Daimler Sold It’s ~10% Tesla Stake For $780M In 2014

Daimler and Tesla first started working together over 10 years ago, with Musk’s electric automaker Tesla Inc!. providing lithium-ion battery packs and charging technology for a Daimler electric smart car.

How FOBO Ruined Daimler’s Billion Dollars Tesla’s Share Opportunity

FOBO is driven by narcissism because when you have FOBO, you’re putting your interests well before anybody else’s. FOBO means Fear Of Better Option.

Tesla was the powertrain provider of Daimler before the two went their separate ways in 2014. The powertrain was used to power the A-Class and B-Class electric cars before Daimler divested from the company in 2014.

In 2009, Daimler paid $50 million to acquire a stake of almost 10% in Tesla. That almost 10% stake in Tesla was sold in 2014 sadly for roughly $780 million. Daimler could be sitting on a massive wealth of over $5 billion in Tesla stock ownership as of today, had they not sold their stake in Tesla.

Just a decade later, Tesla is now worth over 8 times Daimler, and is now the world’s most valuable car manufacturer, with a market cap of $464.339 billion.

Tesla’s average stock price in 2014 was $223.3291, before the 2020 5-1 stock split ofc. At $223, the company market cap was below $50 billion.

Tesla-Mercedes Electric Van Coming Soon?

Elon musk in 2018, once suggested it may be interesting for Tesla to work with Daimler/Mercedes on an electric Sprinter. This is something most YouTubers are not talking about, and nobody seems to see this happening. Am I alone on this?.

Most Tesla followers are predicting Tesla may build a CyberVan, but in my opinion, Tesla will possibly work with Daimler to build an electric van, but I doubt it would be named CyberVan.

Maybe interesting to work with Daimler/Mercedes on an electric Sprinter. That’s a great van. We will inquire.

— Elon Musk (@elonmusk) November 19, 2018

Elon Musk has also suggested Tesla may be working as a power-train supplier soon, as he would love to see other ICE car manufacturers go all-electric in the nearest future, and if that requires Tesla to help them out with powertrain technology, so be it.

To be continued :D.

2020 Top 6 Carmakers Making Profit So Far In The German Market – Guess Where Tesla Ranks?

Remember when Ford warns of a $2 billion loss in the first quarter due to coronavirus pandemic?. It is known to most car enthusiasts that the first half of the year has been a horrible one for most ICE car markers. Tesla is arguably the only vehicle manufacturer that stands up tall and keeps growing by building factories after factories.

Ford CFO Tim Stone warned investors in April that the company expected to lose more than $5 billion, on an adjusted pretax basis, during the second quarter as the pandemic shuttered factories and severely hampered auto sales, more than doubling the first-quarter’s $2 billion financial loss.

This interesting study by industry expert Ferdinand Dudenhöffer shows that.: accordingly, the car sales of the VW Group in the first half of the year fell by 28%, that of Toyota by 29%. A disaster. But broken down to the individual vehicle, it looks a little different. As Dudenhöffer analyzed, Volkswagen made a loss of 415 euros per car sold, while Toyota still earned 533 euros per car sold. This shows “that the VW group must certainly make more adjustments than Toyota,” writes Dudenhöffer.

The study shows that only one car company Porsche from the Volkswagen Group was able to beat Tesla in Germany in the first half of 2020. and only 5 car manufacturers, made a profit in the German market so far January – June 2020.

1. Porsche (VW Group) +9,853 euros per vehicle
2. Tesla +2,890 euros per vehicle
3. GM +780 euros per vehicle
4. Skoda (VW Group) +748 euros per vehicle
5. PSA-Opel +707 euros per vehicle
6. Toyota +533 euros per vehicle

Any company not listed above has made nothing but losses in the German market (and highly possibly in other countries as well). Volkswagen, Daimler, Fiat, Ford, among others reported huge losses for the first half of the year 2020.

