Elon Musk Sells Tesla Stock Worth $4 Billion

Elon Musk has sold an estimated $4 billion worth of Tesla stock days this week after reaching a $44 billion deal to purchase Twitter. Regulatory filing show the CEO offloading nearly 4.5 million shares of the automaker between April 26th and the 27th.

The timing of the transaction makes the why of the situation fairly obvious. Despite the resulting political hubbub, Musk reached an agreement on April 25th to acquire Twitter. The deal was tied up with tens of billions of dollars worth of his Tesla shares to support margin loans after the executive said he could come up with $21 billion in equity. While some questioned where the funding would come from, others claimed it was obvious.

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Porsche IPO May Be Stalled Over Russo-Ukrainian War

Despite news that Volkswagen Group’s largest shareholder is eager to list the Porsche brand, rumors are swirling that the plan might be delayed over the conflict in Eastern Europe. VW and Porsche SE have openly shared their desire to launch the initial public offering (IPO) in the fourth quarter of 2022. However Porsche Automobil Holding SE’s finance head has suggested it might not be prudent if Russia is still occupying parts of Ukraine.

“We cannot rule out, if the conflict lasts a longer time, that this could have potential implications on the listing,” CFO Johannes Lattwein recently explained during a press conference held in Berlin, adding that no formal decisions have yet been made.

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Nikola Founder Continues Dumping Stock Following Criminal Indictment

Nikola Corp. founder, Trevor Milton, has been offloading stock ever since he was indicted for making misleading and/or blatantly false statements about the company. The formal charges were issued in July, piggybacking off a critically damning report from 2020 that alleged Nikola had grotesquely misrepresented its production capabilities and falsified a video where it showed an inoperable prototype vehicle working as if it was fully functional. The paper caught the attention of both the Securities and Exchange Commission (SEC) as well as the Department of Justice (DOJ) — resulting in Milton stepping down as CEO and twelve months of investigative probes.

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Hertz Stalls Stock Sale Amid Market Madness

The Securities and Exchange Commission has urged the recently bankrupted Hertz to halt the sale of stock. The rental agency had hoped to raise half a billion on the sale but repeatedly warned that would-be buyers were gambling, as the stock may soon be worthless.

Bizarrely, this hasn’t discouraged investors from glomming onto shares of bankrupt and near-bankrupt companies. Despite the global economy supposedly hurdling into a recession and mass unemployment, Wall Street hasn’t signaled that anything is amiss.

Still, the SEC has grown concerned with the trend and decided to address them with Hertz, according to a recent filing. Trading of Hertz Global Holdings Inc. was halted on Thursday, placing investors in a holding pattern as everyone speculates whether the bankrupt car renter will have to revise its plan to raise cash by selling new shares.

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Ford's Farley Buys Up $1 Million in Company Stock

Ford Motor Company COO Jim Farley has purchased $1 million of stock in the company he works for as a sign of faith that the Blue Oval can and will recover. You might recall Farley from his recent promotion, one resulting from a March management shakeup that forced Ford’s former head of automotive Joe Hinrichs out of the company. That situation ruffled a few feathers, but it’s ancient history now, considering what landed on Ford’s plate later in the month.

The automaker went into the coronavirus pandemic in the midst of a comprehensive and costly restructuring campaign. Government-mandated lockdowns soon stymied the economy, negatively influencing Ford’s share price. Plenty of automakers find themselves in similar situations, creating an impetus to further walk back mobility claims they were all betting on — or, more accurately, getting Wall Street to bet on.

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Elon Musk Selling Earthly Possessions, Gets Yelled at Online

Tesla CEO Elon Musk has had an interesting few days. It all kicked off when he went off on the politics behind coronavirus lockdowns — suggesting that state mandates had surpassed what should be deemed reasonable and that civil liberties were being infringed upon — during Wednesday’s earnings call. By week’s end, he was using social media to announce Tesla’s stock price was too high.

Despite it not being his first time making such a claim, and with the automaker turning a surprise first-quarter profit, the company’s share price still lost 10 percent in a single day. Musk then announced he would sell practically everything he owned. Initially, it seemed to be another partial joke taken completely literally by some followers and the media. But Musk began making good on the claim, listing two properties over the weekend.

