You are on page 1of 14

6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica

Recover Corrupt
Exchange EDB Files

INVEST ELECTRIC CARS ELECTRIC CAR BENEFITS ELECTRIC CAR SALES SOLAR ENERGY ROCKS RSS ADVERTISE PRIVACY POLICY

#1 cleantech news, reviews, & analysis site in the world.


Subscribe today. The future is now.

Back to Top ↑

The Media’s Story About Tesla Intern Opportunities

Is Wrong, Facts Tell Another


We Need You! Internship Program
Openings

 Twitter  LinkedIn  Facebook


Advertisement

May 31st, 2019 by Michael Grinshpun

Tesla’s stock is tumbling in the largest decline in TSLA history, and the media is in a frenzy.
The headlines on Tesla are starting to include the words such as “troubles,” “struggles,” and
even “doomed.” The narrative says Tesla’s demand is falling, its balance sheet is in terrible
shape, and Tesla will run out of cash in 10 months. The narrative also claims that Tesla will
miss expectations in the second quarter, and one analyst says that Tesla might go to
Advertise with CleanTechnica to get your
$10/share from the current $190, which is already down >50% from the highs. However, the
company in front of millions of monthly
data show that none of that is true. Tesla’s orders are at an all-time high in North readers.
America and worldwide, the balance sheet is the strongest it has been in 6 quarters, and
the average 12-month price target among analysts is $276/share, or 46% higher than
today’s price.
CleanTechnica Clothing & Cups
First, we will start with demand and quarterly expectations for vehicle deliveries. I recently
wrote a piece presenting data showing that Tesla’s orders for Model S/3/X are up 25% so
far quarter over quarter worldwide, and Model 3 orders in US and Canada are up 116%
(since publishing, they’re up to 130%) quarter over quarter. Analysts and media personalities
keep claiming Tesla’s demand is soft in recent weeks, while overlooking the hard data
proving that, in fact, demand is rising.

https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 1/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica

People Repeatedly Claim Tesla Demand Is Falling When Data Shows Tesla’s Demand Is Rising
Top News On CleanTechnica
While these analysts are speaking publicly about soft demand, something strange and
completely contrary is going on with the expectations that those same analysts are setting The Media's Story About Tesla Is
for the second quarter. In a recent conference call with investors, analyst Adam Jonas of Wrong, Facts Tell Another
Morgan Stanley stated that the current “whisper number” for Tesla’s deliveries in the second
Jaguar I-PACE, Audi e-tron,
quarter is “in the mid to upper 70s [thousands]” in terms of deliveries, versus Tesla’s
Mercedes EQC — Electric
guidance for between 90,000 to 100,000 (which no one believed) as well as Elon Musk’s Autobahn Range Disasters
most recent, slightly lower target (from his leaked email) of 90,700.
Chinese Tesla Model 3 Price
Crushes BMW 3 Series &
This whisper number is in line with the public consensus among investors — 82,092. Mercedes C-Class Prices
However, the analyst consensus that the media uses as a benchmark for Tesla to beat or
miss, called FactSet, has an estimate of 92,000 deliveries. This FactSet number seems Tesla's Integrated Dash Camera
Saves Hit & Run Victim
artificially high and designed so that if Tesla pulls off a delivery hell miracle and delivers its
new target of 90,700 vehicles in the second quarter, it will still be considered “missing
Tesla Is Producing Unicorns
expectations.” Why? Because it is 1.5% lower than the benchmark the media uses despite
being >13% higher than the “whisper number” and 10.5% higher than general investors’
expectations. Rumor Mill Goes Into Overdrive
— GM/Ford Merger On The
Horizon? And What About Tesla?

Tesla Short Seller: Protect


America! Ban Electric Cars!!

Confessions Of A Twitter $TSLAQ


Troll

Breaking! Tesla Model 3 Blasts


Into Asia Pacific Region As
Configurator Opens For 6 More
Countries

Forbes — Tesla Is Ripe For A


Takeover. (Huh?)

