Elon Musk Had a Hilarious Response to More Than 60,000 People Canceling Their Tesla Model 3 Orders

By Justin Bariso Founder, Insight 

The Tesla Model 3, the mass-market electrical vehicle that may completely change the automotive industry, is here–and people are excited.

Well, most people, anyway. There are more than a few customers who are also disappointed.

About 63,000 people have canceled preorders for the electric car over the course of the past year, as revealed earlier this week by Tesla CEO Elon Musk on the company’s quarterly earnings call. (The number of orders dropped from about 518,000 to 455,000, Musk said.)

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State Funded Tesla-SolarCity Factory Slips Into Outright Corruption

Tesla’s merger with solar panel provider SolarCity is getting off to a rocky start as the merged company must now deal with corruption charges plaguing one of its solar panel facilities in New York.

Contractors working on a nearly $1 billion ($900 million) project in Buffalo haven’t been paid for work they started in July – the lack of cash has forced the state to lay-off workers. Tesla-SolarCity hopes to use the completed facility as a one-stop shop to produce solar panels, battery chargers, and electric vehicles.

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Insider Selling: Tesla Motors Inc. (TSLA) Insider Sells 33,430 Shares of Stock

Tesla Motors Inc. (NASDAQ:TSLA) insider Jeffrey B. Straubel sold 33,430 shares of the business’s stock in a transaction on Tuesday, November 22nd. The shares were sold at an average price of $190.82, for a total transaction of $6,379,112.60. Following the completion of the transaction, the insider now owns 359,655 shares of the company’s stock, valued at $68,629,367.10. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website.

Tesla Motors Inc. (NASDAQ:TSLA) opened at 196.65 on Friday. Tesla Motors Inc. has a 12 month low of $141.05 and a 12 month high of $269.34. The stock’s market capitalization is $29.48 billion. The stock’s 50 day moving average is $194.23 and its 200-day moving average is $210.26.

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Tesla’s stock has had a rough 3 months — and it doesn’t look like things will get better

Tesla shares have declined almost 20% in the last three months, even as the automaker reported a surprisingly profitable third quarter and signaled to Wall Street that it has curtailed its cash burn and could finish 2016 with more money in the bank then expected.

The immediate problem for Tesla is political.

A Trump administration is unlikely to be friendly to electric cars — certainly not as friendly as the Obama administration. Obama was in the White House for almost the entirety of Tesla ascent as both a carmaker and a stock, with Tesla’s IPO taking place in 2010 and the Model S sedan hitting the streets in 2012.

Fortunately, Tesla is far more well established than it was when Obama took office in 2009. CEO Elon Musk’s company will sell a record-number of electric cars in 2016 — probably about 80,000 — and has a market cap of around $30 billion. It can hold on for a while, even if federal policies turn against it. And don’t forget the nearly 400,000 per-orders Tesla has for its forthcoming Model 3 mass-market vehicle.

The worry for the automaker now is that the end of the year and beginning of the next haven’t been happy financial times for the company, historically. Tesla shares have a pattern of sliding through the fourth quarter and continuing their decline into the first, only recovering once it establishes guidance for deliveries for the next year.

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Musk’s Tweet Fails To Recognize That Tesla Has Crossed The Rubicon With The Inventory Model

While many commentators have expressed disbelief that a CEO is not aware of the Company’s discounting practices, let’s give Mr. Musk the benefit of doubt. It is not that difficult to see that this unfocussed CEO does not know what is going on in his Company. Life is too busy contemplating life on Mars and trying to force the wrongheaded acquisition of SolarCity (NASDAQ:SCTY).

However, if Mr. Musk did not know the sales practices at Tesla, it brings forth a whole different set of questions:

– How can a competent CEO not know the sales practices at his Company? If the argument is that Mr. Musk does not have the time, then we suggest that the Company’s board is once again asleep at the wheel.

– What was Mr. Musk expecting that his sales teams would do when he sent a company-wide email to push hard to get strong Q3 results ahead of capital raise?

– Does Mr. Musk not discuss sales and promotional strategies with his sales and finance teams?

– Is Mr. Musk not aware that Tesla builds spec cars (also called “inventory”) which are not build-to-suit?

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Tesla Sued Because ‘Insane Mode’ Isn’t Insane Enough

According to 126 Tesla customers, the Model S sedan P85D performance version can eat dirt, because its “insane mode” isn’t as insane as the company claims.

Bloomberg reports that the customers, who live in Norway, have now filed a lawsuit against Elon Musk’s automotive company. They’re looking for “unspecified reimbursements” because they believe the car’s “insane mode” isn’t exactly as advertised.

“[It] has too low horsepower,” Kaspar N. Thommessen, a lawyer for the customers, told Bloomberg. “And of course, it affects the car’s performance, according to the consumers.” One customer told the Norwegian newspaperDagens Næringsliv that the car’s advertised horsepower—700—and its acceleration claims—0 to 60 mph in roughly 3.3 seconds—were total bullshit. (In 2015, Consumer Reports noted that it took 3.5 seconds.)

