Tesla Will Suffer A Further Blow In Europe Due To Standardization Of EV Charging Stations

Sales got off to a good start for Tesla (NASDAQ:TSLA) in Europe once the Model S made it on the market. Norway in particular, where government EV incentives are high and so are wages, became one of Tesla’s main markets in the early years. This should not come as a surprise given that Norway is emerging as an EV sales leader, given very generous government subsidies.

Source: New York Times

It has been reported by EV Obsession that Norway EV sales have now reached 30% of the total car market. Between the roughly $18,000 subsidy the government provides and the fact that Norwegians have an average net monthly salary of about $3,900, which is among the highest in the world, it should come as no surprise that EVs are doing alright in Norway. Unfortunately for Tesla, it seems to be falling behind in terms of market share in Norway. In 2013, Tesla managed to capture 25.2% of the market. This year, it seems that as of July, it only had 5% of the Norwegian EV market share. The early success of Tesla in Norway gave reason to many people to extrapolate a similar rate of success on other markets in Europe. The deterioration of Tesla’s market share in Norway should give people reason for pause. This is especially so, given that some of the stiffer competition in the EV market in Europe and across the world has not yet begun.

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Tesla’s Model 3 Base Price Will Be $15,000 Higher Than Musk Claims

Having seen one too many lazy recent media reports touting the upcoming “$35,000” Tesla (NASDAQ:TSLA) Model 3, I decided to update my article from nearly two years ago with some fresh numbers explaining why TSLA will never be willing to sell it in volume at anywhere close to that price. Here’s the math…

Tesla’s Q3 2016 automotive revenue (excluding leased cars) was $1,917,442,000 less $139,000,000 in ZEV credit sales = $1,778,442,000. That revenue came from 16,790 non-leased cars (see. p.28 of the 10-Q), which means the average car sold for $105,923. Cost of automotive sales was $1,355,102,000, which means gross profit (excluding ZEV) was $1,778,442,000 minus $1,355,102,000 = $423,340,000, which means gross profit per car averaged $423,340,000 divided by 16,790 cars sold = $25,213. Thus, Tesla’s cost to build its average car was the $105,923 in average revenue minus $25,213 in average gross profit = $80,710.

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Tesla, SpaceX, SolarCity, and the Cancer of Cronyism (Plus Post-Election Humor)

The vision is appealing, but in the short run it looks challenging. Tesla may have surprised investors by turning a narrow — and rare — profit in the third quarter, but the vast bulk of its current $28 billion market capitalization is predicated on Mr. Musk’s turning the company from a niche supplier into a truly mass manufacturer of electric vehicles. Tesla’s shares have fallen about 16 percent since the company unveiled its SolarCity bid in June, reducing the value of the all-stock deal to around $2 billion.

Hitting a self-imposed target of cranking out 500,000 cars per year by 2018, from a current run rate of around 100,000, already looked daunting. Tesla, after all, has a history of missing production and sales targets; its Model X S.U.V., for example, was delayed by problems with its falcon-wing doors.

Now Mr. Musk and his team also have a major acquisition to worry about. Throw in his continued role as chief executive of the rocket venture SpaceX, and he has a lot up in the air. Moreover, to deliver on its promises, Tesla will probably need to ask investors for fresh capital at some point next year.

For most chief executives, all this would make 2017 a make-or-break year. But Tesla investors’ overwhelming support of the SolarCity deal suggests that Mr. Musk is in a different category. Even if the wheels start to come off, he will probably be able to persuade the faithful to keep him in place and to hand over more cash. That may make Mr. Musk’s all-electric vision a self-fulfilling prophecy, no matter the cost.

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Donald Trump and Subsidies: New Wrinkle for Elon Musk’s Tesla-SolarCity Plans

Analysts expect the company to post another net loss for this year. The company posted a third-quarter net loss of $225 million, 4% less from a year earlier and less than analysts had expected. However, it also cut its forecast for the volume of panels it expects to install this year to the equivalent of 900 megawatts from 1,250 megawatts earlier this year.

