Tuesday, November 30News That Matters

Tag: Tesla Motors Inc

Volkswagen C.E.O. Herbert Diess Sets Sights on Beating Tesla

Volkswagen C.E.O. Herbert Diess Sets Sights on Beating Tesla

Business
WOLFSBURG, Germany — In July, when Herbert Diess, Volkswagen’s chief executive, wanted to congratulate the company for a strong first half of the year, he posted a video of himself zipping across a waterway at the company’s headquarters in Wolfsburg on an electric hydrofoil, delivering a message of thanks to VW’s roughly 200,000 workers.“I look forward to seeing you again after the vacation,” he said, cutting lazy doughnuts in the water, “and continue working together on the success of VW.”At a time when Volkswagen is still trying to regain trust lost in the emissions scandal of 2015 and fend off the growing threat of Tesla, the message was clear: This was not a 62-year-old engineer atop a hidebound business founded in the 1930s, but a dynamic mover and a shaker, ready to lead a revived co...

Global Rivalries Are Miring the Clean Energy Revolution

Technology
KISANFU, Democratic Republic of Congo — Just up a red dirt road, across an expanse of tall, dew-soaked weeds, bulldozers are hollowing out a yawning new canyon that is central to the world’s urgent race against global warming.For more than a decade, the vast expanse of untouched land was controlled by an American company. Now a Chinese mining conglomerate has bought it, and is racing to retrieve its buried treasure: millions of tons of cobalt.At 73, Kyahile Mangi has lived here long enough to predict the path ahead. Once the blasting starts, the walls of mud-brick homes will crack. Chemicals will seep into the river where women do laundry and dishes while worrying about hippo attacks. Soon a manager from the mine will announce that everyone needs to be relocated.“We know our ground is rich...
Lucid and Rivian Are Soaring on an Electric Vehicle Boom

Lucid and Rivian Are Soaring on an Electric Vehicle Boom

Business
Racing aheadPresident Biden visited a General Motors factory in Detroit yesterday that will start producing electric cars next year. He gave a speech to highlight how his recently signed $1.1 trillion infrastructure bill will accelerate America’s transition to electric vehicles, or E.V.s.The stocks of E.V. companies have already risen to shockingly high levels. And some have yet to make any cars, let alone profits. The push by policymakers to encourage E.V. sales has helped the sector, as has climate consciousness among some car buyers. But the mania also reflects the general bullishness that has swept up many assets, which can be hard to link to traditional financial fundamentals.The run up in share prices illustrates investors’ enthusiasm, The Times’s Niraj Chokshi and Jack Ewing report....

He Helped Build Tesla. Now He Hopes to Do the Same at Lucid.

Technology
But mass producing automobiles is a challenge of a different magnitude. Initial versions of the Air cost almost $35,000 more than a top-of-the-line Tesla Model S Plaid. To be profitable, Lucid must appeal to more than just a superwealthy elite.“Lucid’s biggest risks are getting to scale and capacity,” said Daniel Ives, a senior analyst at Wedbush Securities who follows the electric car industry. “The first phase has been significantly successful. Now it’s about the next level of adoption.”Lucid plans to offer a version of the Air next year that will cost $70,000 after a federal tax credit, and produce 500,000 cars a year by 2030, with a lineup that will include a sport utility vehicle and a pickup. The company had burned through $4.2 billion by June, and its prospectus noted that it might ...

JPMorgan says Tesla owes it $162 million because of an Elon Musk tweet.

Technology
Elon Musk’s Twitter post about taking Tesla private is still dogging him, more than three years later.On Monday, JPMorgan Chase sued Tesla in federal court, seeking $162 million that the bank says the electric automaker owes it under a stock options contract the companies signed in 2014. At the heart of the dispute is a provision in the contract that allows JPMorgan to tweak its details after any “extraordinary events” at Tesla.The bank is claiming that an Aug. 7, 2018, tweet — in which Mr. Musk, Tesla’s chief executive, said he had “funding secured” to take Tesla private at $420 a share — filled the bill because it significantly lowered Tesla’s share price. Tesla’s leaders disagree.JPMorgan’s lawsuit says Tesla sold JPMorgan stock warrants in 2014 “as part of a larger capital markets tran...
Elon Musk Sells $5 Billion in Tesla Stock

