Elon Musk's Massive Scam Factory And Stock Market Fraud Schemes
Elon Musk has over a thousand men who manipulate is scams for him. These men work at Google, Goldman Sachs, Wells Fargo, Deloitte, Mossack Fonseca, Wilson Sonsini, Black Cube and other dirty providers. This dirty money team is paid to do, and hide, financial and political crimes!
More Oregon bribery charges in Elon Musk Solarcity energy scandal
A private consultant was indicted this week – the second time in 10 months – in connection with a widening corruption scandal that already has ensnared a onetime Oregon Department of Energy manager.
The 78-count indictment against Martin Shain includes allegations of bribery, racketeering, theft and tax evasion, and comes two days after the former agency manager, Joe Colello, pleaded guilty to accepting $291,017 in kickbacks.
Shain, 60, was both a consultant on energy projects and a tax credit broker. Prosecutors say the Seattle-based businessman sent cashier's checks to Colello on more than 50 occasions over a 2½-year period. In turn, Colello said he helped Shain arrange the sale of tax credits the agency issued to developers and owners of renewable energy and conservation projects.
The indictment was handed down by a Marion County grand jury on Wednesday but not made public until Thursday. It listed 29 witnesses, including state officials, tax credit recipients, project developers, accountants and others.
Shain is scheduled to be arraigned Friday morning in Marion County Circuit Court. His lawyer, Jim McDermott, said that, "Mr. Shain denies being part of any racketeering enterprise. Mr. Shain also denies bribing any government officials."
Shain was indicted last August on charges of forging documents to improperly obtain nearly $12 million in energy tax credits to support the construction of solar arrays at Oregon State University and the Oregon Institute of Technology.
State and federal law enforcement agencies launched investigations of the solar project after The Oregonian/OregonLive published a Feb. 27, 2015, report raising questions about the authenticity of the documents and Shain's involvement in gaining the tax credits.
Shain was a consultant on that project, hired by the state to help solicit proposals, select vendors, negotiate contracts, monitor construction and help secure the tax credits. He was paid some $2.4 million in fees, most of it by the project developer, SolarCity.
But Shain also became a player in the lucrative business of brokering tax credits, joining other firms and individuals in the gold rush that developed after the state supersized the long-running energy incentive program and issued hundreds of millions of dollars in tax credits. The business entailed helping tax credit recipients, including municipalities, state agencies, transit agencies and private companies, sell them for cash to deep-pocketed individuals and corporations looking to reduce their tax liabilities.
The state allowed the sales to help project backers raise upfront cash, and almost three-quarters of the nearly $1 billion in tax credits issued by the Energy Department were sold. For years, those sales were handled strictly by the agency, with Colello in charge of matching up buyers and sellers and verifying that the transactions took place at the state-mandated price.
That worked smoothly until 2010, when the market for tax credits plummeted during the Great Recession. The market also softened as the original sunset date of the program approached in 2012, and tax credits flooded the market. Many recipients found themselves sitting on credits that they had little expertise in marketing, or potentially worse, were set to expire.
In the end, third-party brokers virtually took over Colello's matchmaking role, with the agency's blessing. The brokers earned lucrative commissions in the process, sometimes 10 percent or more of the value of the tax credits they placed. Tax accountants and other service providers also got a piece of the action, charging clients a placement fee for hooking them up with the broker.
Shain was deeply familiar with the tax credit program and its byzantine rules. And he had developed a personal relationship with the most important contact in the agency – Colello -- who had access to both the list of credits coming on the market and the investors who had expressed an interest in purchasing them.
Colello told The Oregonian/OregonLive that his relationship with Shain evolved from professional to a personal friendship. The two regularly discussed business, and Shain talked of using him as a partner or consultant on deals, Colello said.
"We have a verbal agreement," Colello said. "At some point the money just started showing up."
Colello received cashier's checks on 52 separate occasions, usually in FedEx packages, he told The Oregonian/OregonLive. The payments ranged from $1,000 to $14,130, court documents show. Colello said he deposited them in a brokerage account and was playing the futures market with the proceeds, hoping to establish his own business over time.
Shain marketed himself throughout the state, and placed tax credits for the cities of Wilsonville and Canby; transit districts in Lane County, Salem, La Grande, and South Clackamas County; Mt. Hood Community College; the University of Portland, as well as for at least one private company.
One of the earliest transactions listed in court filings is the sale of tax credits for the city of Canby. Shain earned more than $50,000 in commissions on three tax credits that he sold for Canby Area Transit in the summer of 2012, according to emails and documents obtained by The Oregonian/OregonLive through a public records request.
In emails with Canby Transit Director Julie Wehling, Shain portrays himself as slogging hard to earn his money, flying to Southern California and Chicago to make sophisticated presentations to multiple investors, at least one of them a retailer with an Oregon presence and an appetite for tax relief.
It's not clear whether those trips really took place. All of Canby Transit's credits placed by Shain were sold to individuals in Oregon, some of them clients of an accounting firm with an office on Kruse Way in Lake Oswego.
Canby seemed pleased with the service.
"You will never know how much your work helping [Canby Area Transit] get pass-through partners has meant to CAT and me personally," Wehling wrote to Shain in September 2010, shortly after he'd sold the first two credits.
"I can't fully explain how wonderful that makes me feel," Shain responded. "To be able to help make a difference for a great community, which like most, is struggling to maintain services ... That's perfect. I'm not a young guy any more, and I tend to take projects I'm emotionally vested in. Canby is certainly one of those."
Wehling served as a reference for Shain with other clients.
Colello's managers at the Department of Energy apparently never picked up on his alleged side job with Shain. And audits by the Secretary of State and an outside forensic auditing firm hired specifically to identify fraud in the program didn't flag Colello or Shain, though it did say the program lacked adequate controls to pick up instances of fraud.