“Elevator music is underrated ” – Elon Musk’s Coded Tweet Decoded!.

Am going to decode the latest coded tweets from Tesla CEO Elon Musk in this post.

• Date: If we take a look at the time: 11:01 PM, it has almost no meaning at the moment. As 11 could be the 11th day in January 2021, or simply the 1st of November 2020.The Meaning: Both of these dates have no known meaning at the moment. So I will watch out for these two days.
• The Video: The video share by the 4th richest man in the world is a video of a part of SpaceX rocket, fairing being caught by Ms Tree. Yesterday Falcon 9 launches 58 Starlink satellites and 3 Planetlabs SkySats – the first time a booster has completed six flights to and from orbit. The Meaning: It can only mean Elon Musk reminding Tesla investors that there is strong support below the present price level. And they need not fear.
• “Elevator music is underrated“: This is the most interesting part. If you google the meaning of Elevator music, you will find this: “What does Elevator mean?: one that raises or lifts something up: such as. a: an endless belt or chain conveyor with cleats, scoops, or buckets for raising material. b: a cage or platform and its hoisting machinery for conveying people or things to different levels. c: grain elevator.” – http://www.merriam-webster.com. “Platform” is another name for Elevator. “Elevator music, more commonly known as Muzak, came to use in the 1922 with original purpose to calm the fearful passengers who used the elevators for the first time.” – http://www.elevatorhistory.net

DECODING

Elevator music came to use in the 1920. Tesla Stock price yesterday hits a $1,920 mark. Is that a coincidence?

Lots of investors must have sold their positions yesterday thinking the rally was based on no news, according to most analysts.

The stock’s day’s range is ($1,845.11 – $1,923.87) and Tesla Market Cap. is now $351.682 billion.

Elevator music is underrated

— Elon Musk (@elonmusk) August 19, 2020

Tesla CEO Elon Musk in May 2020 said the price of his electric vehicle giant company was too high in his opinion when the shares were trading around $800.

Tesla Is Now Worth $342 Billion – Elon Musk Now World’s 4th Richest Man

Check this one out guys; found this genius piece on Twitter. Ofc, I am in Germany which happens to have a different time-frame than the USA, so it wasn’t easy for me to figure this one out!.

Found this on twitter.

“Chairs are underappreciated“

Check this last one out guys, in January 28th 2020, Elon musk said “Chairs are underappreciated“.

Chairs are underappreciated

— Elon Musk (@elonmusk) January 28, 2020

This kind of tweets are not common. Only Tesla CEO is able to pull them off nicely, without getting into any sorts of troubles. Genius!.

“Tesla is absurdly overvalued” – Elon Musk’s Coded Tweet Decoded!.

Am going to decode 2 top coded tweets from Tesla CEO Elon Musk in this post. This is a post I wrote some weeks ago but just didn’t publish it until today.

Tesla CEO Elon Musk in May 2020 said the price of his electric vehicle giant company was too high in his opinion when the shares were trading around $800.

Tesla Is Now Worth $342 Billion – Elon Musk Now World’s 4th Richest Man

“Tesla shares tumble as Musk says company’s stock is overvalued” became a hot topic on the internet and on twitter, as investors question if his twitter account has not been hacked, again!.

The tweet wiped off $14 billion (€12.8 billion) of Tesla’s market value and some $3 billion from Musk’s own stake in Tesla. The guy was literally telling us what he believed was going to happen in August, but we were to blind to see.

Tesla stock price is too high imo

— Elon Musk (@elonmusk) May 1, 2020

I think Elon Musk was trying to indirectly suggest the share price of Tesla was ridiculously undervalued?. And he was kinda advising we the followers/investors to consider buying more shares of the electric vehicle giant.

Is your mind blown yet?. keep reading.

Check this out guys, In 2017, Elon Musk replied to a post from a Tesla follow, which reads: “Stock price reflects the future (potential) of the company, not the present… #101“, are you familiar with what happened after that tweet?.