Elon Musk Sells $5 Billion in Tesla Stock

Technology
Elon Musk, the chief executive of Tesla, disclosed on Wednesday that he had sold about $5 billion worth of Tesla shares, in part to cover his tax obligations after exercising options on a large tranche of stock.Mr. Musk sold about 4.5 million shares between Monday and Wednesday, according to filings with the Securities and Exchange Commission. Tesla’s stock closed trading on Wednesday at $1,067.95, which would value the shares at about $4.8 billion, but some were sold for slightly higher prices.In the filings, Mr. Musk said he had sold about a million of the shares “solely” to cover taxes on 2,154,572 in stock he picked up at $6.24 each. Those shares he acquired, for a total of $13.4 million, were instantly worth about $2.3 billion. Later Wednesday, he disclosed the sale of an additional 3...

Tesla Shares Drop Another 12%, Have Shed $200B in Value Since Musk’s Tweet

Technology
Shares of Tesla fell sharply for a second consecutive day, dropping 12 percent Tuesday, in a continuing shakeout after Elon Musk, the company’s founder, suggested on Twitter that he would sell 10 percent of his stake in Tesla.Tuesday’s losses put the stock down more than 16 percent this week, nearly erasing the series of gains it had seen in the two weeks after Tesla’s market value exceeded $1 trillion for the first time. Since Friday’s close, Tesla has shed about $200 billion in market valuation, though it remained just above the $1 trillion threshold as of the close of trading on Tuesday.On Saturday, Mr. Musk posted a poll to Twitter asking if he should sell some of his Tesla shares, saying that he would “abide by the results of this poll, whichever way it goes.” About 58 percent of resp...

Behind Elon Musk’s Twitter Poll Is a Tax Bill Coming Due

Technology
Elon Musk may have already been compelled to sell a sizable portion of his Tesla shares even if he hadn’t issued an unusual Twitter pledge over the weekend.Mr. Musk on Saturday polled Twitter users as to whether he should sell 10 percent of his stake in his company. The poll appeared to be a response to a Democratic proposal to tax the unrealized gains of billionaires. “Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock,” he tweeted. Mr. Musk said he was raising the question because he does not take a cash salary as Tesla’s chief executive, and therefore wouldn’t have any way to pay a large tax bill without selling some of his Tesla shares, which make up the vast majority of his wealth.Mr. Musk wrote in a follow-up tweet that ...
Tesla Crosses $1 Trillion Value After Hertz Deal

Tesla Crosses $1 Trillion Value After Hertz Deal

Business
Hertz said on Monday that it would convert more than 20 percent of its rental fleet to Tesla’s electric cars by the end of next year, an announcement that helped propel Tesla’s stock value beyond $1 trillion for the first time.The order for 100,000 Teslas was a bold move for Hertz, which is just emerging from bankruptcy, and a sign of growing momentum in the shift to electric vehicles.And it was the latest fuel for Tesla’s skyrocketing share price, which gained nearly 13 percent to finish the day at $1,024.86, its first close above $1,000.“Wild $T1mes!” Elon Musk, Tesla’s chief executive, exclaimed on Twitter.In announcing its order from Tesla on Monday morning, Hertz declined to comment on the value of the deal. Bloomberg said the order would generate about $4.2 billion of revenue for Tes...
Tesla Under Scrutiny Over Lack of Recall After Autopilot Update

Tesla Under Scrutiny Over Lack of Recall After Autopilot Update

Technology
The top federal auto safety regulator sent two letters to Tesla this week raising questions about the company’s driver-assistance software systems and instructing the carmaker to provide fuller information.The regulator, the National Highway Traffic Safety Administration, is looking into why Tesla did not issue a recall last month when it updated software called Autopilot to improve its ability to spot stopped emergency vehicles such as police cars and fire trucks.The agency also ordered Tesla to provide data about the software that the company calls Full Self-Driving and expressed concern that Tesla may be preventing customers from sharing safety information with the agency.The moves suggest that NHTSA is taking a closer look at Tesla’s driver-assistance features and the gap between their...