Shain's 2,700-square-foot waterfront home in Seattle is on the market for $1.6 million. He also appears to own another home in the city.
Shain's brokerage business, RC Shain & Associates, is registered to 85-year-old Roselle Shain of Seattle. Her signature is on contract documents with the City of Canby.
Her relationship to Martin Shain was not immediately clear, but his brother has already become entangled in the forgery case. Earlier this year, Phil Shain submitted an affidavit to the court claiming he forged the documents to save his brother's business, which was in danger if the solar project fell through.
A man who answered the phone listed in Roselle Shain's name said, "At the present time, Mrs. Shain has no comment to The Oregonian."
Summary. As has been widely reported, SolarCity reached a $29.5 million settlement last week with the U.S Department of Justice. In isolation, this may not be of major concern to investors. However, there are other investigations into SolarCity that are currently occurring along with many consumer complaints. When added together,...
SolarCity's new solar panel factory in Buffalo, New York, a 1.2 million square foot building, was part of a January 5, 2012, pledge by Cuomo for a $1 billion five-year economic development plan for the city. 1,460 direct factory jobs were promised.
In February 2014, SolarCity's stock price peaked at about $85 a share. Today, a share is less than $20. Crains reports that it posted a $251 million loss in Q1 2016 and a loss of $230 million in Q2. SolarCity is, according to the Buffalo News, facing
SolarCity's future is, as Crain's New York Business puts it: "uncertain." Amid the company's myriad problems are the facts that it has never been profitable, nor does it have manufacturing experience. In February 2014, SolarCity's stock price peaked at about $85 a share. Today, a share is less than $20.
Tesla-SolarCity hopes to use the completed facility as a one-stop shop to produce solar panels, battery chargers, and electric vehicles. The payments have been held up because of a cascade of corruption charges leveled against LPCiminelli, one of the contractors pegged to manage construction on the so-called Buffalo Billion's signature project.
ELON MUSK TORTURES ANIMALS FOR PROFIT WITH NETWORKING HELP FROM GOOGLE
Elon Musk's Neuralink Sought to Open an Animal Testing Facility in San Francisco. One of the startup's first endeavors, according to public records obtained by Gizmodo, was taking the necessary first steps to transform its San Francisco headquarters into an animal testing laboratory and machine shop.
Elon Musk’s rogue fleet of internet domestic spy satellites so big it’s blocking view of stars, astronomers moan
ELON Musk has been accused of blocking our view of the stars with his Starlink internet satellites. His satellites are designed to act like Google by offering attractive internet while everything that goes over them is spied on by Google and the Deep State
The billionaire's firm SpaceX has launched dozens of "broadband" probes into orbit – but has been slammed for filling the sky with "space junk".
SpaceX has already launched 122 satellites into space, to trial delivering internet to Earth from low orbit.
Now astronomers are snapping the satellites as bright trails of light in their observations of the night sky.
This week, Clarae Martínez-Vázquez, an astronomer at Cerro Tololo Inter-American Observatory in northern Chile, tweeted angrily about Musk's Starlink probes.
"Wow!! I am in shock!! The huge amount of Starlink satellites crossed our skies tonight," she said.
"Our DECam exposure was heavily affected by 19 of them. The train of Starlink satellites lasted for over 5 minutes.
The astronomer added: "Rather depressing...this is not cool!"
Back in June, the International Astronomical Union issued a statement complaining about the reflective Starlink satellites.
It argued that the probes could be "detrimental to the sensitive capabilities of large ground-based astronomical telescopes".
SpaceX wouldn't have to launch all 30,000 satellites, but filing for them now could stop other satellite operators going after the same slots.
The first 60 Starlink satellites were put into orbit in May and have already received criticism for being spotted in the night sky looking very bright and visible.
When spotted flying above the Netherlands, a Dutch UFO website was inundated with more than 150 reports from people thinking that they were looking at UFOs.
It is thought that the satellites appeared so bright at first because they had not had the chance to reach their intended orbit height of 340 miles above Earth.
Musk responded to concerns on Twitter and said that the satellites will be in darkness when the stars are visible so shouldn't disrupt the night sky.
The satellites are intended to be staggered at different heights above the Earth including altitudes of 340 miles and 710 miles.
The new satellite request asks for permission to have extra satellites at orbits ranging from 203 miles to 360 miles, which could boost the broadband service.
Starlink satellites have also sparked concern over increased space junk and even the European Space Agency is now worried about them disrupting its work.
Earlier this year, the space agency tweeted: "For the first time ever, ESA has performed a 'collision avoidance manoeuvre' to protect one of its satellites from colliding with a 'mega constellation'#SpaceTraffic".
There have also been concerns that humanity could be trapped on Earth by too much space junk in Earth's orbit.
That's according to one space scientist, who says Musk's plan could create an impenetrable wall of space junk around our planet.
A catastrophic clutter of space debris left behind by the satellites could potentially block rockets from leaving Earth, an effect known as "Kessler syndrome".
"The worst case is: You launch all your satellites, you go bankrupt, and they all stay there," European Space Agency scientist Dr Stijn Lemmens told Scientific American.
"Then you have thousands of new satellites without a plan of getting them out of there. And you would have a Kessler-type of syndrome."
What is Starlink?
Here's what you need to know about Elon Musk's satellites...