Shareholders will decide the merger’s outcome in a meeting at 1 p.m. Pacific Time or 4 p.m. Eastern on Thursday in Fremont, Calif.

Cowen & Co.’s Mr. Osborne expects Tesla and SolarCity shareholders to approve the deal.

Two shareholder proxy services have differing opinions about the proposed merger. Institutional Shareholder Services Inc. endorsed it earlier this month, saying it was needed to create an integrated sustainable energy company. But rival firm Glass Lewis & Co., urged shareholders to vote no, calling it a “thinly veiled bailout” for SolarCity. Mr. Musk is the chairman and largest shareholder of both companies.

Shares of Tesla closed Wednesday at $183.93, off 23% this year. SolarCity shares closed at $19.83, down 61% this year.

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Elon Musk Faces Epic Juggling Act After Tesla-SolarCity Deal

The vision is appealing, but in the short run it looks challenging. Tesla may have surprised investors by turning a narrow — and rare — profit in the third quarter, but the vast bulk of its current $28 billion market capitalization is predicated on Mr. Musk’s turning the company from a niche supplier into a truly mass manufacturer of electric vehicles. Tesla’s shares have fallen about 16 percent since the company unveiled its SolarCity bid in June, reducing the value of the all-stock deal to around $2 billion.

Hitting a self-imposed target of cranking out 500,000 cars per year by 2018, from a current run rate of around 100,000, already looked daunting. Tesla, after all, has a history of missing production and sales targets; its Model X S.U.V., for example, was delayed by problems with its falcon-wing doors.

Now Mr. Musk and his team also have a major acquisition to worry about. Throw in his continued role as chief executive of the rocket venture SpaceX, and he has a lot up in the air. Moreover, to deliver on its promises, Tesla will probably need to ask investors for fresh capital at some point next year.

For most chief executives, all this would make 2017 a make-or-break year. But Tesla investors’ overwhelming support of the SolarCity deal suggests that Mr. Musk is in a different category. Even if the wheels start to come off, he will probably be able to persuade the faithful to keep him in place and to hand over more cash. That may make Mr. Musk’s all-electric vision a self-fulfilling prophecy, no matter the cost.

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It’s Time to Stop Spending Taxpayer Dollars on Elon Musk and Cronyism

From Enron to Bernie Madoff, at the end of every great American financial scandal, the totality of the perpetrators’ greed seems to be matched only by the public’s incredulity at how such a thing could be allowed to happen.

And thanks to Elon Musk, there’s a good chance we may all be asking this question again soon.

The Senate Finance Committee and the House Ways and Means Committee have launched a probe into tax incentives paid to solar companies, according to The Wall Street Journal. The committee probes, led by their respective Republican chairmen, Rep. Kevin Brady of Texas and Sen. Orrin Hatch of Utah, have found an appropriate and disturbing target to begin this work.

SolarCity, a solar installation company set to be purchased by Tesla Motors Inc., is one of the seven companies named in the initial investigation.

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Tesla is officially in the solar roof business, says Elon Musk

It’s final: With no more barriers to the deal, Tesla is buying SolarCity. Tesla shareholders backed the acquisition, with an overwhelming 85 percent giving their approval, Tesla announced on the company’s blog. CEO Elon Musk and other ‘affiliated’ shareholders did not vote.

Tesla General Counsel Todd Maron announced the approval shortly after a special shareholders meeting, held for the purpose of voting on the merger, began, according to Electrek. SolarCity’s operations and staff will merge with Tesla and the SolarCity brand will become “Tesla Energy.”

“We would like to thank our shareholders for continuing to support our vision for the future. We look forward to showing the world what Tesla and SolarCity can achieve together,” Tesla wrote on the company blog.

The acquisition will cost Tesla approximately $2 billion. Once the SEC filing is complete Tesla will publish the final results of the vote, describing the affirmative votes as “overwhelming” and “more than 85 percent of shares.”

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