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Tech & Science Elon Musk Has Changed Investors' Views on the Electric Car

04:25  18 february  2020
04:25  18 february  2020 Source:   online.wsj.com

Elon Musk slammed one of Tesla's founders by calling him the worst person he's ever worked with

  Elon Musk slammed one of Tesla's founders by calling him the worst person he's ever worked with Tesla CEO Elon Musk called Martin Eberhard, one of the electric-car maker's founders and its first CEO "the worst person I've ever worked with" in an interview with the "Third Row Tesla" podcast."He is literally the worst person I've ever worked with," Musk said.

Investors increasingly see the future of the car as electric —even if most car buyers haven’t yet. And lately, those investors are placing bets on Tesla to Rival auto makers struggle to become more Tesla-like. WSJ’s Tim Higgins explores how CEO Elon Musk turned Tesla into the most valuable U.S

By Tim Higgins. As longtime auto makers try to sell investors on their visions for the future, they keep hearing the same thing: What about Tesla? Investors increasingly see the future of the car as electric -- even if most car buyers haven't yet.

  Elon Musk Has Changed Investors' Views on the Electric Car © AP / Marcio Jose Sanchez

As longtime auto makers try to sell investors on their visions for the future, they keep hearing the same thing: What about Tesla?

Investors increasingly see the future of the car as electric—even if most car buyers haven’t yet.

And lately, those investors are placing bets on Tesla Inc. to bring about that future versus auto makers with deeper pockets and generations of experience.

Tesla’s stock is up 91% this year through Friday.

That rise has been attributed to Chief Executive Elon Musk's showing some leadership stability and executing on some promises, including two consecutive quarters of profit.

Tesla may have a big advantage over Porsche and GM in the most expensive part of an electric car

  Tesla may have a big advantage over Porsche and GM in the most expensive part of an electric car Tesla may be paying less for battery packs than rivals like General Motors and Porsche, according to Cairn Energy Research Advisors. Last year, an electric-vehicle battery pack made with the kinds of cells Tesla uses cost around 25%-60% less than packs with cells used by companies like Porsche, General Motors, and BMW, Cairn estimated. The battery pack is the most expensive part of an electric vehicle. Visit Business Insider's homepage for more stories. Tesla may have a big cost advantage over rivals like General Motors and Porsche when it comes to battery packs, according to estimates from Cairn Energy Research Advisors.

Image caption Elon Musk has complained before about "negative propaganda". Elon Musk 's bombshell announcement that he is thinking of taking the electric car company Tesla Neither Mr Musk nor Tesla have commented on the lawsuit, which was filed in a federal court in San Francisco.

Tesla's owner, Elon Musk , has said it is an "open secret" that Apple is making a rival electric car . He also predicted vehicles that could not drive themselves would Tesla's Model S - a sports car that ranges from £56,000 to £85,000 depending on the chosen battery capacity and performance - has

And also to trader overexuberance.

But investors and analysts also say it reflects a view that the moment for electric vehicles is arriving.

Tesla, to a large extent, has become the purest proxy for betting on electric vehicles.

Early on it ditched plans for a hybrid electric car—the kind of part-gas, part-electric half-measure favored by traditional auto makers for improving fuel efficiency.

More than just selling an electric car, Mr. Musk has crafted an aura around Tesla with a stated mission of accelerating the world’s transition to sustainable energy.

The excitement around Tesla’s stock signals the market believes the company will be “the sole winner” in the move to electric vehicles, Brian Johnson, an analyst for Barclays, told investors in a note this month.

The SEC is looking into Tesla's finances

  The SEC is looking into Tesla's finances The Securities and Exchange Commission (SEC) in December subpoenaed Tesla asking for financial information. Tesla did not specify the kinds of data and financial arrangements the SEC sought details about, and the SEC declined Business Insider's request for comment."On December 4, 2019, the SEC...issued a subpoena seeking information concerning certain financial data and contracts including Tesla's regular financing arrangements," Tesla said.

Elon Musk has survived a bid to strip him of a key role at Tesla as shareholders re-elected three directors to the electric car maker's board. Instead Mr Musk allowed a YouTube vlogger and journalist, Galileo Russell, to ask 10 questions on the results call. The electric car maker posted a

The electric car maker's share price has slumped since Elon Musk said he wanted to take it private. The billionaire entrepreneur has complained since floating the company on the stock market that Skip Twitter post 2 by @ elonmusk . In talking to our public investors , most were supportive of

He also compared the stock run-up with the overvaluations of the tech boom of the 1990s.

When Tesla on Thursday announced it would issue new shares to raise more than $2 billion, shares rose more than 4%.

The money gives Tesla more financial muscle to fund models and factories.

Meanwhile, top executives at rivals such as General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles NV in recent days have faced pointed questions about the Silicon Valley electric-car maker as Tesla’s market value continued its meteoric rise.

When Tesla was founded 16 years ago, the idea of electric cars competing, let alone replacing gas guzzlers, seemed far fetched.

But more recently, falling battery prices, pressure from governments such as China to reduce pollution through a shift to electric vehicles and an increasing focus on climate change more broadly have heightened expectations that adoption might be attainable.