Starlink is a satellite project led by billionaire SpaceX CEO Elon Musk
Musk intends to put 12,000 satellites into the Earth's orbit so they can provide cheap WiFi to the whole world
SpaceX also intends to sell satellites for military, scientific and exploratory purposes
60 of the Starlink satellites have been sent up to Space so far
The satellites are being launched on top of unmanned Falcon 9 rockets
How they will affect the night sky is causing concern as they look brighter than expected
It will take at least 12 trips to take all of the satellites into Space and they will be staggered at different heights above the Earth
It will take thousands of years for any SpaceX satellites left in our orbit to descend to Earth and burn up in the atmosphere.
The firm says it's already taken steps to avoid cluttering up the region. It's launching the satellites into a lower orbital plane than most space tech to avoid collisions.
Even with such precautions, mega-constellations like Starlink will results in 67,000 potential collisions per year, another space scientist warned.
Musk isn't the only tech billionaire looking to colonise space with satellites.
Amazon boss Jeff Bezos also has similar ideas.
Musk has previously said he plans to send up nearly 12,000 satellites by the mid-2020s.
If everything goes to plan for SpaceX then internet users across the world could have 40 times faster internet speeds no matter where they live.
How much this service will cost has not yet been revealed but Musk intends to keep prices low.
Musk has been in business since 2002. His stated goal is nothing short of transforming humanity through his products: his electric cars, space travel, and an underground high-speed Hyperloop system.
He has yet to succeed at anything but somehow spins every failure into proof of imminent success. His only accomplishment has been this decades-long Jedi mind trick.
Tesla is best known for blowing deadlines and consistently falling short on production.
In November 2017, Bloomberg reported that the company burns through $500,000 per hour. For two years now, Tesla has been suffering an epic talent drain, and in May, two top execs — one the liaison with the National Transportation Safety Board — walked out the door.
That’s to say nothing of the human toll.
In March, a Tesla driver was killed while test-driving an autopiloted Model X, the impact decimating half the car. Then in May, the NTSB announced an investigation after two teenagers were killed in a Tesla Model S after its battery caught fire following a crash. A similar accident claimed a driver two months prior, with California firefighters reporting that the Tesla battery kept reigniting days after the smash.
California’s Division of Occupational Safety and Health opened its third investigation into workplace safety at Tesla Inc. in July after employee complaints. Two investigations have been ongoing since April, yet Musk took to Twitter to boast that Tesla was now building its cars in a tent.
“Not sure we actually need a building,” he tweeted. Meanwhile, he was “back to sleeping at the factory” to hit production deadlines.
This is a genius?
Tesla was founded in 2003, but the world’s largest automakers quickly surpassed Musk’s vision for electric vehicles. Tesla will never catch up. Shareholders are finally catching on.
Musk isn’t sorry and nothing is ever his fault
So should the government, which reportedly gifts Musk’s companies with an estimated $4.9 billion in subsidies.
Star investor Jim Chanos called Tesla a “walking insolvency” back in 2016. He doubled down in December, saying Tesla is “headed for a brick wall.”
SpaceX — which Musk touts as replacing NASA and colonizing Mars — has been a literal failure to launch. So many of its rockets have burned up or crashed that Musk, for reasons unknown, has made a blooper reel.
As for that Hyperloop, most experts say it’s impossible and unnecessary. “It gives me pause to think that otherwise intelligent people are buying into this kind of utopian vision,” Harvard professor Jose Gomez-Ibanez told MIT Technology Review in 2016.
“They’re up against the airlines, and airlines don’t need to install hundreds of miles of track.”
Rocket scientist and aerodynamic engineer Leon Vanstone has called the Hyperloop yet another Elon Musk hustle.
Writing in Fortune, Vanstone asked: “Is it possible to build a Hyperloop train into a 200-mile underground tunnel on a reasonable timeline that moves people in 29 minutes [from DC to New York] and isn’t prohibitively expensive? Probably not.”
Musk infamously does not take criticism well and refuses to be questioned or challenged — three lethal traits in a leader. On a conference call with analysts in May, Musk dismissed questions about Tesla’s diminishing capital and other dubious claims with name-calling.
“Excuse me,” Musk said. “Next. Boring boneheaded questions are not cool.”
Tesla’s stock plummeted 5.6 percent after that performance. They also dropped 5 percent after an April Fool’s Day tweet in which Musk announced Tesla had gone bankrupt.
“Elon plays by his own rules,” a former Tesla exec told the Washington Post, “but I think he underestimates the weight of his own words.”
Musk’s attempts to insert himself into the Thai cave rescue show he has less intelligence and even less humanity than we realized.
He finally apologized on Wednesday for his disgusting accusations against the hero diver, but only after shareholders demanded it and not without accusing the diver of lying, insisting his own efforts weren’t p.r.-driven but “an act of kindness.”
Oh — and that the sub he built was “to specifications from the dive-team leader.”
In other words: Musk isn’t sorry and nothing is ever his fault.
Business as usual.
Imagine if your insurance company knew about it immediately every time you drove faster than any speed limit, anywhere. That you failed to come to a complete dead stop at every stop sign before proceeding – regardless of the need to come to a complete dead stop.
Bethany McLean’s reputation proceeds her, with good reason. She’s mostly known for tackling the Enron scandal and the 2008 financial crisis – two of the biggest financial frauds over the last decade or now. She co-authored Enron: The Smartest Guys in the Room, which was later made into a movie.
And now, she’s setting her sights on Elon Musk and Solar City, something we expected was about to happen last week.
Elon just admitted something which is getting very little coverage – and no explanation.
He announced that Tesla will no longer be selling the “affordable” $35,000 Model 3 he promised would be Tesla’s first mass-market electric car. Like so many of Elon’s promises, that one’s out the window, too.
The price of the least expensive Tesla just rose to $39,000. Well, technically $38,990 – to make it go down easier.
The simple answer is . . . the press lets him. Over and over and over again. Ludicrous claims that ought to trigger the raising of hands – if not questions about his sanity – are stenographed onto laptops and formatted into copy and clicked and sent all over the Internet as imminent, given, factual.