Join CleanTechnica Today!

Tesla’s Vehicle Delivery Expectations (FactSet) Are Being Artificially Inflated

Next, let us look at the balance sheet and Tesla’s cash position. First, a brief explanation of
what a balance sheet tells us: It is a document that every company has in its quarterly report
that shows the value of all its assets and all its liabilities/debts, and the total amount by
which assets exceed liabilities/debts is called equity. Cash is usually the first line in the
balance sheet as an asset and is the only asset that can be immediately used to pay for
things, thus making it very important.

Elon Musk recently sent a misinterpreted email to employees that was leaked to the
press, in which he made a hypothetical example to illustrate that the new amount of cash
that was just raised in early May was not as large an amount as it seems. The example was
that if Tesla kept losing money at the same rate as in the first quarter ($700 million), then it
would effectively “lose” all the money it had just raised in only 10 months. This was clearly
an illustrative hypothetical because the calculation wasn’t even technically correct. He was
citing the net loss on the income statement, which includes non-cash expenses such as
stock-based compensation and depreciation that have no direct effect on Tesla’s cash
balance. Moreover, the net loss also excludes some cash items such as investments that

Advertisement

https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 2/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
the company makes and any cash raised or paid back as part of financing with banks. You
can read more about this email here:

CleanTechnica @cleantechnica · May 28, 2019


Some Thoughts On Elon Musk’s Emails To Employees — & The Media
+ Wall Street’s Response cleantechnica.com/2019/05/27/som…

Elon Musk
@elonmusk

Yup
4,936 2:43 AM - May 28, 2019

305 people are talking about this

The media took this email to mean that Elon Musk was saying that Tesla would run out of
cash in 10 months and that the overall balance sheet is unhealthy. Tesla had $2.2 billion in
cash before the recent raise of $2.4 billion. Musk’s hypothetical was referring ONLY to the
recently raised $2.4 billion. The media suggested that it was Tesla’s entire cash position and
that Tesla would actually run out of “cash” in 10 months.
Advertisement
Moreover, the first quarter was an anomaly in many respects, and thus the same level of
cash burn will not recur. When you exclude one-time items such as a $920 million debt
repayment Tesla made in Q1, a $188 million one time charge for restructuring and inventory
price changes, and the $809 million increase in inventory as Tesla refilled the in-transit
pipeline that was drained in Q4, then Tesla actually gained >$300 million in cash rather than
losing $1.6 billion. All these one-time items will not recur in Q2, and deliveries will be
significantly higher in even the most pessimistic of scenarios. So, while the media reports
Tesla is running out of cash, the reality is that Tesla will likely post positive cash flows in the
second quarter. It is 100% certain that Tesla will not run out of cash in 10 months.

As for the overall balance sheet, which some media personalities on CNBC keep claiming
is in dire condition, the reality is that Tesla’s balance sheet is healthy. The metrics
demonstrating this are the debt-to-equity ratio (debt divided by the amount by which assets
exceed liabilities; lower is better) and the current ratio (assets that are or will become cash
over the next year divided by liabilities/debts that are due in the next year; higher is better
and >1 is healthy liquidity). Both metrics show Tesla’s balance sheet is the healthiest it has
been in 6 quarters, after Tesla’s most recent cash raise. This again directly contradicts what
the media is reporting.