Read Tesla's aggressive employee handbook, which tells workers they can contact Elon Musk himself if they need to

  Read Tesla's aggressive employee handbook, which tells workers they can contact Elon Musk himself if they need to Tesla's employee handbook is called "The Anti-Handbook Handbook." The document sets a high bar for employees. It also sets Tesla apart from its competitors in the auto and tech industries. Visit Business Insider's homepage for more stories. Tesla has a reputation for being unconventional. The electric-car maker's independent streak extends to its employee handbook, which is titled "The Anti-Handbook Handbook.

Elon Musk has concluded that Tesla will remain public. 8/12 Musk irks investors and directors. Elon Musk has concluded that Tesla will remain public. By doing so he changed the automotive industry forever. The switch to electric cars will happen much more swiftly than it otherwise would.

Elon Musk has transformed several industries. Up to date, he counts with five companies that are changing the world; they will change the future of the younger generations Later on , the company was renamed PayPal and merged with Confinity. He was the largest Shareholder of the company.

Tesla wasn’t the first car maker to embrace electric cars. GM seemed to be cutting a new path in the 1990s with the development of the EV1 only to be cast as a villain when it killed off the two-door car years later to the anger of loyal California customers.

As a startup, Tesla focused on more than just swapping a gasoline engine for an electric motor.

It developed expertise in software and battery technology and pioneered a direct sales model (skipping franchise dealers) that once seemed largely impossible in the U.S.

It made costly missteps, too: Its extreme focus on automating the assembly line and battery factory almost led to the collapse of the company in 2018 as it worked to untangle the mess.

But many investors have been willing to overlook the fits and starts, especially as 100-year-old car giants have struggled with their own existential challenges—bankruptcies, fatal recalls and emissions-cheating scandals.

Tesla’s Model 3 compact car, which fueled its 50% delivery growth last year, has helped show a market exists for fully electric cars, and analysts predict Tesla could turn its first full-year profit this year.

Elon Musk Agrees Tesla Model 3's Australian Price Seems High

  Elon Musk Agrees Tesla Model 3's Australian Price Seems High The Model 3 was supposed to be Tesla's budget option for electric vehicle-fans but import fees and taxes meant that for Australians, it was far from budget. In a strange omission, it seems Elon Musk agrees it's a bit high too.A Brisbane-based electric vehicle (EV) user tweeted at the Tesla founder regarding the high cost of the Model 3 in Australia. Musk responded agreeing the price did seem high.

Tesla global deliveries last year represented a fraction of world-wide new vehicle sales but almost one in four of full-electric deliveries.

Supporters believe that means there is exponential growth ahead, while others question if customers really want EVs.

Fully electric vehicles represented just 1.9% of sales last year while researcher LMC Automotive predicts that share could grow to 11% in 2027.

All that has led senior executives at traditional auto makers to race to put Tesla-killers on the road in coming years. Volkswagen AG’s luxury-car brands Audi and Porsche and GM’s GMC brand showed off electric vehicles on Super Bowl Sunday. Ford, BMW AG and others also plan electric-vehicle model releases this year.

“If Tesla proves to be profitable . . . we think this removes one of the biggest impediments for why legacy [auto makers] were hesitant to go ‘all in’ on EVs,” Adam Jonas, a Morgan Stanley analyst, wrote in a note to investors last week.

Tesla rivals first tried to compete with modest models. The Chevrolet Volt and Nissan Leaf targeted buyers who executives believed would be motivated by environmental concerns or desires for gas savings. Mr. Musk bet performance and cool would win out.

Now the industry is moving in that direction, too, offering sport-utility vehicles, high-end sedans and sports cars.

Car companies have announced $225 billion in electric-vehicle investments by 2023, according to AlixPartners LLP, a consulting firm.

So far, however, none of the offerings from GM and Volkswagen’s Audi and Porsche have ignited the same kind of excitement or sales as Tesla’s Model 3.

Even when legacy car makers embrace electric vehicles, they can stumble. Daimler AG, the maker of Mercedes-Benz, blamed part of its fourth-quarter loss on the challenges and costs of switching over to electric-powered cars.

The problem for electric cars remains similar to what it was back with GM’s EV1: battery cost. Tesla has found ways to reduce those costs, but it is still a battle for all.

Following another disappointing quarter earlier this month, Ford CEO Jim Hackett tried to assure skeptics that he was preparing the auto giant for the future.

“Tesla’s now worth over 5x the market cap of Ford,” an analyst pressed him.

“What’s the message the market’s sending Ford?”

Tesla's 110% stock rally could signal an electric revolution, and this miner expects to cash in .
Tesla stock has rocketed about 110% in 2020, hitting a record high of $US917 on Wednesday. Hochschild Mining said the electric-car maker's rally bodes well for its rare-earth deposit in Chile. Electric-car batteries rely on rare-earth minerals, so Hochschild stands to benefit if Teslas and other electric cars become mainstream. "This project is so unique and so important to the future and to the electric revolution," finance chief Ramon Barua said. Visit Business Insider's homepage for more stories. Tesla stock has skyrocketed around 110% since the start of this year, hitting a record high of $US917 on Wednesday.

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