Tesla, for its part, said that tests from both the company and outside groups show the stated specifications are indeed accurate. “[The tests have] demonstrated that the Model S P85D’s acceleration and motor-power numbers have always been accurate … [and] confirmed as accurate by European regulatory authorities,” a Tesla spokesman told Bloomberg.

In June, Norway’s Consumer Council ruled against Tesla in a similar case, awarding Model S P85D buyers about $6,000 each over claims the car didn’t meet its power specifications. But as the website Electrek explained at the time, that dispute may have been more a symptom of deceptive advertising rather than outright lying:

The issue revolved around the way Tesla was listing the power of its motors for the Model S P85D, which has two motors. When first introducing the vehicle, Tesla was marketing the vehicle as having a combined motor output of 691 hp (467 in the back and 224 in the front).

While those are indeed the correct outputs of each motor, the vehicle was never able to achieve those numbers due to several other limitations than only the combined potential output of the motors.

Tesla claimed that they always made it clear that the numbers were for the motors and not the vehicle itself. The automaker also highlighted that it didn’t actually change the actual performance ratings of the Model S P85D, but some owners still felt deceived.

Either way, for upwards of $100,000, it’s not surprising at least a few customers are quibbling over the car’s performance. According to Bloomberg, the Oslo District Court will hear the case in mid-December.

The most recent dustup is yet another in Tesla’s long line of new headaches. Yesterday, we reported that hackers were able to infiltrate the Model S from 12 miles away; last week, the company and Autopilot supplier Mobileye got into a public fight over safety concerns. And then there was the lawsuit Tesla filed last week against an oil executive, claiming he impersonated Elon Musk using a dumb Yahoo email address.

Hey, Elon, you doing okay, buddy? Do you need a facial or something? Maybe some wine?

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CFTR APPLAUDS CONGRESSIONAL PROBE INTO SOLAR’S CORRUPT WASTE OF TAXPAYER MONEY

UNIT FORMED BY REAGANITES TO FIGHT CORPORATE AND GOVERNMENT CRIMINAL BEHAVIOR CALLS FOR COMPREHENSIVE INVESTIGATION.

ALEXANDRIA, VA – It was revealed this week that the Senate Finance Committee and the House Ways and Means Committee have launched a probe into tax incentives paid to solar companies, sending letters containing a series of questions to seven U.S. and international solar companies including Elon Musk’s beleaguered SolarCity.

“This investigation is an important step in cleaning up what has become a disgraceful abuse of taxpayer dollars in the solar industry,” said Diana Banister, executive director of Citizens For The Republic (CFTR). “The Senate Finance Committee and the House Ways and Means Committee are right to begin holding the likes of SolarCity accountable for the egregious waste of taxpayers’ money. But more must be done. CFTR is proud to continue its work in exposing the fraudulent solar subsidy network and will continue to push lawmakers in taking action against these crimes.”

Solarcity, has been propped up by more than $2.5 Billion in government subsidies, $1.5 Billion of which comes from the Solar Investment Tax Credit (SITC). The SITC is a 30% subsidy to every solar panel sold in America and was extended in last year’s Omnibus package. The credit, intended to help individual homeowners buy solar panels, instead lines the pockets of Solarcity’s executives, including Musk and his cousins, the Rive brothers.

“Elon Musk has bilked the American taxpayer out of more than $4.9 Billion in subsidies, grants, and government sweetheart deals. With that, he has produced a solar financing company that’s in financial free fall. A car company whose average vehicle sells for more than $100,000 and a rocket company that lost $118 million of cargo in one explosion,” said Banister. “It’s time for congress to stop taking money from hardworking Americans and giving it billionaires and their friends.”

Citizens for the Republic (www.CFTR.org) is a conservative 501(C)(4) grass roots lobbying organization dedicated to promoting the ideology and political philosophy of Ronald Reagan. Reagan established the original CFTR in 1977. In 2010, a group of Reagan stalwarts re-launched the organization. Its board includes Chairman Craig Shirley and Director Diana Banister.

To schedule an interview with Diana Banister, please contact Brendan Bradley with Shirley & Banister Public Affairs at (703) 739-5920 or bbradley@sbpublicaffairs.com.

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Tesla’s Lenders Place SolarCity In A Leper Colony

Summary

  • Tesla’s revolving credit lenders want no part of SolarCity.
  • They won’t allow Tesla to guarantee any SolarCity debt, and they’ve made it difficult for Tesla to downstream borrowed funds.
  • What? You didn’t know that? I’m not surprised; Tesla did its best to hide those facts.
  • The recent SolarCity bond offering is a new low – huge red flags, and tremendous potential for more insider looting.
  • But first, a quick look at the Tesla fire sale in progress. Get an extra $1,000 savings on your new Tesla at the link I provide. (You’re welcome!).

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