Tesla just months from total collapse, says hedge fund manager

Another Tesla demonstrates the makes built in barbecue feature neds some work (picture source: Zero Hedge
Another Tesla demonstrates the makes built in barbecue feature neds some work (picture source: Zero Hedge

The American electric-car company Tesla will be bankrupt within four months unless its CEO Elon Musk “pulls a rabbit out of his hat,” according to hedge fund manager John Thompson. “Companies eventually have to make a profit, and I don’t ever see that happening here, this is one of the worst income statements I’ve ever seen and between the story and the financials; the financials will win out in this case.” the head of Vilas Capital Management told Market Watch.”

Thompson manages $25 million and his Tesla short is the fund’s biggest position. He has been betting big against the electric automaker for years.

Last April, Tesla stock hit a record high of around $300 and continued to grow to $389.61. Nevertheless, Thompson’s fund still managed to churn out a 65-percent gain for the year. Since then, Tesla has fallen sharply and Thompson is confident his bet is about to pay off. Tesla shares were down more than 8 percent at Wednesday closing to $279.18. The hedge fund manager said that if his prediction comes true, his fund could surge by another 50 percent. He noted that he is investing $500,000 of his own money.

“Tesla, without any doubt, is on the verge of bankruptcy,” Thompson told clients in an email. He explained that funding will be hard to come by in the face of problems in delivering the Model 3, declining demand for the Model S and X, extreme over – valuation on the stock market, and a likely downgrade of its credit rating by Moody’s from B- to CCC.

Another fatal crash earlier this month that left a Tesla Model X smouldering on the shoulder of the southbound lane of Highway 101 in Mountain View has hammered Tesla shares to their lowest level in a year while pushing the yield on its debt above 7% (though an ill-timed downgrade from credit rating agencies also had something to do with that).

Once again, Tesla finds itself under scrutiny from the U.S. National Transportation Safety Board. The last brush with the regulator ended without incident – the agency ruled that a fatal Florida crash was the result of driver error, and that Tesla’s controversial autopilot software (which has been implicated in several fatal accidents) was not at fault, though this verdict should be treated with some scepticism as it is based on the fact that the car was on autopilot, which is not a technology sold as offering full vehicle autonomy. It seems odd therefore that a judge can say the driver was at fault when in fact the car should have a failsafe mechanism to prevent stupid drivers from abusing what is intended to be an electronic assistant.

As two teams from the NTSB sift through the evidence gathered from the site of the latest demonstration of Tesla’s self – immolating feature, the company said in a blog post published Tuesday night that it hasn’t been able to analyze any of the data collected from the scene – and therefore doesn’t yet know what caused the crash – because the car was so badly damaged, as Bloomberg reported.

The company hasn’t been able to retrieve the vehicle’s logs and is working with authorities to access them. Tesla hasn’t disclosed whether the driver had engaged Tesla’s partially autonomous driving system, known as Autopilot, when the crash occurred.

Interest in the effectiveness of self-driving technologies is at crisis thanks to a deadly Uber Technologies Inc. accident that happened days earlier involving an autonomous car and a woman who was crossing the street with her bicycle.

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First Porsche? Steady On Boys, Its Not A Carrera

The first Porsche vehicle ever built was recently rediscovered in an old barn in Austria. What’s even more amazing is that the car had been sitting there since being abandoned in 1902. Perhaps it was dumped because it was an electric car. Even back they they knew the turd-on-wheels Toyota Prius was not the future of motoring. Take a look:


Now this piece of automotive history is getting some recognition. It is currently on display in Stuttgart, where it was unveiled on Mon., January 27, 2014.

Yahoo News reports “The ‘Egger-Lohner electric vehicle, C.2 Phaeton model,’ or P1 for short, was designed and built by Ferdinand Porsche himself, first hitting the streets of Vienna on June 26, 1898.”

As we would expect from its designer, the first Porsche featured many design and engineering innovations including rearwheel drive and front wheel steering. It also had brakes, which were an optional extra in those days. The car was powered by a Porsche designed electric motor with an eight sided housing.

porsche carrera

Self Drive Cars And Closing Time Chaos On The Roads

I’m always gobsmacked by the unthinking stupidity of those we allow to rule us. While the developed nations struugle with unemployment, due to automation of processes that provide jobs amongst other things, our poticians and the “experts” who advise them are creaming thrir pants over another technological development that will destroy thousands of jobs.

Their latest miracle tachology is self driving vehicles:

Eric Blair
Activist Post

“Automation has already been responsible for the loss of countless jobs in America and around the world. You can see brilliant accounting for this here and here.

Well, you’ve got less than ten years warning that millions more will go unemployed due to self-driven cars. Two fresh reports outline where this is all going.

The first, titled “Computer driven cars will convulse the automotive industry” appeared yesterday in the Detroit News. The article praised the many benefits of self-driven cars, but also pointed out that there will be some losers:
Read all.

Now the article goes on to raise many intelligent points about the negative consequences of bringing in self drive cars (though not the one that concerns me, what about those of us who thing driving is fun).

But what the people cheering, waving flags and going “Woo – ooo – ooo for technology” have not thought of is the way this is going to make chaose of the drink driving laws.