There will be space tourism to Mars by 2022; fleets of electrified long-haul big-rigs that don’t have to stop every 20 miles or so for recharge pit stops. A new supercar that doesn’t exist – but send me a huge check.
Remember Yul Brynner in The Ten Commandments?
So let it be written, so let it be done. Except pharaoh kept his promises.
Elon Musk has just announced he’s going into the insurance business with Liberty Mutual – a partnership as natural as the getting-together over coffee of the Gambinos and Columbos.
They’re really going into the data-mining and mobility control business; the insurance business is merely the storefront.
The plan, according to Elon, is to offer “compelling” premiums . . . by compelling policyholders to let him (and the sickly-named Liberty) monitor their driving via real-time telemetry – just like the Apollo program.
Extortion is illegal provided you call it that. If you call it something else – “emissions credits,” for instance – then it’s ok.
Tesla just extorted several hundred million dollars from FiatChrysler (FCA) via this legal means of extortion. FCA is forced to pay Elon for not building enough electric cars which people don’t want to buy – but which don’t produce that deadly inert gas, carbon dioxide. While the cars FCA sells – without subsidies – do.
These CO2 “emissions” – which every living soul on this Earth also “emits” with every respiration – have been hystericized into a Planetary Threat for political reasons. An inert gas – but one essential to life on this Earth – has been rebranded into an “emission,” a term which once meant harmful byproducts – things which had to be cleaned up for the sake of public health.
When one of the best known pro-Teslablogs on the web says that the Model 3 has a substantial design flaw, it’s time to pay attention.
The “mass accessible” electric car, which became infamous for having its bumpers fall off, was found to have a design flaw in its underbody that causes the car to trap and retain dirt, water and sand from roadways, according to electrek, who this week published an article detailing the flaw.
The blog points out that Tesla has “often been accused of designing cars for the Californian climate” and that water, dirt and sand used to de-ice roads in colder climates are susceptible to getting trapped in the underbody of Model 3 cars.
It took a long time for the Catholic Church to concede there was a pederast priest problem. Publicly admitting the awful truth was regarded as a mortal threat to the Church itself – which it has been. People think twice now about leaving young Johnny in the care of Father McFeely.
When Chevy couldn’t sell the Volt electric car (RIP) it resorted to leasing them. Which at least gives the impression that people are buying them.
In fact, they were renting them – for well below what it would have cost to buy, which is precisely why leasing is attractive to those looking to drive more car than they could otherwise afford.
Or are willing to pay for.
GM offloaded Volts for just under $200 a month – before the proverbial plug was finally pulled. It doesn’t take green eyeshade to see the problem with a $200 monthly lease payment . . . when the car stickered for $33,520.
Three years is a long time to wait for a new car. It makes you want to buy another car – which is exactly what a large number of frustrated Teslians are doing as they lose hope of ever getting behind the wheel of the Model 3 they put thousand dollar deposits on as far back as 2016.
That is to say, of ever seeing the affordable Model 3 Elon promised to build for them. The one Elon promised he could sell them for $35,000. The one which – by dint of its affordability – Elon swore on a stack of battery packs would game-change the EV business, which has been financially flummoxed to date when it comes to figuring out how to build an electric car that can be sold at a price people can afford and at a profit.
Wired has published a stunning longform expose on what it has been like to work for Tesla over the last few years. The piece dives into life at the company’s Nevada Gigafactory and the seemingly abusive management style of CEO Elon Musk.
The piece opens with a story about an engineer at the company’s Nevada plant who “had been living out of a suitcase, putting in 13-hour days, seven days a week,” and who one day was excited to hear that Elon Musk himself needed his help on the production line. When the engineer was asked about one of the mechanized modules on the company‘s production line, instead of Elon seeking his assistance, he was berated and fired within a minute.
“Hey, buddy, this doesn’t work!” Musk shouted at the engineer, according to someone who heard the conversation. “Did you do this?”
“You mean, program the robot?” the engineer said. “Or design that tool?”
“Did you fucking do this?” Musk asked him.
“I’m not sure what you’re referring to?” the engineer replied apologetically.
“You’re a fucking idiot!” Musk shouted back. “Get the fuck out and don’t come back!”
Sep 25, 2019Today we chat about this Elon Musk and solar city situation. Shareholders believe that Elon Musk broke rules and laws as Tesla CEO around the acquisition of Solarcity. They believe the salacity ...
Tesla Shareholders: Are You Drunk On Elon Musk's Kool-Aid?
Elon Musk, CEO of SpaceX and Tesla, speaks during the International Space Station Research and... [+]
Tesla shareholders (and bullish Wall Street analysts) are either geniuses or delusional and I am betting on the latter. Typical of the lack of gray matter being applied to this investment is a recent post on Seeking Alpha, often a place where amateurs go to pump stocks they own.
Someone calling himself “Silicon Valley Insights” issued an ungrammatical “Strong Buy” recommendation on October 11 based on the following syllogism: (1) “Tesla CEO Elon Musk has stated very firmly that they can and will reach his goal of producing 5,000 cars per week by the end of this year.” (2) “Musk has a history of setting aggressive targets (more for his staff than investors) [Editors’s Note: That is a lie.] and then missing them on initial timing but reaching them later. [Editor’s Notes: That is another lie--Musk has NEVER reached a production target.] (3) “Reaching anything [sic] significant portion of that 5K target (say 1-2K) by the end of December could drive TSLA shares significantly higher.” This genius then suggests that investors stay focused on the Model 3 ramp as the key price driver over the coming weeks and months and argues that the announcement that only 260 Model 3s were produced in the third quarter leaves “much of the risk…now in the stock price.” He is correct--there is a great deal of risk embedded in a stock trading at infinity-times earnings with no prospect of profitability , a track record of breaking promises, a reluctance to sell equity to fund itself even at price levels above the targets of most analysts, and a market cap larger than rivals that are pouring tens of billions of dollars into putting it out of business.