The CEO then replied with: “Exactly. Tesla is absurdly overvalued if based on the past, but that’s irrelevant. A stock price represents risk-adjusted future cash flows.”.

Exactly. Tesla is absurdly overvalued if based on the past, but that's irrelevant. A stock price represents risk-adjusted future cash flows.

— Elon Musk (@elonmusk) April 3, 2017

The next time to see the Electric giant CEO tweet about price of the Stock, take your time to dig a bit deeper, and try to figure out what message he is trying to convey to you.

Check this one out guys; found this genius piece on Twitter. Ofc, I am in Germany which happens to have a different time-frame than the USA, so it wasn’t easy for me to figure this one out!.

found this on twitter.

Who here remembers when Elon Musk tweeted that TSLA stock was too high?, He tweeted that on May first. 5/1. 5 for 1 split. That tweet was his way to telling us he was going to split the stock.

“Chairs are underappreciated“

Check this last one out guys, in January 28th 2020, Elon musk said “Chairs are underappreciated“.

Chairs are underappreciated

— Elon Musk (@elonmusk) January 28, 2020

This kind of tweets are not common. Only Tesla CEO is able to pull them off nicely, without getting into any sorts of troubles. Genius!.

Four Charged With Fraud In Latest VW Dieselgate Legal Development

German prosecutors have filed fraud charges against three former board members and a retired senior employee at Audi in the latest dieselgate legal development, which has so far cost Volkswagen more than $35.5 billion in compensation, fines, and costs for rectifying engines.

In 2015, Audi admitted cheating emissions tests on 11 million vehicles worldwide. Audi, a member of the Volkswagen Group has its roots at Ingolstadt, Bavaria, Germany. 

CNN is reporting that Munich prosecutors said on Thursday that the latest four defendants were accused of “fraud, indirect false certification, and criminal advertising”. Although their names were not given.

The former senior employee charged on Thursday is accused of having initiated the development of engines for Audi, VW and Porsche vehicles equipped with so-called “defeat devices“, engine software that masked emissions levels.

The three former board members are accused of having known about the manipulations and initiated or failed to prevent further sales of affected Audi and VW vehicles at various times between October 2013 and September 2015.

TRIALS

• Former Audi boss Rupert Stadler already faces charges relating to the affair. He is due to appear in court later this year.
• Former Volkswagen chief executive Martin Winterkorn, who was in charge of Europe’s biggest car group when the cheating was uncovered, has also been charged and is awaiting trial.
• Former Audi and VW director Axel Eiser was arrested in Croatia in June based on an international arrest warrant issued by the US.

CONCLUSION

In July, offices across Europe were raided over suspicions that Fiat Chrysler and truck maker Iveco could also have fitted vehicles with illegal defeat devices.

The new age of electric vehicles that have already been initiated successfully by Tesla should help put a full-stop to this dieselgate madness.

According to EPA, a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year. This assumes the average gasoline vehicle on the road today has a fuel economy of about 22.0 miles per gallon and drives around 11,500 miles per year. Every gallon of gasoline burned creates about 8,887 grams of CO2.

EVs help reduces this threat because almost all U.S. electricity is produced from domestic sources, including coal, nuclear, natural gas, and renewable sources. EVs can also reduce the emissions that contribute to climate change and smog, improving public health and reducing ecological damage.

Tesla Could Raise More Capital Before S&P500 Inclusion

New Audi boss Markus Duesmann is assembling a team of about 200 engineers within parent company Volkswagen Group to develop a new computer-driven vehicle system, he told Reuters. This is enough reason why you should stop listening to any Wall Street analysts that valuates Tesla as a car company. Markus gets it, wall street don’t.

Tesla is now super ready for s&p500 inclusion, after posting second-quarter profit last week, which makes it the fourth consecutive profitable quarter.