Follow CleanTechnica

Follow @cleantechnica 90.8K followers

Finally, the last misrepresentation of the Tesla narrative that I will cover is the recent media
coverage of analyst opinions. Two analysts, Morgan Stanley’s Adam Jonas, and Citigroup’s
Itay Michaeli put out research reports with “bear cases” that say Tesla could be worth as little
as $10/share and $36/share, respectively. The articles written about this did not emphasize CleanTechnica
enough nor explain that “bear case” means “most pessimistic” or “worst case” scenarios. 42,251 likes

Nor did the articles put it into perspective that the overall 12-month average price target of
all analysts covering Tesla is $276.56 (46% higher than today’s price).
Like Page Send Message

Be the first of your friends to like this

Our Electric Car Driver Report


https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 3/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica

It is worth noting that there are a ton of interests against Tesla and other electric cars in
general. Other automakers have been dragged kicking and screaming into the yet
unprofitable electric car markets due to intense competition from Tesla, health and
environment regulations, and societal demands. Oil interests, famous for pedaling climate
denialism while their own research shows anthropogenic climate change has been
happening for nearly 50 years, are now focusing their efforts on curbing electric car
sales by spreading misinformation and lobbying against tax credits.
Read & share our new report on "electric car
drivers, what they desire, and what the
Finally, there are loud, outspoken fund managers such as Jim Chanos (who it seems clear demand."
previously manipulated the perceived solvency of Fairfax to drive them out of
business), David Einhorn, and Mark Spiegel (who keeps presenting at conferences that
Tesla is worth $0 and runs a Twitter account bashing Tesla on basically a 24/7 basis) — all
The EV Safety Advantage
of whom are short Tesla. Besides them, there are thousands of people shorting Tesla and
betting against the stock with billions of dollars, who often get their information at dark
corners of the internet, such as $TSLAQ on twitter (a conspiracy theory group that runs on
confirmation bias to spread their thesis that Tesla will go bankrupt). All of these people and
industries rejoice and profit when Tesla fails, and they are known to pressure the media to
cover their negative narratives and pester the SEC with requests to sue Tesla and Elon
Musk.

Ihor Dusaniwsky Read & share our free report on EV safety,


@ihors3 “The EV Safety Advantage.”

$TSLA short interest is $7.26 bn; 38.22 mm shares shorted;


29.03% of float; 0.74% borrow fee. Shorts are down $104 mm in
EV Charging Guidelines for Cities
mark-to-market losses today but up $4.53 billion YTD. Shares
shorted are up 139k over the last week, +0.37%.
22 8:58 PM - May 30, 2019

See Ihor Dusaniwsky's other Tweets

Here, I presented clear evidence that the media narrative around Tesla is a manufactured
crisis of confidence, and in fact, not a tangible crisis. This is not the first time such a crisis
was manufactured about Tesla, and certainly not the last. Every time such a crisis is
manufactured, it threatens the compensation of hardworking employees at Tesla and can cut
off Tesla’s ability to raise the capital it needs to fund its vision of a sustainable future.
Moreover, some customers might be deceived into believing that Tesla will go out of
business and decide not to purchase Tesla’s products at all. We have heard many such
stories along these lines.

With such large interests against the sustainable future, the incentives to manufacture a
crisis for the company focused on that sustainable future are clear. Anyone who cares about
a sustainable future must educate themselves and others, and, unfortunately, now it is
required to employ a healthy does of skepticism regarding media reporting around
https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 4/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
Tesla, and always fact check it. It is of the essence to call disinformation where you see it,
and question the people spreading the it. Complacency could lead to powerful anti-green
interests getting richer and more powerful. Beware of the Tesla smear.

P.S. To those who cover Tesla: Win back trust by paying attention to who your sources are,
and where their interests lie. Do not claim something questionable unequivocally (like the
balance sheet is in meltdown) without at least caveating the statement: the balance sheet is
the best it’s been in a while thanks to the new cash raise and could improve if new cash
flows materialize.

If you have the power, reject the influence of those who deny climate change or try to slow
down its solutions. Finally, do not take the trust of your readers for granted. If you trivially
jeopardize the future of humanity by destabilizing the largest sustainability organization the
world has ever known in the face of catastrophic climate change through questionable
claims, then you’re not “just the messenger” anymore, and you will not be trusted.

Share our free report on EV charging


guidelines for cities, “Electric Vehicle
Charging Infrastructure: Guidelines For
Cities.”