Undeterred, he offers two investment strategies. The first he terms a “reasonable and conservative” one that waits to invest in TSLA shares until the early November third quarter earnings call. In my world, a reasonable and conservative strategy would be to run for the hills or short the stock (as I am doing). A “more aggressive and risky strategy” (compared to skydiving or bungee jumping) would be “to buy shares before that third quarter report and call on the bet that the Model 3 production update will be taken positively.”
No doubt investors like Mr. Silicon Valley Insights will put a positive spin on whatever fairy tales Elon Musk spins on that call, but that is a big bet indeed.
The question is why so many people like Silicon Valley Investor and analysts at some of Wall Street’s biggest firms are willing to believe him. Unsurprisingly, investors are acting out of blind faith and Wall Street out of greed. Neither motivation constitutes a viable investment strategy.
One day Musk says that the company has 500,000 deposits for the Model 3 (which is a Ponzi scheme because the funds are not escrowed) and the next day has to admit there are only 450,000 (and perhaps fewer since it is going to take years to produce those cars at the current production rate and people will get tired of waiting and ask for their money back). In any case, he refuses to update the current level of deposits or give monthly sales figures like the rest of the industry.
He has Tesla buy bankrupt affiliate Solar City and claims the company will be selling huge volumes of solar rooftops though few have materialized. He promises that Tesla will produce 200,000 vehicles in 2017 and will come nowhere close, 500,000 in 2018 and 1,000,000 in 2020, figures that are laughable before considering that the company loses money on every one of them so it may be better off not meeting these fanciful targets. And in order to divert attention from his lies, he makes ridiculous claims that Tesla can rebuild South Australia’s and Puerto Rico’s power grids and then uses these as excuses for further product delays. In any case, there is no discussion of who will pay for this or how TSLA will make any money on these projects.
If investors want to throw away their money on a serial prevaricator, that’s their business and I will happily take the other side of the trade and the profits bound to come with it. But the SEC is supposed to police securities fraud and Mr. Musk is laughing in its face by producing one lie after another with impunity. If he were a coal producer or a member of a politically unprotected class rather than a purveyor of green cars for rich people, the SEC would be investigating him for his incessant market manipulation. This is another example of the collapse of the rule of law in America and it is going to cost investors tens of billions of dollars. Short sellers again are performing a public service by calling attention to this travesty of a company and failure of the regulators to police a serious abuse of the system.
Seeking Alpha isn’t the only place where people are trying to pump up Tesla stock in the face of a steady flow of bad news. A couple of days after the Journal reported that TSLA’s production line is a shambles (and after Tesla issued a non-denial denial to its house publicity organ, CNBC), one of its loudest Wall Street supporters (who happens to work at one of its habitual underwriters), Morgan Stanley’s Adam Jonas issued a ridiculous report raising his price target from $317 per share to $379 per share based on the alleged strength of TSLA’s infrastructure to support electric vehicles and lowered the discount rate of his imaginary and unsupported estimates which themselves are simply linear.
The report made absolutely no mention of the production difficulties that limited production in the third quarter but was filled with lots of colorful diagrams about all of the charging stations and Model 3s that are going to mysteriously materialize and fill America’s roadways (by the way, how come we never hear about the environmental challenges involved in disposing of all the auto and other batteries that TSLA and other electric car makers are going to produce?). Mr. Jonas treats TSLA as the only automaker engaged in the production and sale of electric vehicles, ignoring the fact that the largest automakers in the world with much greater resources than TSLA are devoting billions of dollars to the sector. His work shows little sense of the realities of the severe competitive pressures that TSLA is already starting to experience and will only intensify in the coming years.
Mr. Jonas is the analyst who imagined that Tesla will create a ride-sharing business he calls Tesla Mobility that will revolutionize the auto industry despite the fact that there is no sign such a business will ever exist and then used the value of that imaginary business to pump up his target price on the stock. His financial model for TSLA, which includes $70 per share for Tesla Mobility, is rife with inconsistencies and unrealistic assumptions. For example, his model shows only modest increases in share counts (from 167 million shares today to 188 million in 2020 and 203 million in 2025) and declining interest expense, which assumes that the company will not need to raise much additional capital, a wholly unrealistic assumption. He only shows the company raising $2.5 billion in additional equity in 2018, which won’t be nearly enough to fund TSLA’s capital needs.
I believe the company will need at least $10 billion of additional capital and should move quickly to sell as much stock as it can before the stock price collapses (if Elon Musk is indeed the visionary that the media describes, his brilliance does not extend to corporate finance where he is missing the important lesson that you raise money when you can, not when you need to). Mr. Jonas’s accounting also shows non-GAAP earnings exceeding GAAP earnings in 2020 ($4.72 a share non-GAAP v. $3.79/share GAAP) while stock options are still being granted in size ($468 million in 2017 rising to $724 million in 2025 and $926 million in 2030). His model also assumes straight line growth with no recessions, no hiccups, no problems, and endless government subsidies over the next dozen years. Good luck with that.
I think what may have happened is that Elon Musk called Morgan Stanley, one of TSLA’s underwriters, and asked it to write a positive report after the negative news came out over the weekend about its production snafus. Wanting to stay in its client’s good graces, Morgan Stanley obliged. Mr. Jonas had to come up with something and concocted his report about the importance of TSLA’s charging stations and other infrastructure to support its future fleet, which is all well-and-good looked at in isolation but provides no basis for inflating an already inflated price target. Rather, it is a transparent attempt to support the stock price. As I’ve often said, Wall Street makes brothels look like churches when it comes to ethics.
