REUTERS: One of Tesla's former biggest supporters on Wall Street said on Tuesday the electric carmaker's shares could fall to US$10 from nearly US$200 now, if tensions with China escalate and sap demand for its cars.Shares of Tesla edged down, heading for their fifth straight session of losses, and bonds weakened, after Morgan Stanley analyst Adam Jonas outlined his worst case scenario.Jonas forecast the shares could be worth US$10 to US$391, with a price target of US$230, a wide range that underscores the confusion and risks about Tesla's future.The company is facing signs of dragging demand as rivals step up electric efforts, as well as issues related to cash flow and manufacturing, its outlook in China and its eccentric, charismatic Chief Executive Officer, Elon Musk."Tesla has grown too big relative to near-term demand, putting great strain on the fundamentals," wrote Jonas, rated a five-star analyst by Refinitiv for the accuracy of his forecasting on the company.The … [Read more...] about Former Tesla bull makes US$10 worst case call on China worries
Tesla s model interior
REUTERS: The "great majority" of solar cells being produced at Tesla's factory in upstate New York are being sold overseas instead of being used in the company's trademark "Solar Roof" as originally intended, according to documents reviewed by Reuters.The exporting underscores the depth of Tesla's troubles in the U.S. solar business, which the electric car maker entered in 2016 with its controversial US$2.6 billion purchase of SolarCity.Tesla has only sporadically purchased solar cells produced by its partner in the factory, Panasonic Corp, according to a Buffalo solar factory employee speaking on condition of anonymity. The rest are going largely to foreign buyers, according to a Panasonic letter to U.S. Customs officials reviewed by Reuters.When the two firms announced the partnership in 2016, the companies said they would collaborate on cell and module production and Tesla would make a long-term commitment to buy the cells from Panasonic. Cells are components that convert the sun's … [Read more...] about Exclusive: Tesla’s solar factory is exporting most of its cells
By David Olive Business Columnist Sun., May 5, 2019 It appears the Trump administration isn’t all that interested in a deal to replace the North American Free Trade Agreement (NAFTA) after all. Last week, White House acting chief of staff Mick Mulvaney was sanguine about the prospect of Congress rejecting NAFTA’s proposed replacement, the United States-Mexico-Canada Agreement (USMCA). “You could stay status quo,” Mulvaney told a California business conference. “Your real Plan Bs are either NAFTA or withdraw from NAFTA.” It might be that U.S. President Donald Trump has reverted to his years-long preference to simply kill NAFTA without replacing it. Trump won’t budge on the reasonable changes that Congressional Democrats seek to make to the USMCA agreement. He also seems determined to keep in place the steel and aluminum tariffs he applied against Canada and Mexico about a year ago. And that alone pretty much … [Read more...] about Time to say goodbye to NAFTA’s replacement?
WASHINGTON: U.S. trade officials rejected Tesla Inc's bid for relief from President Donald Trump's 25 percent tariffs on the Chinese-made computer "brain" of its Model 3 electric vehicles, one of more than 1,000 product denials linked to China's industrial development plans.According to documents filed by U.S. Trade Representative's office (USTR) and reviewed by Reuters, Tesla's and other tariff exclusion requests for Chinese-made products from aircraft parts to biotechnology instruments were all denied because they were deemed "strategically important" to the "Made in China 2025" programme.Tesla did not return requests for comment. Tesla has a separate pending tariff exclusion request for duties on the Chinese-made Model 3 Center Screen.The company in a securities filing on Monday said that "our costs for producing our vehicles in the U.S. have also been affected by import duties on certain components sourced from China."The denials illustrate a systematic approach by the Trump … [Read more...] about US rejects Tesla bid for tariff exemption for Model 3 ‘brain’
Business Tesla Inc said on Friday its offering of 3.1 million shares was priced at US$244.10 per share and Chief Executive Officer Elon Musk will buy shares worth up to US$25 million. 03 May 2019 07:25PM (Updated: 03 May 2019 07:31PM) Bookmark REUTERS: Tesla Inc on Friday raised the size of its planned share offering to 3.1 million shares, priced at US$243 apiece, and said Chief Executive Officer Elon Musk would now buy stock worth up to US$25 million, more than double his initial commitment.Tesla had said on Thursday it would raise up to US$2.3 billion in new capital through shares and debt, easing Wall Street concerns about the money-losing company's ability to overcome a drop in sales and build new product lines.The filing on Thursday also showed that it would offer a total of around 2.7 million shares, with Musk pitching in US$10 million of his own money.Tesla's plan to issue shares and convertible debt comes after the company repeatedly pushed back forecasts for turning … [Read more...] about Tesla raises size of share sale, Musk to buy more