Amid a global pandemic and a market crash, which in return has crippled other carmakers’ ability to be profitable, Tesla posted a profitable quarter and according to the CEO Elon Musk, demand is never a problem, while other carmakers are begging the gods for demand to rise in the second half of the year. Am I communicating?.

Elon Musk’s idea of selling Tesla Short Shorts (which sold out within hours) before the Q2 date was enough to suggest Tesla short-sellers were about to get liquidated.

The question now is, will Tesla use this amazing opportunity to raise more capital, to easy market liquidity, to have about 25 million shares to sell to the incoming hungry institutional funds?. In my opinion, the answer is Yes!.

Gary Black (CIO Equities Goldman Sachs Asset Mgmt) explains it better bellow:

1/ There’s still a lot of questions about a capital raise, so I will try to explain it here again. There won’t be a capital raise unless S&P asks, Tesla to do it to ease the liquidity of indexers trying to buy 25M shares over 5 days once S&P announces it is adding Tesla to the S&P500.

2/ There’s $4.6T of S&P 500 index money who will need 80bp (float adj 147Mx$1,500/$27.6T=80bp), or a total of 25M shares ($4.6T x 80bp/$1,500). If TSLA does a $5-$10B secondary after S&P announces, Tesla can sell 3-7M shares to these indexers who need 25M.  Tesla still pops 10-15%.

3/ Even though Tesla doesn’t need the cash (Tesla has $8.6B in the bank and will generate $1B FCF after CapEx in 2H), this could be a unique opportunity to put the screws to competitors reeling from the recession. Finally, Tesla can eliminate its net debt (now $5.5B), paving the way...

4/ for an inv grade credit rating in 2021. S&P inclusion (w/indexers holding shares forever), combined with an inv grade rating would reduce Tesla beta (now 1.5x) and cost of equity (now 10%) to 8-9%. The PV of cash flows would rise 10-15%, implying a 10-15% higher stock price.

Gary Black

If Tesla indeed raises more capital and get included in the s&p500, this will put Tesla Inc! six-plus years ahead of competitions, and finally set the stock price of $1500 as a strong bottom.

According to Cathie Wood of Ark Invest, ARK believes Tesla has strategic & tactical reasons to launch a ride-hailing service with human drivers before its robotaxi network launches next year. If successful, which we believe will be the case, a Tesla ride-hailing service will lower the probability of our bear case substantially during the next five years, bolstering our base case at ~$7,000. We are encouraged that few analysts are modeling this possibility!

“Tesla Might Be ‘Mind-Boggling Cheap’ at $1,500” was the title of an article shared by Barrons yesterday after Morgan Stanley analyst Adam Jonas raised his bull case estimate for Tesla stock to $2,500 a share.

Feel free to bet against Tesla, but I believe it’s very dangerous to bet against Elon Musk.

Renault Post Record Loss of $8 Billion

French carmaker Renault SA’s alliance with Japanese partner Nissan Motor Co. has cost the French carmaker big time, leading to a record loss of $8 billion in 2Q.

Nissan partnership accounted for a loss of 4.8 billion euros, including 4.29 billion euros of impairments and restructuring costs, the automaker said.

This is a catastrophic failure and hopefully, it won’t lead to a bigger domino effect that may force the French car giant to embark on a short road to bankruptcy.

According to Bloomberg, The global car-making alliance, which also includes Mitsubishi Motors Corp., has been shaken to its core since the November 2018 arrest of Carlos Ghosn, who was chairman of all three companies. The partnership was meant to create a global powerhouse to compete against Volkswagen AG and Toyota Motor Corp. But an aggressive strategy fixated on volume growth proved wrongheaded when auto sales began to decline, and management turmoil has plagued efforts to adjust. Losses are now piling up, further testing their union.