30 Electric Car Benefits

Our Electric Vehicle Reviews

Tags: Elon Musk, EV sales, FactSet, stock analysts, Tesla, Tesla analysts, Tesla
financials, Tesla Model 3, Tesla Model S, Tesla Model X, Tesla stock, united states, US
Tesla News

About the Author

Michael Grinshpun Michael Grinshpun is a dual undergraduate and graduate student in


economics. He writes about the electric car industry and works on sustainable energy
issues. He works on Carbon Free Boston, an initiative to lower Boston’s carbon emissions to
zero by 2050, as well as on water utility projects. Previously, Michael has worked in solar
consulting and energy facilities.

Related Posts Cleantech Press Releases

“That Was Quick” Category: Carbon


Engineering Partners With Occidental To
https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 5/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
Pump More Oil

Texas Cooperatives Agree to Purchase 7


MW of Distribution-Scale Solar Energy

Tesla Raising ~$2 Billion


Some What Do We Know Remember, Morgan I Found A Safety
Environmentalists Are About Tesla Owners? Stanley’s Adam Jonas Concern In My Tesla
Being Punked → Predicted In 2016 Model 3, & How To
Regarding Tesla → Tesla Would Sell Only Correct It →
246K Cars In 2020 — 38 Anti-Cleantech Myths
Just Sayin’ →
Sponsored Links

Top CEOs Everywhere Are Using Blinkist To Read More Books


Blinkist

This New $89 Trap Finally Solves The Egypt Mosquito Problem
Electric Mosquito Killer

Don't Eat Turmeric Unless You Know These 7 Things Wind & Solar Prices Beat Fossils
Health & Human Research

209 Comments CleanTechnica 


1 Login

 Recommend 13 t Tweet f Share Sort by Oldest

Join the discussion…

LOG IN WITH
OR SIGN UP WITH DISQUS ?

Name

Paul Fosse • a day ago


Cost of Solar Panels Collapses
Great article to set the record straight!
38 △ ▽ • Reply • Share ›

Foolaloof > Paul Fosse • a day ago


Kudos
Astute and clearly written about what is nothing short of a story of world-wide
interest, giving understanding of a corrupt financial system that needs an
overhaul the moment the votes are counted after the next election.
6△ ▽ • Reply • Share ›

Zachary Shahan Community Manager > Foolaloof • a day ago

Indeed — global interest. So important. Sort of a fight between the


good & bad characteristics of the USA.
2△ ▽ • Reply • Share ›

Shiggity • a day ago


There is now a disastrous schism in the US between people who get their
information with critical thought and those that simply turn on cable TV and obey.

It's a legit Fahrenheit 451 society and living inside 'a bubble' has become a
convenient choice for economically well off Americans who do not wish to see
anything bad or anything change from what they're used to.
21 △ ▽ • Reply • Share ›

Geoff Willingham > Shiggity • a day ago


It's not just in the US (although it does seem to be more predominant there,
based on how the US is portrayed overseas, etc)

In general, it seems to be a general lack of 'critical thinking', and an


acceptance of the 'easy solution' because it requires less effort, not because
https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 6/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
it's better. There is no drive for people to better themselves - indeed, the
opposite force is empowered these days, and people trying to better
themselves or humanity in general are usually attacked by those who want to
pull them down... Musk is one very prominent example, but by no means the
only one.

Whether it's because people have a vested interest that is being


endangered, or just because it makes people uncomfortable (because it
makes them realise they *have* settled for less, and they don't like people
doing better than them, even if it means they've had to put more effort in).

To be honest, I can understand this position... I'm kinda the same from a
physical aspect (don't like the gym / making a physical effort - far easier to
just sit on the sofa eating comfort food and getting flabby), so it doesn't
surprise me that some people are the same mentally, consuming the media-
equivalent of junk food....

