Avoid Tesla due to aggressive discounting: Analyst

Pacific Crest told investors to be wary of Tesla shares, citing the profit margin risk from increased price discounting.

“Checks indicate Model X orders have improved, but we detected aggressive Model S discounting at U.S. sales centers intended to maximize Q3 deliveries,” analyst Brad Erickson wrote in a note to clients Tuesday.

“So while a strong Q3 delivery number could provide some reprieve for the bulls, our view of declining quality for incremental Model S demand poses ASP and margin risk while calling longer-term demand into question.”

Implication of sabotage adds intrigue to SpaceX investigation

Elon Musk, SpaceX’s founder and chief executive, has called the failure “the most difficult and complex” the company has ever had. About a week after the explosion, he pleaded with the public to turn in video or audio recordings of the blast and said that the company has not ruled out sabotage as a factor.

“Particularly trying to understand the quieter bang sound a few seconds before the fireball goes off,” he wrote on Twitter. “May come from rocket or something else.”

Since then, SpaceX, which is leading the investigation with help from the Air Force, NASA and the Federal Aviation Administration, said it is narrowing down on the cause of the explosion, focusing on a breach in a second-stage helium system.

At a conference in Mexico this week, Musk said that finding out what went wrong is the company’s “absolute top priority,” but he said what caused the explosion is still unknown.

“We’ve eliminated all of the obvious possibilities for what occurred there,” he said. “So what remains are the less probable answers.”

He didn’t say what those might be.

The Air Force’s 45th Space Wing, which is helping SpaceX with the investigation, declined to comment because the investigation is ongoing.

Lawmakers are fighting a space battle on Capitol Hill over SpaceX and its biggest competitor

Raising issues about SpaceX, its launch failures and anomalies, and its relationship with the US government is not a first for Coffman.

As a member of the House Armed Services strategic forces subcommittee (which oversees military spacecraft), he did so in 2014, and in 2015 on multiple occasions.

The senator faces a tough 2016 reelection campaign in his district — the home base of ULA.

Records show that, during his political career, Coffman has accepted at least $51,800 in campaign donations from Lockheed Martin and $21,000 from Boeing, and has publicly defended ULA.

In the 2016 election cycle, SpaceX contributed money to at least half of the 24 signers of the congressional letter that responded to (and contested) Coffman’s. Flores himself has taken at least $2,000, and cosigner Loretta Sanchez (D-CA) accepted at least $7,000 from SpaceX.

Flores also presides over district 17 in Texas, which is home to SpaceX’s 4,000-acre rocket development facility in the town of McGregor.

Samanthan Masunaga, a reporter for the Los Angeles Times, captured the relationship well in a story published in May 2016:

“Traditional launch providers see their market being threatened by nontraditional entrants,” said Loren Thompson, aerospace analyst with the Lexington Institute, an Arlington, Va., think tank. “Basically, this is competition between launch providers over market share and money that in the political process gets related to local interests.”

Business Insider contacted Rep. Coffman’s press secretary as well as ULA, Boeing, and Lockheed Martin about campaign funding and other issues related to this story, but we did not immediately receive a response. Representatives from Rep. Flores’ office and SpaceX also did not immediately provide a comment.

Despite the apparent turf-based lobbying war, Coffman and his colleagues are not alone in their critique of how government agencies permit SpaceX to internally lead their own mishap investigations — and, by extension, other rocket companies like Orbital ATK and ULA. (Both have chosen to lead their own investigations in recent years.)

In fact, a June 2016 audit by NASA’s Office of Inspector General (OIG) argues that internally led probes don’t meet the bar for being independent.

Business House Republicans cite concerns over SpaceX explosion

A group of 10 Republican members of Congress wrote Thursday that they are increasingly concerned about SpaceX’s ability to safely fly NASA astronauts and national security satellites after the company recently suffered its second rocket explosion in just over a year.

In a letter to the Air Force, NASA and the Federal Aviation Administration, the group said SpaceX should not be leading the investigation into its most recent failure, and that authority should be turned over to the federal government “to ensure that proper investigative engineering rigor is applied.”

Last year, an unmanned Falcon 9 rocket exploded a couple minutes after it launched a resupply mission to the International Space Station, destroying $118 million worth of cargo. Then, earlier this month, another Falcon 9 rocket blew up as it was being fueled ahead of an engine test. A $195 million commercial satellite sitting on top of the rocket was lost in the fireball.

“These failures could have spelled disaster, even loss of life, had critical national security payloads or NASA crew been aboard those rockets,” wrote the members, many of whom represent states where SpaceX’s chief competitor, the United Launch Alliance, has a strong presence.

SpaceX declined to comment. After the Sept. 1 explosion, SpaceX founder Elon Musk said on Twitter that the Dragon capsule would have been able to abort in time, ferrying the astronauts on board to safety.

The company has said it is narrowing down the cause of the explosion, pinpointing a breach in a second-stage helium system. Earlier this week, Musk said the investigation was “vexing and difficult.” He stressed that finding out what went wrong is the company’s “absolute top priority” but said what actually caused the explosion was still unknown.

Can Elon Musk’s Mars Plans For SpaceX Prove To Be The Demise Of Tesla?

Earlier this month, a Falcon 9 rocket blew up and destroyed a Facebook satellite. This is not the first time that this happened. If Musk wants to send humans to Mars, he and his team at SpaceX must find a way to fix this issue.

News.com.au added that Elon Musk’s massive plan for SpaceX will definitely affect Tesla’s future. It was noted that, currently, the car manufacturer is already facing too many risks. It is losing so much money right now, money which it may not be able to get back in the future.

The publication reported that Musk has a lot of things going on right now. First, SpaceX has plans with NASA, aside from the Mars thing. Next, he recently took on SolarCity’s debt, which is costing him money. It is highly likely that these issues will take its toll on Tesla.

SpaceX is set to take on the wild, wild waste

Of course, skeptics say that SpaceX is trying to do too much, too fast. It’s a fair point in light of the recent accident at the Kennedy Space Center where an unmanned Falcon 9 blew up during routine pre-launch procedures. Others point out that this endeavor will cost anywhere from hundreds of billions to trillions of dollars. It’s far more than even Elon Musk, cofounder of Paypal and CEO of Tesla and Solar City, could possibly afford alone or raise collectively. These kinds of question have yet to be fully answered, although Musk does mention in the video that reusability and a strong public-private partnership will play a big role in dramatically lowering costs.

Other big questions are: where will the first assessment team land, how will they live, and what will they use for gas? Mars may look like the desert southwest in images returned by robotic explorers, with clear crisp lines of desert and dune against pink and blue skies, but it is not. The surface of Mars is instantly lethal to humans in a dozen different ways. The rarefied air is mostly carbon dioxide and nitrogen with no free oxygen at all. The surface is bombarded by radiation, even the soil is toxic by most standards, and these are just some of the hazards we know about.

What could wreck Elon Musk’s plan to colonize Mars isn’t science, technology, or money—it’s ethics

Musk’s dream to colonize Mars is not about science, though. It is an insurance policy. “History suggests there will be some doomsday event,” he said. “The alternative is to become a space-going civilization and a multi-planet species.” When your belief is that you’re saving humanity from annihilation, you may not care too much about a few alien microbes.

But Musk also admits that he can’t achieve the colossal task alone. “Ultimately, this is going to be a huge public-private partnership,” he said. Even if Musk doesn’t have ethical qualms, as a publicly funded body, NASA most certainly will.

Stop Elon From Failing Again

THE ONE STOP DATABASE ON STOPPING ELON MUSK

SpaceX