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Aston Martin Lands Sugar Daddy in the Form of a Canadian Billionaire

2019 was not a good year for Aston Martin’s balance sheet. As the British automaker struggled to get new product out the door, its stock decided to mimic the final plunge of the Edmund Fitzgerald. A second profit warning greeted accountants and shareholders as the New Year dawned.

As reported Friday morning, the company’s outlook is suddenly much sunnier.

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Lyft You Up: Rideshare IPO Could Mean Big Payday for GM

Back in 2016, General Motors invested half a billion bucks in Lyft, the rideshare company bent on taking Uber to school. When the deal was made, the companies portrayed it as a long-term strategic alliance. Since then, investments have been made in Lyft by GM’s competitors (namely Ford), and GM has made investments in potential Lyft competitors like Cruise Automation. Pro tip: don’t try to draw this particular family tree.

Today, Lyft went public on the stock market, seeing an astounding open of $87.24 a share. As a gearhead, why should you care about this? Well, remember that investment GM made in the company? The General now owns 18.6 million shares, which now translates into a net value of over $1.5 billion.

In a company besieged by idling plants and layoffs, suddenly finding an extra billion-and-a-half bucks on the books is surely a big deal.

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Tesla Announced Layoffs to Public Before Telling Employees: Report

On Thursday, Tesla announced it will finally begin delivering the Model 3’s long-awaited base trim to the public through direct online sales. By eliminating storefronts, the automaker believes it can reduce costs — helping to get that pesky profit situation under control.

Unfortunately, reports have emerged that claim those employees had no idea their jobs were on the line. Meanwhile, the company’s share price took a hit in the wake of the announcement, causing its stock to drop significantly. Since last Thursday, more than $8 billion disappeared from Tesla’s market capitalization.

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Vision Problems? Ford CEO Says There Aren't Any

Analysts and investors are quick to point out a key similarity between Ford Motor Company’s stock and the terrain between the Appalachians and Outer Banks, viewed from west to east. Unlike Tesla’s recent share price plunge(s), Ford’s decline has been gradual, remaining stubbornly unaffected by the automaker’s attempts to turn it all around.

While he’s faced questions about his performance before, Ford CEO Jim Hackett is growing frustrated with the idea that, under his leadership, the company is focused too much on the future, with not enough going on in the present.

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Norway's Wealth Fund Issues Savage Burn On Tesla

Save for some uplifting production news, Tesla Motors is still fighting an uphill battle. CEO Elon Musk’s earlier claim that the company would go private has gotten him into trouble with the Securities Exchange Commission — since it looks as if the automaker hasn’t procured the necessary funding to make that happen.

However it doesn’t appear as if Norway’s sovereign wealth fund will be the outlet to pick up that tab. Trond Grande, deputy CEO of the Norwegian fund, declined to say whether Tesla had approached the fund about going private. “We don’t have a view on that,” he said before adding “We want to be invested in companies that make money.”

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In Musk's Own Words: The Case for a Private Tesla

After igniting a blaze of speculation via Twitter and halting the trading of Tesla stock, CEO Elon Musk made public an internal email sent to employees. In it, he lays out his reasoning for taking the publicly traded automaker private.

While there’s no mention of the secured funding mentioned in his earlier tweets, the desired share price — $420 — remains. And Musk seems quite confident that shareholders will see things his way.

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Tesla Trading Halted After Musk Mentions Taking Company Private - at $420 a Share

Tesla may be going private, according to a Tuesday message from Elon Musk’s Twitter account. “Am considering taking Tesla private at $420. Funding secured,” the CEO wrote. “Good morning,” he said immediately afterward, accompanying the message with the smiley face emoji.

What followed was rampant media speculation as to whether Musk was in his right mind or not, while Musk continued responding to questions online.

“I don’t have a controlling vote now & wouldn’t expect any shareholder to have one if we go private. I won’t be selling in either scenario,” he said after being asked whether it would be an outright sale and if he could retain control of the company. “My hope is *all* current investors remain with Tesla even if we’re private. Would create special purpose fund enabling anyone to stay with Tesla. Already do this with Fidelity’s SpaceX investment.”

Meanwhile, CNBC and a few other news outlets noted that the number 420 has a special significance in the marijuana-smoking community and that Musk’s good-morning tweet was issued at around 1:30 p.m. Eastern, which — gasp — isn’t in the morning at all!

