Tesla Cybertruck makes a believer out of analyst: ‹(It’s) in a different Technology Orbit›


The Tesla Cybertruck may very well be a sign of things to come for the electric car maker, as it is a vehicle that embodies a completely different “technology orbit” compared to the company’s other cars. These findings were recently related by an ardent Tesla bull following a visit to the Fremont factory.

Global Equities Research analyst Trip Chowdhry shared some of his insights from his Fremont visit in an article on finance website StreetInsider. Outlining his thoughts, the analyst stated that the Cybertruck’s technology is something that is “exponentially over and beyond both Model S and Model X.” “(The) Cybertruck is completely in a different Technology Orbit,” Chowdhry wrote.

Explaining further, Chowdhry also noted that based on what he has seen, he would not be surprised if Tesla ends up creating a lineup of vehicles based on the Cybertruck. Propelled by the Model 3 and Model Y, the analyst stated that Tesla may very well launch a “CyberCar,” which would likely be more aggressively priced compared to the company’s current vehicles.

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The Tesla Cybertruck is unlike any of the company’s other vehicles, being unashamedly huge and brutalist. It packs a lot of power and off-road capabilities that Tesla’s other vehicles are not readily capable of, mostly because it was engineered from the ground up to be as tough as possible. But inasmuch as the Cybertruck is radical for its design, it is also groundbreaking for its potential battery costs. The truck is heavy and will likely have a large battery pack, yet the vehicle will only cost slightly more than the Model Y crossover Tesla will start delivering this summer.

This implies several interesting scenarios. Based on the Cybertruck’s specs, estimated weight, size, and up to 500 miles of range, one can assume that it will require a fairly large battery pack. Yet the vehicle’s top-tier Tri-Motor AWD variant is priced below $70,000 before options, seemingly implying that Tesla has reduced its battery costs to a substantial degree.

This makes the Cybertruck a very compelling vehicle to purchase. For the price of a premium crossover SUV like the Jaguar I-PACE, buyers can acquire a 500-mile monster EV with full off-road capability, six seats, standard Autopilot, and enough acceleration to hit 60 mph in 2.9 seconds. That’s a difficult combination to beat.

Tesla has a trend of constantly improving, not just year-over-year, but quarter-over-quarter as well. Based on Chowdhry’s recent comments, it appears that the Cybertruck is the next step in Tesla’s evolution as a car manufacturer. And if more “cyber”-inspired vehicles are indeed in the pipeline, the massive electric pickup could very well be the start of a whole new breed of affordable, long-range, performance EVs.

The Cybertruck’s Dual and Tri-Motor variants cost $49,900 and $69,900 respectively will begin production in late 2021, with the $39,990 Single-Motor entering its initial building phase the following year. The vehicle was recently recognized as the Concept Car of the Year and has been the subject of many pieces of pop-culture since its unveiling in mid-November.

Tesla Cybertruck makes a believer out of analyst: ‹(It’s) in a different Technology Orbit›

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SpaceX prepares new Starship tank for explosive test after rapid construction


Over the last few weeks, SpaceX’s South Texas Starship team has been making progress at a pace unprecedented even for the famously agile rocket company and is moving full speed ahead to kick off a new series of explosive tests as early as this morning.

Ever since SpaceX’s original Starship Mk1 prototype spectacularly failed during a November 2019 pressure test, the company has been rapidly rearranging and modifying the development schedule for its next-generation full-reusable rocket. Be it a side effect or coincidence, SpaceX effectively began closing its Florida Starship factory a week after Mk1’s demise and even shipped some of its Florida-built Starship hardware to Texas in recent weeks. However, most of the Florida workforce (up to 80%) was reportedly redirected elsewhere in the company, avoiding layoffs.

Some portion may have even moved to Texas and joined SpaceX’s Starship Boca Chica facilities. Given just how aggressively SpaceX has been expanding its local facilities and preparing new hardware for the next round of improved Starship prototypes, it seems quite likely that the South Texas outpost did indeed receive an influx of skilled workers. Most recently, the company has demonstrated its rapidly growing expertise in the bizarre art of building steel rockets en plein air by fabricating and integrating new tank domes and steel rings and then shipping the curious contraption to its nearby launch site in a matter of weeks from start to finish.

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Although it’s difficult to determine the chronology of every single part of the mysterious new tank, it’s fairly safe to say that work on its structure began less than a week before SpaceX CEO Elon Musk tweeted a surprise update, indicating on December 27th that he was in Boca Chica, Texas working all night on “Starship tank dome production”.

In simple terms, the business half of SpaceX’s next-generation Starship upper stage and Super Heavy boosters are comprised of three main parts, shared by almost all launch vehicles. Both are rocket stages that must be as light as physically possible while supporting thousands of tons worth of supercool liquid oxygen and methane propellant. The majority of a simple rocket is ultimately a duo of cylindrical tanks capped by tank domes – also known as bulkheads. The bottom bulkhead of boosters and upper stages also serves as a mounting point for an engine section, where the vehicle’s rocket engines are attached to the rocket body in order to transfer their thrust throughout the rest of the structure.

SpaceX CEO Elon Musk says that Starship tank domes have turned out to be “the most difficult part of [the rocket’s] primary structure” to manufacture, thus explaining why he was apparently assisting the Boca Chica team all night on December 27th.

Starship Mk1 exploded on November 20th, 2019 during a nonflammable propellant loading test, a failure that unofficial videos have compellingly linked to the weld joint connecting the rocket’s upper tank dome to its cylindrical tank. That section of the rocket began leaking cryogenic propellant moments before the entire upper dome tore off the rest of the vehicle and launched hundreds of feet into the air.