Naturally, after dropping double digits on the Journal story that the assembly line is in disarray, the stock rallied back by double digits on publication of the Morgan Stanley report. So that leaves us having to decide whether TSLA shareholders are geniuses or delusional.
There are some highly respected investors betting on TSLA, but there were a lot of smart people heavily invested in Valeant Pharmaceuticals International (VRX) when I told people to short that stock when it was trading at nearly $200 a share because I knew it was based on foundation of lies. Even smart people can make big mistakes. You need to think for yourself and look at the facts when you study a company, not rely on who else is invested or what the media is saying. The negative facts surrounding TSLA far outweigh the positive fantasies being hammered together like the cars in its factories by Elon Musk and his media and Wall Street sycophants. Keep the car but sell the stock. Or, put another way, don’t be delusional
Musk's father is reported to have sex with Musk's sister and gotten her pregnant. Musk hung out with Jeffrey Epstein. Musk seems to be the pot calling the kettle black. Unsworth sued Musk in 2018 after the pair were locked in a heated back-and-forth for weeks. The altercation erupted after Unsworth criticized Musk’s efforts to send a submarine to help rescue the team from a cave in Thailand where they were trapped. In response, Musk called Unsworth a “pedo guy” on Twitter and a “child rapist” in an email to a BuzzFeed reporter.
In a court deposition released in September, Musk said he worried Unsworth might be “another Jeffrey Epstein.” The documents also showed Musk’s representatives spent tens of thousands of dollars on a private investigator to dig up details on Unsworth.
The Unsworth case is one of several legal actions faced by Tesla and its mercurial CEO in the last few years. The company is also fighting a lawsuit from shareholders upset over its acquisition of SolarCity in 2016, and recently settled a suit with Walmart after Tesla solar panels on several stores caught fire.
Elon Musk's SpaceX Starship rocket explodes during disastrous test
SPACEX HAS HAD THE MOST FAILURES AND ROCKET EXPLOSIONS OF ANY CONTRACTOR FOR NASA
SpaceX's failed test saw the top of the rocket blown off, sending plumes of gas into the air.
Tesla Recalls. Visit SaferCar.gov to report problems with your vehicle, non-original vehicle equipment, tires or car seats. Your complaint information will be entered in the National Highway Traffic Safety Administration's vehicle owner complaint database and used with other complaints to determine if there is a safety-related defect trend.
Sep 9, 2019September 9, 2019 — A Tesla Autopilot recall is necessary because "a vehicle that enables a driver to not pay attention, or fall asleep, while accelerating into a parked fire truck is defective ...
Tesla Model X safety issue prompts recall of thousands of vehicles. Tesla said it believes only around 3 percent of the 11,000 recalled vehicles have the problem, which prevents the seat from properly locking into place from a reclined position, leaving passengers vulnerable in the event of an accident. The global recall,...
Tesla launched a voluntary safety recall as a result. The Solution. The car company has directed dealers to replace the seat cables in affected models free of charge. Owners received notification via email Oct. 12.
Elon Musk and Azealia Banks set for court showdown
— Anti-Corruption News Story Curated by Anti-Corruption Digest International Risk & Compliance News
So 2019 has started with one of the most bizarre celebrity beefs you could wish to encounter. Billionaire entrepreneur Elon Musk looks set to lock horns with New York-born rapper Azealia Banks in a court of law, after she bore witness to an ill-fated prank he played on his Twitter followers.
American lawmakers have confirmed that Tesla’s legal team can subpoena Banks to give evidence. If they serve her with papers, the 212 singer will have no option but to give evidence to the trial.
It’s been reported by Dazed that Banks doesn’t have to turn up to court, but will definitely have to provide the plaintiffs with documents – such as written statements and her own social media posts – for consideration. However, this feud has been beyond unpredictable, and a face-off in the dock still remains a possibility.
What does Azealia Banks have to do with Elon Musk?
If ever a story needed context, it’s this: Banks happened to be working with Musk’s girlfriend – the musician “Grimes” – back in September last year. They were at the Tesla founder’s home when he sent out a joke Tweet about floating his company on the stock market for $420 a share – the number is a popular reference to weed culture. There is also a suggestion that a sex party, or illicit deeds were underway, that Banks photographed on her cell phone.
His sick jape sent shares sky-rocketing, only for them to plummet again. His little stunt is classed as a form of fraud, and he’s in seriously hot water at the moment. Meanwhile, after going public with her allegations that Musk was high at the time, Azealia Banks may now have a bigger role to play.
It’s long been suspected that the pair could end up facing each other in a courthouse, and it’s something Azealia Banks has forecasted herself. When she delivered the now-iconic “Apartheid Clyde” post in reference to the Pretoria-born Musk, she also predicted that her subpoena was in the mail.
Video: Tesla Drivers Wait Up to an Hour to Charge Electric Vehicles Because Of Tesla's Bad Technology
Footage shows drivers queued up back-to-back in lines stretching over a half mile long
Tesla owners in California waited in long lines to charge their electric vehicles over the holiday weekend.
Footage out of Kettleman City, the location of one of the largest supercharging sites boasting up to 40 chargers, shows drivers queued up back-to-back in a line about a half mile long.
Testy drivers attempting to juice up after Black Friday sounded off on social media, claiming the wait time was anywhere from thirty minutes to well over an hour.
