Tesla faces turmoil as cashcows look nervously at share price falls.

Posted: March 27, 2018 by tallbloke in Subsidies

tesla-unfallBy Jim Collins

It is amazing to me that Tesla stock closed the penultimate day of February above $350 per share and today is struggling to hold $295 per share.  The volatility in TSLA shares has bitten the longs with a 15% decline in 19 trading days, and the bulls are struggling to make coherent arguments.  That points to the most pressing issue facing Tesla and its CEO Elon Musk: time.

The Tesla bull case is based on the idea that TSLA will dominate a future world in which battery-electric vehicles (BEVs) and autonomous vehicles (AVs) are prevalent in global markets.  The problem with that argument is that Tesla already dominates the global market for BEVs, and yet the company burned through $3.5 billion of cash last year.

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  1. E.M.Smith says:

    The problem for Tesla is that they sell a car at a very premium price based on the novelty and ‘special’ virtue signalling aspects… at a time when nearly everyone is selling an electric car.

    Chevy, Nissan, etc. etc.

    So why buy a Tesla at astronomical relative pricing?

    What’s so special? Heck, even toy makers have been making electric cars for decades. With radio control no less.

  2. EM I suggest a lot of Super(annuation) funds and some investment funds, whose leadership has gobal (Soros like) and “green” idealists, have bought the stock and are now trying to protect their investment. What was the crook energy stock in USA that collapsed and lost billions for shareholders called? (I think it was something like Enron). I have read that many University Superfunds have opted out of mining stocks (including coal, oil and gas) in favour of so-called “renewables” There are so-called “ethical” funds which have no ethics and waste funds investing in companies like “Tesla”. The question is how soon will banks and the stock exchange pull the plug on Tesla. If I was a market player I would short the company. As I put in my post on methane at cementafriend my super fund has investments in oil and gas producers and mining companies.

  3. Bitter@twisted says:

    I have been saying that “Enron” Musk is a con-artist got sometime.
    Maybe people with more money than sense have finally cottoned on.

  4. Bitter@twisted says:

    Dunno what happened to the keyboard…

  5. oldbrew says:

    Tesla will reach the subsidy limit in California the US for its Model 3 soon.
    – – –
    BMW sued in US over diesel emissions
    March 28, 2018

  6. Stephen Richards says:

    tesla is a circus supported Ponzi. It always was. Everytime it starts to fail Musk introduces some non functioning new model to boost shares. He has never met his own manufacturing targets. Never

  7. stewgreen says:

    BBC had a big report on Saturday about how Elon Musk has boldly been the first to come out against Facebook
    and remove both his corps.
    Then at the end of the report the BBC’s Dave Lee does emphasise an ulterior motive
    “At the moment Tesla has a bit of a customer service problem
    ..and disgruntled customers have found they can’t get a response
    ..The only way they been getting responses is by posting on Tesla’s Facebook page,
    so by getting rid of the Facebook page , Tesla have ridded themselves of this embarrassment”

  8. stewgreen says:

    BBC Tech Tent Rory Cellan-Jones is addicted to plugging Tesla
    By coincidence Tesla was chosen for a special stock by the BBC Pension fund
    it’s the highest named stock in a portfolio, where the vast majority of equities are actually hidden via third party investment trusts.

  9. stewgreen says:

    The stock price has dropped further to $279.18 a touch lower than it was 3.5 years ago (Sept 2014)

  10. Gerry Pease says:

    Oops! I inadvertently posted a link to the Ontario, Canada rebate list.instead of the CA list.

    Here’s the California list, and all Tesla models are still on it:

  11. oldbrew says:

    Road gets tougher for electric car innovator Tesla
    March 28, 2018

    Shares in the California electric car innovator dove more than eight percent in afternoon trade Wednesday a day after an 8.22 percent slide. The declines have wiped out some $9 billion in market.

    In a sign of heightened mistrust, interest rates charged by institutions lending money to Tesla jumped to 7.74 percent as compare with 6.56 percent at the end of last week.
    . . .
    Moody’s downgraded Tesla’s rating this week, citing a shortfall in Model 3 production and negative cash flow.

    Tesla also faces deadlines in the coming year to repay hundreds of millions of dollars in debt, and will need to refinance maturing bonds to avoid running out of money.

    Read more at: http://phys.org/news/2018-03-road-tougher-electric-car-tesla.html

  12. E.M.Smith says:


    Not only did Moody’s downgrade, they put them on investment watch list. That’s the first step toward calling them junk… (of several steps…)

    You get a couple of shots across the bow with downgrades and watches, then they start to tell institutions to get out ahead of the flood…

  13. oldbrew says:

    Tesla Asks for Model 3 Factory Volunteers to Prove ‘Haters’ Wrong
    29 March 2018

    Tesla Inc. exhorted its factory workers to prove wrong the “haters” betting against the company and is letting a small number of volunteers join the effort to ramp up output of the crucial Model 3 line.


    Sounds desperate :/
    – – –
    Tesla recalls 123,000 cars for power steering fix
    March 30, 2018

    Tesla shares that ended the Nasdaq trading day up lost 2.5 percent to $259.40 after hours.


  14. tallbloke says:

    Stew Green; Tesla was chosen for a special stock by the BBC Pension fund

    Hah! Aha. Ahahahaha.


    The writing is on the wall


  15. oldbrew says:

    Elon Musk’s April Fools’ Prank Totally Backfired