Why the Shanghai Government is Helping Tesla Secure the Gigafactory 3 Funding

Tesla is well on its way to sourcing the initial $2 billion in funding for the Gigafactory 3 in Shanghai, China. According to people close to the matter, the local Shanghai government is the middle-man in negotiations with at least four state-owned banks to secure funding for the manufacturing unit. The banks are already vetting Tesla as an applicant for said loan, and some of them have already signed NDAs (non-disclosure agreements) with both Tesla and local government authorities in Shanghai. Read More


Jim Cramer: I wouldn’t recommend Tesla up here, but You’d be crazy to short Tesla

CNBC’s Jim Cramer made some interesting comments about the on going Elon Musk vs Tesla Short-seller battle.

“Who in his right mind is going to sell Tesla if there’s even a possibility of a leveraged buyout?” Cramer said, referring to Musk’s assertion that funding has been “secured” and a Financial Times report that said Saudi Arabia’s sovereign wealth fund bought a 3 to 5 percent stake in Tesla. Read More


Buyout or not, Tesla is already making some real good money on Model 3

Tesla delivered the first Dual Motor Model 3 on July 28th, 2018. But the company, as you would expect them to, started registering Dual Motor VINs on June 1. Since then, Tesla has registered more than 25K Dual Motor VINs.

To put that in better perspective, between June 1 and August 6th, Tesla registered 35,317 VINs, and nearly 70% of all VINs registered are Dual Motor. Read more


Are Tesla Options Traders Betting the Stock Price to stay above $380?

The Options market is a fairly decent indicator to gauge market sentiment. As of now, options traders are betting on the long side of Tesla stock.

Bullish bets on Tesla has increased in the August 10 Weekly option market. Traders have piled on August 10 weekly 380 calls, followed by 370 and 385 calls. Read More


Tesla Teases Owners with a Enhanced Autopilot 14 Day Trial

Tesla emailed Car owners who have not yet purchased the Tesla Autopilot that they now have the option to experience Enhanced Autopilot for 14 days.

According to Tesla, “The Enhanced Autopilot trial provides you with the opportunity to experience our latest driver assistance features for 14 days, at no cost. This includes access to Autosteer, Traffic Aware Cruise Control, Auto Lane Change, Summon and Autopark.” Read more


Why Tesla and Model 3 Have No Competition in Sight for Another 5 Years (At Least)

With all this talk about Tesla going private, hitting record VIN registrations for the Model 3 and the Chinese Gigafactory 3 going full steam ahead, not many people are talking about worthy opponents to the Model 3.

First, let’s see what they’d be up against. The Model 3 is now one of the Top 10 best-selling cars in the United States. That’s not within the EV segment and not even within the entry-level luxury segment where it’s operated until now. That’s their overall ranking in the passenger car segment in the U.S. as of July 2018. And that ranking is only going to get higher as Tesla ramps up production. Read More


The Last Hurrah: Tesla Shorts Refuse Exit, Add to their Positions

Many of us expected Tesla shorts to start covering their position as Tesla CEO Elon Musk announced his decision to take the company private. The announcement played a huge role in driving the stock price up, causing billions of dollars in mark to market losses to Tesla shorts.

But the battle hardened Tesla shorts have refused to cede an inch. Infact, they may have  added to their position. Read More


Why the Tesla Take-Private Deal Might Actually Be Smaller Than the TXU Deal

The take-private deal teased by Musk and being contemplated by Tesla’s BOD has been pegged as the largest transaction of its kind if it goes through. But most media reports seem to be counting it wrong. At $420 a share, the market cap will be roughly about $70 billion. Take out Musk’s 20% and you have about $58 billion.

Compare that with the $45 billion TXU buyout and what you have is a sensational deal that is the biggest so far. $58 billion is the figure being bandied about by the media, but is that the reality of it? Some of the assumptions behind that figure are being offered as facts when, in reality, they are not. Read More


The Rationale and Legal Implications of Tesla’s Go-Private Venture

It might be a good idea for Tesla to go private, but there are a few things CEO Elon Musk has dribbled out in tweets that are contrary to all the known methods of taking a public company of this size private.

First of all, there’s a limit on how many investors a company can have before it is forced to go public. Securities experts peg this at 2,000, with an exemption of a certain number of employees. Tesla has far more than that at the moment, and Musk’s open invitation to them to stay on as investors in a private company would require a very unique structure to address regulatory frameworks. Read More