It's just a shame that they want to pull everyone else down to their level...
whilst I'm happy to sit on the sofa (well, on the computer chair) and get
flabby, I'm more than happy to salute anyone who is willing to exert
themselves... shame the 'mental-flabbies' won't follow suit.
13 △ ▽ • Reply • Share ›

Robert Pollock > Geoff Willingham • a day ago


I concur. I think this is just evolution in it's simplest terms; Darwin said
it 130 years ago. "Not the strongest, not the cleverest, but those who
can adapt, survive".
When you surround yourself with comforts, your survival skills go
down the drain. How many here can't fix their front door bell?
3△ ▽ • Reply • Share ›

Show more replies

Show more replies

Robert Pollock > Shiggity • a day ago


Finding legitimate news is getting more difficult. There are some new
'youtube' style newscasters who promise to be objective, but there are no
large news agencies anymore, that are trustworthy. They have all been
bought off at the editorial level, so you know what you will read before you
open the story.
Open and free journalism is fundamental to democracy, our freedoms don't
exist without it. That's why it's under attack.
Rupert Murdoch is tantamount to any of the defendants of the Nuremberg
trials. The Sinclairs, the Kochs, De Vos, there is a long list of American
seditionists who should be eliminated if the country is to improve.
3△ ▽ • Reply • Share ›

Show more replies

This comment was deleted.


Avatar

cruzier > Guest • a day ago


Only the balance sheet is not as bad as you are portraying it.
7△ ▽ • Reply • Share ›

Foolaloof > Guest • a day ago


Sure - plenty not talked about.
Last Sunday's weather, for example. "Squirrel!!'
Another? the hugely accelerated timeline for production and profit in China.
So many choices - what was the author thinking?
Reality bites: The article is spot-on for a range of germane topics showing
the dishonesty - borne out of desperation - of those determined to lead the
public astray on Tesla and the EV movement.
(Right, RK?) ;-).
10 △ ▽ • Reply • Share ›

Roger Starkey > Foolaloof • a day ago


(OUCH!)
(BTW, seems the wet season is starting in China.... Expect incoming
FUD!!)
https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 7/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
1△ ▽ • Reply • Share ›

Show more replies

Show more replies

PragmaticCitizen • a day ago


A more reliable metric is TSLA bond rates....they're touching 9 percent, which is
nearing junk rating. This is a market signal that risk is considerable in the company.
Orders are only one issue. More important is profitability, and the ability of TSLA to
invest in the China plant build out while launching new products all while servicing a
considerable debt load, over 11 billion dollars. Musk had said that the company
wouldn't need to go to the markets again and yet here we are. After 16 years and
four products, the lack of a smooth production and delivery cadence is troubling, as
are recent incentives like the return of free supercharging. At least one supplier is
suing the company for non payment and there is still no start date for model Y
production...these are serious issues and need immediate attention. Auto
manufacturing is a full time management problem and Musk is spread too thin.
Markets are now skeptical and will need to see a path to profitability in two to three
quarters to turn the stock around. If TSLA misses in 2Q the stock may drop
significantly.
8△ ▽ • Reply • Share ›

Martin Lacey > PragmaticCitizen • a day ago


Moody's rated Tesla as junk last year because they bought the FUD and
bankruptcy story.

The recent equity raise was nowhere near 9%


15 △ ▽ • Reply • Share ›

PragmaticCitizen > Martin Lacey • a day ago


Toyota pays 3.3 percent. To enjoy that kind of cheap money, TSLA
needs to get to profitability, quickly. Debt is dragging on the firm.
3△ ▽ • Reply • Share ›

Show more replies

Show more replies

Geoff Willingham > PragmaticCitizen • a day ago


Not really - bond rates are an indication of how the lenders view a given
company, and whilst there is more pressure on them to take a 'realistic' view,
they can still be mislead or take an unreasonably negative (or positive) view,
or just make a mistake.

