Tesla has invested $1.5 billion in Bitcoin and will soon be accepting cryptocurrency as a valid form of payment. Unsurprisingly, the digital token’s valuation surged as news broke, sending it past its all-time high of $44,000 and making a lot of investors incredibly happy.
CEO Elon Musk has boosted various cryptocurrencies in the past by doing little more than saying their name. For example, Dogecoin was co-founded by IBM and Adobe software engineers as the satirical alternative (hence the name) to other forms of digital currency. But it became the eighth-most valuable cryptocurrency after Musk started tweeting about it at the start of February.
American investment manager and short-seller extraordinaire Jim Chanos claims Tesla is “headed for a brick wall.” Having deemed the automaker as structurally unprofitable, Chanos said, “Three years ago, this company was supposed to be making money [today]. And now, it’s supposed to be making money by 2020. I’m guessing by 2019, we’ll hear about 2025.”
However, while Tesla has taken on massive amounts of debt to ensure its evolution as company, investors haven’t seemed to mind. Its stock price has climbed from $33 a share in 2013 to almost $380 in September of 2017. As a short-seller, Chanos says he’s lost money on the company in the past since the stock price never seems to go down, and that’s what he finds the most alarming.
“Nobody is buying Tesla stock based upon the current business,” he said. “It’s all based on the future and the hope for half-a-million to a million Model 3s per year.”
It’s been of week of bad PR and reports that should have Tesla investors tugging their collars and thinking twice, though in Teslaland these well-publicised issues only propel the automaker’s stock even higher.
The company’s electric big rig (aka the Tesla Semi), rumored to have a range of 200 to 300 miles, won’t see the light of day until November 16th, CEO Elon Musk claims. That’s two months after the initial reveal date, which was subsequently pushed back until late October.
The larger problem facing the company is the slow ramp-up of Model 3 production, which kicked off in July, but only resulted in only 220 deliveries by the end of September. The company forecasted 1,500 Model 3s in the month of September, with an expected production rate of 5,000 vehicles per week by the end of the year. Blame the slow trickle of cars on a “manufacturing bottleneck issue,” the company said in a statement.
As Musk attempts to soothe fears, a new report claims the automaker was hand-building parts away from the assembly line even as the high-tech facility was supposed to be cranking out Model 3s at a steady clip. Tesla is not happy about this report.
Workers are likely spinning in office chairs and there’s probably a second frozen yogurt machine on its way to Fremont as you read this.
After hitting a springboard on Monday morning, Tesla’s stock market value has now surpassed that of the former top-ranked U.S. automaker General Motors. This comes just a day after the electric automaker’s surging shares pushed past Ford, placing it in the number two spot.
There’s nowhere to go except down. What, too cynical?
General Motors is searching for savings under every RenCen couch cushion as it ramps up a profit-boosting cost-cutting effort.
The automaker has already chopped plenty of what it sees as fat, and is so confident in its streamlining abilities that it now claims it could weather a major plunge in sales. Even, say, a 40-percent dropoff.
For a company that knows all about sales plunges — recent ones, too — this is pretty confident talk. It has to be, as GM wants you — yes, you! — to invest.
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- Mark This is what it cost to drive a Tesla Model S Plaid for 11k+ miles in one year. You would pay more to drive a Yaris that far, never the less a performance car on the Plaid level. I don’t know where they got their math, but mine is actual real world results. We live in a cold climate and have removed our wheel covers, both of which hurt range, so your mileage may vary.
- Jack Bummer, his successor sounds like just another electric car shill :(
- IH_Fever Nissan should call for a real pickup before they call for electrification...