base-model manufacturer’s suggested retail price of less than $45,000 for passenger vehicles with six or fewer seats, and less than $55,000 for vehicles with seven or more seats. For eligible vehicles with six or fewer seats, higher priced versions (trims) are eligible as long as the final manufacturer’s suggested retail price is $55,000 or less.”
It disqualified Tesla’s vehicles from being eligible to the incentive because the base Model 3, which is only available as an “off-the-menu item”, starts at $47,000.
In response, Tesla has lowered the price of the vehicle to $44,999 in Canada, but it also software-locked the vehicle to only 150 km (93 miles) of range.
By making the new base Model 3 available, which again is only through calling or visiting a Tesla store to order, Tesla also made the regular Model 3 Standard Range Plus with 386 km (240 miles) of range eligible for the incentive since it is technically an option on the same car that starts below $45,000 and doesn’t go over $55,000.
Elon Musk to investors: Self-driving will make Tesla a $500 billion company
May 02 2019
Citigroup and Goldman Sachs, who are underwriting Tesla’s latest effort to raise $2 billion in new funds, held a “broad investor call” on Thursday, where CEO Elon Musk and CFO Zach Kirkhorn answered brokers’ questions about their plans for the electric vehicle maker.
. . .
Musk confidently told investors on the call that autonomous driving will transform Tesla into a company with a $500 billion market cap, these people said. Its current market cap stands around $42 billion.
The call came as the company is looking to raise $650 million in equity and $1.35 billion in convertible bonds. Filings indicate that Tesla plans to use the capital for general corporate purposes. On the call, Musk said Tesla would be able to fund its business needs through cash flow, but that it was wise to have a buffer in case of a recession or weak global auto demand.
Kirkhorn reminded investors on the call that nothing has changed in Tesla’s outlook for Q2. The company still expects to deliver 90,000 to 100,000 vehicles in the second quarter, and 360,000 to 400,000 vehicles total this year.
According to the two investors who heard the call, Musk described Tesla’s existing electric vehicle, solar, and energy storage business lines as a backstop of value to Tesla’s business in a new driverless era.
. . .
Musk reiterated that because Teslas can be upgraded “over-the-air” with new software-enabled features and functionality, they will appreciate in value, unlike nearly every other car on the market. A Tesla will be worth $150,000 to $250,000 in 3 years, he claimed. He also said that a full self-driving upgrade will increase the value of any Tesla by a half order of magnitude, or five times.
Tesla expects to have 1 million vehicles on the road next year that are able to function as “robo-taxis,” Musk said, reiterating statements made at Autonomy Day and on the company’s Q1 earnings call. Each car should be able to do 100 hours of work a week for its owner, making money as a robo-taxi he told investors.
. . .
. . .
Buy Model 3 Long Range Dual Motor All-Wheel Drive with Autopilot and Full Self-Driving Capability for $54,500 or $43,950 after tax credits. Sell for $150,000 to $250,000 in 3 years for a 300% or better profit.
That's a better return than what TSLA stock has been.
Buy Model 3 Long Range Dual Motor All-Wheel Drive with Autopilot and Full Self-Driving Capability for $54,500 or $43,950 after tax credits. Sell for $150,000 to $250,000 in 3 years for a 300% or better profit.
That's a better return than what TSLA stock has been.
Elon Musk pushes the definition of puffery to the very edge.
CNBC got owned so badly they took the video down from their YouTube page. Then people complained, even Elon, that they added it back but edited it. Above is the original version
9-9-6 is standard labor for China start-up. 9am-9pm, 6 days a week. That place is being built so fast because they are beating the shit out of the laborers.
04-25-2019, 01:42 PM
at 93 miles of range.