If they're setting bond-rates based on a company making a profit, and the


company has said that they're not focused on making a profit (note: because
they intend to invest all proceeds in growth and R&D, etc), then the bond rate
isn't likely to be an accurate indication of the health of the company...
19 △ ▽ • Reply • Share ›

PragmaticCitizen > Geoff Willingham • a day ago


Bond rates are based on the maximum that the lender can
negotiate....they're high because the market sees considerable risk in
TSLA. A couple of quarters of profitability and they would ease. Bond
rates are by definition accurate because they represent the price at
which the market clears. Time for TSLA to start making money.
4△ ▽ • Reply • Share ›

Show more replies

Show more replies

Show more replies

Mark Potochnik • a day ago


Latest go around!
"Tesla has never needed to advertise, but that might have to change"
Tesla sells every car that they can make. Invest in chargers NOT advertising.
The big lie. Tesla demand lie!
Building worldwide markets and charging network!
7 △ ▽ • Reply • Share ›
https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 8/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
7△ ▽ • Reply • Share ›

Mark Potochnik • a day ago


GM down $2 over 9 years from it's IPO!
2△ ▽ • Reply • Share ›

andyp69 • a day ago


The demand part is the most hilarious. "There's no demand!" chant the critics, while
also setting a new sales record as the "expectation".

The stock price is not even worth worrying about. It's too much manipulated to be
any kind of indicator for the health of the company itself. Just ignore it.
20 △ ▽ • Reply • Share ›

Andrew > andyp69 • a day ago


Buy the dip while you can. It's their loss for believing the wrong news.
7△ ▽ • Reply • Share ›

Foolaloof > andyp69 • a day ago


Nice juxtaposition, andyp69!
△ ▽ • Reply • Share ›

Show more replies

Daniel J Houk • a day ago


Where did you get the daily order rate data?
2△ ▽ • Reply • Share ›

Michael Grinshpun > Daniel J Houk • a day ago


I explain the sources and methodology for calculating average daily order
rates in this article:
https://cleantechnica.com/2...
2△ ▽ • Reply • Share ›

Zer0Sum • a day ago


The real problem is that Tesla are investing heavily into RnD instead of propping up
their share price with formerly illegal share buybacks or lobbying the govt to
sanction their competitors. The financial parasites were not expecting Tesla to
actually follow through with their long term development plans AND genuinely
disrupt the market.
18 △ ▽ • Reply • Share ›

Zachary Shahan Community Manager > Zer0Sum • a day ago

Boom!
△ ▽ • Reply • Share ›

Max Holland • a day ago


Great article Michael, thank you!
8△ ▽ • Reply • Share ›

Alan Wilson • a day ago


Great article l do feel sorry for all the guy's writing these articles having to read this
BS first.... only 4 weeks to go untill Q2 results then it over...
4△ ▽ • Reply • Share ›

Zachary Shahan Community Manager > Alan Wilson • a day ago

Yes, would be more fun to write about the cool stuff than the lousy market
manipulation.
△ ▽ • Reply • Share ›

Alan Wilson > Zachary Shahan • a day ago


Yes good stuff lm sure theres a lot out there,
1△ ▽ • Reply • Share ›

Rob • a day ago


Completely agree. The coverage of Tesla lately has been the most moronic I have
ever seen and downright lies a majority of the time.
7△ ▽ • Reply • Share ›

Wallace > Rob • a day ago


https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 9/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica

Panic induced storm of lies?

Might it be that there are interests that are now fearful that their industry will
be coming to an end long before they anticipated? Attack Tesla strongly
enough and it might be possible to hold off the inevitable a bit longer and
allow more looting before the collapse.