@Tesla biggest supercharger at Kettleman city, Ca, around 40 chargers but the line is 30 min. Long. Almost every supercharger from LA to SFO is backlogged. Tesla super charging network has not kept up. Spent more time charging than driving. No more long trips on Tesla. pic.twitter.com/hTQKNgikaC
Another Tesla owner claimed he ran into long lines at a charging station in Buellton.
Ran into same at Buellton and SLO SCs which are "edge" chargers due to the long distance between next stops. Not the worst, but the software could certainly do a better job warning about expected charging delays. pic.twitter.com/79BMuM0okC
The same scene played out at a charging station in San Luis Obispo, where a line of about 20 cars waited to charge, while a mobile supercharging station reportedly stood idly by.
Update on the Tesla supercharger at the Madonna Inn. The mobile supercharger was there but did not appear to be charging any vehicles. There were about 20 cars waiting to charge. $tsla$tslaqpic.twitter.com/FCMoTEAIuu
(Bloomberg) -- Elon Musk is known to mouth off -- and get in trouble as a result.
His ability to keep his emotions, and words, in check will be put to a test this week when -- barring a last-minute settlement -- he’s set to take the witness stand in a high-profile defamation trial.
The chief executive officer of Tesla Inc. and Space Exploration Technologies Corp. will have to go before a federal jury in Los Angeles and defend calling a British caver a “pedo guy.”
The civil trial is sure to be a spectacle. It’s the first time in his career that Musk will be called as a witness even though he is no stranger to litigation. In 2018, a U.S. Securities and Exchange Commission lawsuit led to Musk stepping down as Tesla’s chairman for three years. Earlier this year, Musk was deposed for several hours as part of an ongoing shareholder lawsuit regarding Tesla’s 2016 acquisition of SolarCity.
But the defamation case largely centers on Musk’s ego. In 2018, as the world was riveted by the plight of a Thai youth soccer team trapped in a flooded cave, Musk and engineers at his companies prepared a mini submarine, built with rocket parts, to help with the rescue efforts. The kids were ultimately saved without the sub.
The high-profile effort from the celebrity CEO drew derision from Vernon Unsworth, a British caver who helped in the rescue effort. He told CNN that Musk could “stick his submarine where it hurts” and that it had no chance of working.
Musk responded on Twitter -- as he often does. He referred to Unsworth as a “pedo guy.” Later, he asked why Unsworth hadn’t sued him. Unsworth obliged and filed a lawsuit in September 2018. Musk deleted the tweet before the suit was filed.
“It’s another PR land mine that Elon Musk has to navigate,” said analyst Gene Munster, a managing partner at venture capital firm Loup Ventures and a Tesla bull. “Good news is he has practice.”
Unsworth is represented by L. Lin Wood, an Atlanta attorney best known for representing Richard Jewell, the security guard falsely accused of being connected to the Centennial Olympic Park bombing during the 1996 Summer Olympics. [A Clint Eastwood-directed film about Richard Jewell opens next week]. Wood himself is also on Twitter, telling followers recently that Unsworth wouldn’t settle.
“Elon Musk described Vernon Unsworth as a pedophile,” Wood said in a phone interview Monday. “No reasonable person is going to disagree with that fact.”
Musk’s legal team is led by Alex Spiro, a former prosecutor based in New York who has represented rapper Jay-Z, New England Patriots owner Robert Kraft and several NBA players, including ex-Knick Charles Oakley. Spiro didn’t respond to a request for comment, with a spokesman saying the lawyer was “incommunicado.”
But in documents filed on Monday, Musk’s lawyers previewed their arguments, saying Unsworth asked for it.
“Mr. Unsworth invited or otherwise induced Mr. Musk’s allegedly defamatory tweets by airing a baseless accusation on an international CNN news broadcast accusing Mr. Musk of engaging in a PR stunt, alleging that Mr. Musk did not care about the lives of the trapped Thai children, and telling Mr. Musk to stick his submarine where it hurts,” the lawyers wrote.
“Mr. Unsworth’s criticism and insult invited a response from Mr. Musk,” they said.
Though it’s unusual for high-profile defamation cases to go to trial, Musk isn’t a typical defendant.
When cases don’t settle before trial, it usually means that the parties are too far apart on the amount of money that would make the case go away, or there’s a lot of emotion involved, said Sean Andrade, a litigator with Andrade Gonzalez LLP in Los Angeles, who isn’t involved in the Musk trial.
Unsworth may have a better than 50-50 chance of winning since there are tweets to show what Musk said, according to Andrade. But it may be harder to prove actual damages because Unsworth became more of a celebrity after the tweets, he said.
“He’s a little more favored to win, but the question is win what?” said Andrade.
The case won’t affect Tesla’s electric cars or SpaceX’s rocket launch business. But the public testimony will provide a window into Musk’s state of mind and how he runs his companies.
Musk’s witness list includes David Arnold, a former communications director at Tesla; Jared Birchall, who works for Musk’s family office; and Steve Davis, the president of Boring Co., Musk’s tunneling startup.
With an unlimited amount of money to be spent in Washington, the unabashed political opportunist can acquire fantastic wealth at the expense of our country and the American people.
Easy money in government – that’s what creates a world in which Hunter Biden can be paid $50,000 a month for providing no marketable services to a Ukraine natural gas company.
And that policy of endless money – produced on the Federal Reserve printing press and which has enriched both the Clintons and the Obamas – can be directly traced to the United States going off the gold standard in 1971.
The government has always picked winners and losers
Prior to that year and the Great Society programs of the 1960s, government operations were in some way tethered obliquely to reality. For example, Abraham Lincoln approved a temporary income tax in 1861 to fund the North fighting the Civil War. United States Liberty bonds were sold to send our boys “Over There,” to Europe to fight in the last days of World War I. And even the wildly out of whack New Deal of Democrat Franklin Delano Roosevelt created work programs to get Americans off the dole, before World War II brought the United States back to full employment also funded by federal debt.