“The No. 1 risk to the alliance is Renault,” said Koji Endo, an analyst at SBI Securities in Tokyo. “They’re supposed to strengthen each other and offset weaknesses, but the risks are starting to look much bigger than the opportunities.”
Renault shares plunged as much as 8.8% on Thursday and have fallen 47% this year.

Just like General Motors that posted a loss of $806 million and burned through billions of dollars of cash in 2Q, which was the worst three months of the year for the auto industry as the coronavirus pandemic shuttered factories and devastated sales, except for Tesla.

Is this the beginning of the end for some major car markers?, or will their Governments bail them out should in case of incasity?.

All Tesla Giga Factories In A Single Photo

In this wonderful post by a Reddit user u/brandude87, he compared the size of Tesla Giga factories graphically, placing them next to each other for perfect size comparison.

Giga Texas is a 2,000-acre site, and Tesla has already started the construction work. From the image, in my opinion, we could still see another Gigafactory in Asia, and I believe it will be a bigger one than Giga Shanghai.

As one of the companies growing massively year over year, Tesla is building factories after factories, to ramp up production of its models.

Giga Texas is the winner here. The factory once finished, is going to mass-produce Model 3, Model Y, Cybertruck, and Semi which is set to begin in 2021.

Tesla Giga Berlin is already coming together at an impossible-seeming speed, as predicted two days ago by CEO Elon Musk.

Giga Berlin will come together at an impossible-seeming speed. The prefabricated construction method in Germany is extremely impressive.

— Elon Musk (@elonmusk) July 27, 2020

Checkout the photos below, as shared by a Tesla fan on twitter https://twitter.com/Gf4Tesla

#GigaBerlin

July 28 / 2020

Thanks Tommy, @RalfThomas, for your daily commitment, it is really great how you provide us with up-to-date pictures.
Unfortunately I can only make it to Giga max. 2 times a week.

Tommy you are great. 👍🤝 pic.twitter.com/85H9DMJR32

— @GF4Tesla 🇩🇪 🏗️🏗️.build #GigaBerlin. (@Gf4Tesla) July 28, 2020

Here is a video of Giga Texas as shared by YouTuber Terafactory Texas:

The Reason Behind Bernstein analyst Toni Sacconaghi $900 Tesla PT. – Video

In this video, Bernstein analyst Toni Sacconaghi asked Tesla CEO Elon Musk and the CFO of Tesla Zach Kirkhorn two highly sensitive and super important questions.

Watch/Listen to how Elon Musk and Zach Kirkhorn answered the two questions from Sacconaghi asked during the Q2 earnings call.

Sacconaghi downgraded the stock to underperform from market perform on Tuesday in a note to clients, with a $900 price target, which is about 40% downside from yesterday’s closing… More here: Tesla Downgraded By Bernstein analyst Toni Sacconaghi to $900

Tesla To Hire Over 1000 People In Shanghai

Electric vehicle giant Tesla Inc!. goes nuts in a cumbersome hiring spree, in anticipation of the made in china Model-Y sport-utility vehicles.

Tesla’s human resources department’s official WeChat account posts indicate Tesla is on a massive hiring spree, Reuters reports.

The electric vehicle giant plans to hire over 1000 new people to help move our world to a super sustainable one.

Tesla sought to hire designers in China, although the posts did not indicate how many Chinese designers the electric vehicle giant is planning to hire.

According to the posts, Tesla wants to hire about 1000 factory workers and as many designers as possible, as Tesla is looking to build a Made and Designed in China models.

Another job post by the Lingang local government indicates that Tesla also plans to hire over 500 workers for bodywork, stamping, and paint jobs. Also, Tesla plans to hire over 100 workers for quality checks, 200 for warehousing and logistics work, and about 20 workers for security positions. Crazy hiring spree right?.

In Q2, Tesla delivered about 30,000 vehicles in China, most of which are made in China. Tesla is presently constructing new manufacturing facilities for the manufacturing of Model Y, which is expected to begin next year in Giga Shanghai.