I'm not saying that is happening, but there certainly is motivation for
someone to mount a propaganda campaign against Tesla.
△ ▽ • Reply • Share ›

Zachary Shahan Community Manager > Rob • a day ago

Indeed. And we're talking about Tesla! Years of this stuff. But is at an insane
level (again — was like this mid-2018.)
△ ▽ • Reply • Share ›

Rob > Zachary Shahan • a day ago


This time seems much bigger. Double the volume on TSLA (nearly
100MM shares turned over just last week which is crazy with only a
float of 117MM)! Seems more money has poured into the media
campaign as well. Let's hope Elon pulls out some positive news over
the next week into the shareholders meeting.
△ ▽ • Reply • Share ›

Show more replies

Show more replies

Ken Cova • a day ago


So I'd be interested to see an analysis of how low the Tesla price needs to fall
before they become a legitimate target for a (presumably) hostile takeover.

Some of the legacy players are poorly positioned for the transition to EV's, and are
likely looking at much bolder remedies than they might have considered in the past.
Meanwhile, to secure ownership or control of GF1 would offer a fast elevator ride
right to the very top of the BEV field. Not to mention all the other stunning technical
advances that one would gobble up in a takeover, such as AP and the Maxwell
battery breakthroughs. (And consider just the value of the powerful entre into the
Chinese BEV market, with the very first foreign owned car factory . . .)

Ancillary businesses such as Powerwall/PowerPack, super capacitors and the


coming semi could probably be sold off to defray some of the cost.
△ ▽ • Reply • Share ›

Wallace > Ken Cova • a day ago


I'd like to know who is buying all the stock that is trading at the current deep
discount. I don't see a hostile takeover, I think Tesla is protected against that.
But what about a "friendly" takeover that allows Tesla to go private?

Wouldn't that be a hoot?


2△ ▽ • Reply • Share ›

Ken Cova > Wallace • a day ago


That would be excellent IMO, especially if it assured that control of
Tesla stays in Elon's audacious hands. My main concern about a
hostile takeover isn't that it would be bad for the company, but that the
dilution of the company's mission would be bad for Mother Earth.
△ ▽ • Reply • Share ›

Show more replies

Show more replies

David Reeck > Ken Cova • 7 hours ago


Foreign car companies manufacturing in China need a Chinese partner to
survive.
△ ▽ • Reply • Share ›

Ken Cova > David Reeck • 7 hours ago


That's an odd statement as there hasn't been anything else.
△ ▽ • Reply • Share ›

https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 10/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica

Show more replies

Maarten Vinkhuyzen • a day ago


Thanks Michael, great write up of what is real.
6△ ▽ • Reply • Share ›

martin0641 • a day ago


I've been watching the clickbait nonsense pile up for weeks, it's embarrassing with
these so-called journalists are publishing for clicks.
7△ ▽ • Reply • Share ›

PDiddy • a day ago


Tesla was never over valued at 360-270-240-180. Instead it's all the other car
companies that are over valued and should be on the cusp of being worthless.

Ford stock is at 10 right now? It should be at 1.


GM at 33? It should be 1.
Toyota at 117? It should be 1.

People think their ICEV they bought in 2005-2019 that sits in their garage right now
will still be worth money in the next 6 years. Those people should entertain the fact
that ICEV values may drop to almost nothing because many cities are ratcheting up
their emissions standards and may suddenly ban your car.

Those 4,000 pound "cars" will soon be paper weights. Just wait.
8△ ▽ • Reply • Share ›

PsychoKisser > PDiddy • a day ago


Other car companies are overvalued because "Ford, Toyota, and GM" aren't
making products that interest you? That's quite the, um, "interesting" leap of
logic.

And as for your second paragraph, I wouldn't quit my day job to become a
market analyst, if I were you. There is no way ICEVs drop in value to $0 (or
anything close to that level) in only 6 years.