The government has always picked winners and losers since the founding of the Republic and even before that during he Colonial period. Some governmental body had to choose who would send the first steam ships up the Hudson River to Albany, or lay the first train tracks across Long Island so that New Yorkers could then easily take a boat to Boston. That was New York State. But that was real work, with a real need, with real paying jobs, with real societal benefit.
Of course, there was and will always be nepotism, where some slob politician will give his slob brother or slob cousin an easy job in the finance office or parks department. That’s the usual low level corruption, which is a fact of life in nearly every business endeavor: it pays to know somebody, preferably the president of the company or the mayor of the your city or town.
The “impeachment inquiry,” which is really a political campaign disguised as a coup
The “impeachment inquiry,” which is really a political campaign disguised as a coup, reveals the dirty little secret hiding in plain sight: there is a ton of money to be made in government. And all you need is the chutzpah, the gall, to go for it, as the Clintons, the Obamas, and the Bidens have done.
Prior to these three families, no politician would ever commit legalized corruption of such magnitude to aggrandize themselves on such a magnificent international platform. It is worth noting that many successful politicians, the Roosevelts, Teddy and FDR, both, or John F. Kennedy did not need the money having already had it prior to seeking office. But until 1971, nobody, not anybody, no regular person when they achieved high office got rich being a politician. They may have benefited by getting elected by a machine, and there was graft and patronage, but nobody became a multi-millionaire. The standard of good conduct was set by Democrat Harry S. Truman, who specifically stated that anybody who left office rich was a crook. So sincere was Truman in this view that he had to return to Congress when Eisenhower was president and beg for a pension, which a grateful country gladly gave the haberdasher of Independence, Missouri, and military veteran.
But that all ended with the Clintons, who immediately following Bill’s presidency began efforts to aggrandize themselves by starting the Clinton Global Foundation to sell influence to grateful buyers from around the world. Having left office broke, Bill and Hillary began to cash in, making speeches, writing books, and selling their access to the Deep State to foreign potentates. No president or senator would have ever thought of doing this on a massive scale before them, because frankly there was no real money in it, and politicians knew they had to return to their towns and hamlets and shop at the grocery store and see people who knew them and would be ashamed to think that they had done such a crappy thing to the country that everybody loved. So it didn’t happen. In fact, President Clinton was the last president to balance the federal budget, so even he didn’t abuse the federal purse for personal gain.
Without any sort of fiscal restraint such as a gold standard, or term limits for congresspeople, or a balanced-budget amendment
But that changed with the Obamas, Barack and Michelle. President Obama determined how to leverage his fame as the first non-white president of the United States and by trying to transform the nature of the United States as it had been known for almost 250 years. In 2007, the Obamas had a net worth of $1 million, but now are reportedly worth $135 million.
Included in his attempt in transformation was the neat little way in which President Obama passed the “Stimulus” legislation that opened up the federal spending spigot. Next he approved money for “Green Energy” projects that involved government grants to shadowy companies, which in turn would give campaign contributions to Obama and Obama-backed candidates who would win elections and give out more money to these companies, many that went broke, in a completely legal cycle of money-laundering. After leaving office, the Obamas won a $60 million deal from Netflix to produce “content” of some kind despite having no experience in this area. According to Wikipedia, they received a $65 million book deal from Random House, which is owned by Pearson Publishing, which would benefit from the Common Core education initiative promulgated during the Obama presidency. The result of all this is that the Obamas own a multi-million-dollar home on the water in Martha’s Vineyard, despite railing against Climate Change and income inequality. They are not alone; the endless pipeline of government money funds public colleges and public sector unions that willingly pay for government speakers and advisers to capture more money.
What is happening now is that the nation’s debt to GDP ratio is exploding to unsustainable levels and is reaching a threshold that in other countries indicates a failed state, such as in Greece or Italy with tremendous political instability. Without any sort of fiscal restraint such as a gold standard, or term limits for congresspeople, or a balanced-budget amendment, there literally is an unlimited amount of money that can be spent on anything and which includes Hunter Biden leveraging his last name and the fact that he was the son of the vice president of the United States to do “deals” in Ukraine and China.
There is a ton of money to throw around in Ukraine and elsewhere which eventually hit Hunter Biden’s check book
That in itself is not a crime, but according to Wikipedia, even Obama administration officials expressed concern about these activities while Joe Biden was vice president and the leading Obama administration point person on Ukraine. These are matters that Joe Biden certainly will have to explain should he win the Democratic Party presidential nomination in 2020. How did this all happen under Joe
Biden’s watch? Because of the huge foreign aid to Ukraine that is made possible by a federal government that does not have to worry about money connected to some thing of worth such as gold. There is a ton of money to throw around in Ukraine and elsewhere which eventually hit Hunter Biden’s check book.
In October 2019, Hunter Biden resigned from the board of directors of a partnership that had received at least $4 million from the Chinese Communist government, although other sources have estimated a much higher amount. What is especially clear, though, none of Hunter Biden’s activities would have been exposed to such a broad audience had not President Trump rightly questioned these activities to the Ukraine president in September 2019, and also to China.
Without limits on the money supply nor a federal government with limits to its authority, you have a toxic opening for unprecedented wealth that never would have existed in prior American generations. It couldn’t exist due to a gold standard for money or you had individuals who had some sort of the fear of being shamed for doing such a heinous thing to their country. But now the Clintons and the Obamas are set, insulated among the super rich, and only time will tell if the Bidens will get theirs as well. One thing is clear though, with an unlimited amount of money to be spent in Washington, the unabashed political opportunist can acquire fantastic wealth at the expense of our country and the American people.