Connect with us

News

TSLA: German readers urged to help bring Elon Musk ‘to his knees’ by betting against Tesla

A Tesla logo on the Gigafactory Berlin site. (Credit: @gigafactory_4/Twitter)

Published

on

Tesla is no stranger to entities that are actively betting against it. Being one of the most shorted companies for years means that it is used to attacks from several fronts. But recently, Tesla ended up on the receiving end of what could very well be the strangest efforts against it to date. 

Just recently, Frankfurter Allgemeine, one of Germany’s esteemed veteran news agencies, urged its readers to bet against Tesla and Elon Musk. The publication did not provide many details or computations to justify its thesis, though it did argue that Tesla’s valuation is far too large for an automaker that profits so little from selling cars. 

Advertisement
-

Using this logic, the FAZ noted that Daimler, which posted a profit that’s 10x as high as Tesla, should be valued at 2,200 billion euros (or about $2.65T) conservatively. This, is, of course, a gross generalization of Tesla’s business that discounts several critical parts of the company, such as its energy business and its software. However, the newspaper did note that there is a good way to address Tesla’s over-valuation.

This is where things become interesting. The report then proceeded to urge readers to help short Tesla stock. The newspaper shared its stance in the following section. “That shouldn’t hold us back now, on the contrary, only by joining forces can it finally succeed in bringing the magician of the markets, who Elon Musk undoubtedly still is, to his knees,” the FAZ said. 

Overall, the German news agency’s advice is quite strange considering that shorting Tesla is arguably one of the riskiest strategies in the market today. Tesla may have remained heavily shorted for years, but it is also known for burning those who short it to a significant degree. In 2020 alone, Tesla short-sellers lost $40 billion as the company’s shares surged. 

Those who bet against Tesla on the advice of the FAZ should then be prepared for the risks of such a decision. Tesla is a volatile stock, after all, and when it breaks out, it tends to reach impressive highs. This was evident in November 2020, when Tesla shorts lost $8.5 billion in that one month alone. Tesla is also deep into projects that may be positive drivers for its stock as well, such as the rollout of its Full Self-Driving Beta software, as well as the release of vehicles like the Semi and the Cybertruck. 

Ironically, Elon Musk actually has a soft spot for retail shareholders. During his brief take-private attempt back in 2018, which saw him trying to sell the company to Apple, Musk’s decision to keep the EV maker private was reportedly influenced in part by the adverse effects of the privatization to retail shareholders. One can only hope that those who take the FAZ‘s advice are willing to take the ride, despite the chances that it may prove to be a painful one. 

Disclaimer: I am long TSLA.

Advertisement
-

Don’t hesitate to contact us for news tips. Just send a message to tips@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

News

SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla

SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.

Published

on

By

SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.

A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.

Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.

The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.

Advertisement
-

The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.

Continue Reading

Elon Musk

Tesla Roadster owners to get “Flying Stunt Mode” and looping track access

Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.

Published

on

By

Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.

Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”

Advertisement
-

At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.

Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.

Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.

The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.

Continue Reading

Elon Musk

How to use Grok Bot to block spam calls and texts

Musk told users to ask Grok Bot to scrub their phone numbers from spam lists.

Published

on

By

Elon Musk has a new use case for Grok Bot, and it is the spam call. On Thursday he replied to an X user named Arash with a short instruction: “Ask your @Grok @Bot to remove your phone number from spam call & text lists!” Arash had said he got tired of the calls, had an AI bot find his number on listing sites and file removal requests, and packaged the process as a free skill for others.

The skill is called Spam-Call Scrubber, which is described to find a phone number on people search sites and data brokers, submits the opt outs, completes the confirmation emails those sites send back, and rechecks on a schedule the user picks. Using it requires the Grok Bot app. The pitch is time saved, since most broker opt outs sit behind separate forms on separate sites.



Musk said Grok Bot now gives each bot its own email address, and that it can detect scam emails. On Thursday he also said SpaceX would make users whole if the bot botches a purchase or leaks a card, then told users to shop away from Amazon after the retailer blocked the agent, as Teslarati reported. The terms of service we reviewed at the time put responsibility for what an agent does on the user.

For Tesla owners, Grok Bot is not just a phone app. Tesla brought Grok Bot into its vehicles on September 22, and we argued earlier this week that the Cybercab’s real advantage may be the errands it runs during a ride. Every Cybercab and the rest of the Model Y Robotaxi fleet has it enabled. The more routine tasks like this one become, the more a rider has reason to hand over something personal in the back seat.

The new Spam-Call Scrubber skill can be downloaded for free and works on sites that honor removal requests, while noting that listings can reappear, and illegal robocallers do not check any registry. Whether Spam-Call Scrubber cuts anyone’s call volume is something the first wave of users will find out, and Musk’s endorsement guarantees that wave is coming.

Advertisement
-
Continue Reading