Yes, electrification of transportation is underway and inevitable. And yes, it


will bring with it many changes, some small some very large, most incredibly
hard to predict in their exact nature and timing. And I, for one, wish it would
happen very quickly, but the simple truth is it won't. Far too many people love
their ICEVs and will keep buying them for several more ownership cycles.
4△ ▽ • Reply • Share ›

Roger Starkey > PsychoKisser • a day ago


Wait for the moment those ICEVs are recognised as "the expensive
option" by the consumer.
Money talks.
At that point, or actaully before, the legacy manufacturers have to
decide, "do we make ICEV's and risk not selling them, or jump into
EV's before we're pushed?"
The time is now.
5△ ▽ • Reply • Share ›

Show more replies

Ken Cova > PDiddy • a day ago


If we see much of an Osborne effect, with people delaying the purchase of a
new car because they only want an electric, the value of used ICE vehicles
may actually climb for awhile.
3△ ▽ • Reply • Share ›

Roger Starkey > Ken Cova • a day ago


If the value of used ICE increases, that's more incentive to look at
used EV's!
3△ ▽ • Reply • Share ›

Ed • a day ago
Let’s see:
Most envied products
Least environmental impact on the planet
World leading technology
Ever expanding charging network
https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 11/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
Ever-expanding charging network
Highest product margins
Growing demand for products
Emboldening cities to restrict ICE vehicles
Reshaping global automotive industry

But:
Steep growth inherently requires much cash
Massive investment needed in batteries, charging networks, new models, capacity,
China, etc.
US laws allow stock manipulators to enrich themselves at the expense of risk-taking
companies.
Stock being driven down sharply.

Apple needs to find a new, large market in which to invest their piles of cash. Is this
the moment for Apple to acquire Tesla? Apple support could accelerate the
transition to clean transport across the globe.
2△ ▽ • Reply • Share ›

Zachary Shahan Community Manager > Ed • a day ago


I really wish Apple would be smart (imho) and simply acquire 10% of Tesla.
△ ▽ • Reply • Share ›

Alan Wilson > Zachary Shahan • a day ago


Apple has lots of money could tip in 10B
1△ ▽ • Reply • Share ›

Show more replies

Robert Pollock • a day ago


Those that would bring Tesla down are the same people that would destroy the
planet, over money. They are not sustainable, and have to go.
4△ ▽ • Reply • Share ›

Destry311 • a day ago


Wrong! Please do your research....I will address just your 1st point. The 90k plus
delivery is very important because if it comes in lower then it is highly unlikely that
Tesla will not meet their ANNUAL guidance numbers which will hit the share price
hard.
1△ ▽ • Reply • Share ›

Load more comments

✉ Subscribe d Add Disqus to your siteAdd DisqusAdd


🔒 Disqus' Privacy PolicyPrivacy PolicyPrivacy

https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 12/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica

Sponsored Links

Play this Game for 1 Minute and see why everyone is


addicted
Desert Order

The five best super cars from the Geneva Motor Show
Square Mile

10 Countries It’s Super Easy To Immigrate To If You Live


In Egypt
Relocation Target

What Will Happen to Your Body If You Start Eating 3


Eggs Every Day?
Food Prevent

5 Best Exercises for People Over 40


Fitness Engage

10 Easiest Countries for Immigration From Egypt


Immigration DO

CleanTechnica is the #1 cleantech-


focused news & analysis website in
the US & the world, focusing primarily
on electric cars, solar energy, wind
energy, & energy storage. It is part of
Important Media -- a network of 20
progressive blogs working to make the
world a better, greener place.

The content produced by this site is for


entertainment purposes only. Opinions and
comments published on this site may not be
sanctioned by, and do not necessarily represent
the views of Sustainable Enterprises Media,

https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 13/14
6/1/2019 The Media's Story About Tesla Is Wrong, Facts Tell Another | CleanTechnica
Inc., its owners, sponsors, affiliates, or
subsidiaries.

© 2018 Sustainable Enterprises Media, Inc.

Invest Electric Cars Electric Car Benefits Electric Car Sales Solar Energy Rocks RSS Advertise Privacy Policy
Back to Top ↑
:)

https://cleantechnica.com/2019/05/31/the-media-is-telling-one-story-about-tesla-facts-tell-another/ 14/14

You might also like