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Fiat Chrysler Was in Geely's Sights Before Daimler Deal: Report

After last week’s announcement of a $9 billion Daimler stock buy-up by China’s Geely Group, an old story is once again rearing its head. Remember last year’s buzz surrounding a possible takeover of Fiat Chrysler Automobiles? The rumors CEO Sergio Marchionne subsequently refuted? Yes, that story.

A new report claims Geely did indeed give FCA the once-over, even engaging in preliminary talks. Obviously, this first date went nowhere, as Geely now owns nearly 10 percent of German auto giant Daimler, not the maker of Jeeps and Rams.

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Piston Slap: An Update (and a Request!)

Sajeev writes:

That’s right people: I need more user-submitted queries to keep this series alive!

The same rules apply, just about anything besides the “Help Me with my [s]First World Problem[/s] Car Purchasing Dilemma” is on the table. If you’ve seen it on an automotive message board, let’s tackle the issue here. I need your content!

sajeev@thetruthaboutcars.com

No more begging, let’s get back to Craig the Audiophile looking to cancel his noise-cancelling Grand Cherokee:

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  • Jeff S This would be a good commuter vehicle especially for those working in a large metropolitan area. The only thing is that by the time you put airbags, backup cameras, and a few of the other required safety features this car would no longer be simple and the price would be not much cheaper than a subcompact. I like the idea but I doubt a car like this would get marketed in anyplace besides Europe and the 3rd World.
  • ScarecrowRepair That's what I came to say!
  • Inside Looking Out " the plastic reinforced with cotton waste used on select garbage vehicles assembled by the Soviet Union. "Wrong. The car you are talking about was the product German engineering, East German. It's name was Trabant.
  • Inside Looking Out To me it looks like French version of Hummer. The difference is that while American Hummer projects power French little Oli projects weakness.That vehicle reflects the bleak future for EU. For now they have to survive coming winter but in general population collapse it coming soon, Europeans will be gone in the long run. Only artifacts like this concept and legends will remind us about advanced and proud civilization that populated that small continent the civilization that in the end lacked will to exist.
  • Conundrum "the plastic reinforced with cotton waste used on select garbage vehicles assembled by the Soviet Union." Nah, wrong. But it's Posky, so should I be surprised? That body material, Duroplast, was invented by Germans, used on the East German Trabant car and dulled many a saw blade when trying to cut it.https://en.m.wikipedia.org/wiki/DuroplastThe Soviets made regular sheet tin cars. Nothing fancy, they just worked, like Soviet farm tractors you could repair with a pipe wrench and a 14 lb maul. They exported quite a few to Canada in the '60s and '70s and people used to swear by them.I suppose this new Citroen Ollie has LED lights. If they fail, does one go to the Dollarama for a $1 flashlight, then rip out and use those LED "bulbs" for a repair?I think this Ollie thing is off the rails. The Citroen 2CV was ingenious, both in chassis and especially suspension design and execution, but where's the innovation in this thing? Processed cardboard panels, when corrugated tin, a Citroen and Junkers favorite fascination would be just fine. Updated with zinc coating from circa 1912 and as used in garbage cans and outdoor wash tubs ever since, the material lasts for decades. Citroen chose not to zinc plate their 2CVs, just as the car industry only discovered the process in the mid 1980s, lagging garbage can manufacturers by three-quarters of acentury, with Japan holding out until the mid '90s. Not many 1995 Accords still around.This Ollie thing is a swing and a complete miss, IMO. Silly for silly's sake, but that's the modern day automotive designer for you. Obsessed with their own brilliance, like BMW and Toyota's crews creating mugs/maws only a catfish could love, then claiming it's for "brand identity" when people take offense at ugly and say so. They right, you wrong. And another thing -- hell, Ford in the 1950s, if not well before, and innumberable Australians found that a visor stuck out from the roof over the windshield keeps the sun out when necessary, but Citroen delivers first class BS that an upright windshield is the solution. And as GM found out in their newly-introduced late 1930s transit buses, flat windshields are bad for reflections, so they actually changed to a rearward slanting windshield.This design reeks of not applying already learned lessons, instead coming up with useless new "ideas" of almost zero merit. But I'm sure they're proud of themselves, and who gives a damn about history, anyway? "We new young whiz kids know better".