All hail Baby Tank

In an apparent response to the unsatisfactory results of Starship Mk1’s manufacturing methods, SpaceX has rapidly initiated an already-planned upgrade of its Starship facilities and manufacturing methods in South Texas, taking delivery of a wealth of new tools over the last several weeks. Most recently, SpaceX’s latest step towards demonstrating that it has substantially improved manufacturing quality arrived in the form of a single propellant tank – the same diameter as Starship Mk1 but much shorter than any possible flight hardware.

Quickly nicknamed Bopper (short for Baby Starhopper) by locals and close followers, the miniature Starship test article came together at a truly spectacular pace. Comprised of two single-weld steel rings and two brand new tank domes, it appears that all four of the components were nothing more than parts and steel stock less than three weeks ago. The first sign of activity came around December 19th, when technicians began placing pressed steel sections onto a bulkhead (dome) assembly jig – used to precisely hold the pieces in the right shape and place as they are welded together.

A number of new single-weld steel rings were produced in Texas in the final weeks of 2019, pictured here on December 19th. (NASASpaceflight – bocachicagal)
SpaceX technicians also began assembling the first of two Starship test tank (‘Bopper’) domes around December 19th. (NASASpaceflight – bocachicagal)
Perhaps just 20 days or less after work started on the baby Starship tank, SpaceX transported the new hardware – made up of two domes and two rings – to a nearby launch (and test) pad. (NASASpaceflight – bocachicagal)

Incredibly, aside from taking less than three weeks to go from miscellaneous parts to an assembled Starship tank delivered to the test site, SpaceX technicians appeared to finish stacking and welding its two halves (each a ring and a dome) perhaps a handful of hours before it was lifted onto a transporter and driven to the launch pad.

As of dawn, January 9th, the welds joining the two halves of the mini Starship tank were visibly incomplete and in-progress. Note the bright point and unfinished line near the center, indicative of active welding. (NASASpaceflight – bocachicagal)

Even for SpaceX, moving a prototype from factory to test site hours after its primary structure was welded together represents an almost unfathomably fast pace of work – truly unfathomable in traditional aerospace. Whether or not such a pace of work is smart, sustainable, or worth it remains to be seen, but SpaceX is nevertheless on track to pressure test its new mini Starship tank as early as this morning, potentially resulting in another spectacular overpressure event (i.e. explosion).

If the tank survives up to or beyond the pressures SpaceX has designed it to, it’s safe to say that the next full-scale Starship prototype could come together far sooner than almost anyone might have expected.

Check out Teslarati’s newsletters for prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket launch and recovery processes.

SpaceX prepares new Starship tank for explosive test after rapid construction

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Mazda will intentionally nerf its EV’s performance to make it act more like a gas guzzler


Recent statements from Joachim Kunz, Mazda’s head of Product Development and Engineering, have revealed that the Japanese carmaker will be adopting a rather curious approach to its electric car strategy. For one, the company intends to make sure that its first EV, the MX-30 SUV, will feel familiar to drivers, and it intends to accomplish this by intentionally tuning the vehicle to be less “frenetic” than other electric cars.

This, of course, will result in the MX-30 having performance that is not up to par with other premium electric cars like the Tesla Model Y and the Jaguar I-PACE. But this is not all that is quite strange with Mazda’s EV strategy. The company has also stated that it will not produce vehicles with large battery packs because they are allegedly worse for the environment.

Explaining his point to Autocar, Kunz cited a Japanese University’s study which claimed that a 95 kWh battery pack was less environmentally favorable than Mazda’s Skyactiv diesel engine. Thus, Mazda intends to utilize a rather small 35 kWh battery because it makes more sense environmentally, at least according to Kunz.

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The MX-30 will use a Panasonic lithium-ion battery manufactured in Japan that the company claims will give owners around 130 miles of range and 141 bhp. The company’s research suggested that by 50,000 miles, the Mazda MX-30 and its 35 kWh battery should start trending towards environmentally-friendly emissions.

For buyers who wish to travel longer distances, Mazda intends to release a “range extender system” that utilizes a compact rotary engine. Kunz stated it was too early to release any specific details on the rotary motor, but the system was available for the public to see in Portugal at Mazda’s event for the MX-30. The vehicle is expected to begin production in Europe later in 2020 and in the UK in 2021.

Electric vehicles are good for the environment. They create a smoke-free and environmentally-conscious transportation selection for whoever deems it as an appropriate option. Battery production has seen a drastic decline in CO2 emissions according to a Swedish environmental group. Simply put, there continues to be little to no need to place petrol-powered motors in electric vehicles.

Tesla’s industry-leading battery technology has led to a growth in the electric vehicle sector for a number of reasons. One of the biggest reasons is the fact that Tesla vehicles offer more range than any other electric car on the market and it has to do with the company’s constantly-improving battery technology. With this in mind, Mazda’s EV strategies, particularly with regards to performance and range, seem uninspired at best and questionable at worst.

Mazda will intentionally nerf its EV’s performance to make it act more like a gas guzzler

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Tesla’s replanting of trees near Gigafactory 4 complex may be more difficult than expected


Tesla and the State of Brandenburg are preparing for afforestation in lands surrounding the recently purchased lot where Gigafactory 4 will eventually stand.

Brandenburg BUND Conservation Officer Axel Heinzel-Berndt stated that Tesla officers have been contacted by environmentalists several times since the company has started removing trees from a portion of its €40.91 million, 300-hectare property.

The company has promised to replant three times as many trees as it knocks down in areas surrounding Gigafactory 4. However, Heinzel-Berndt says the task may be more difficult than the automaker thinks because the amount of land optimal for the growth of new trees is small.

“It will be difficult to find arable land on this scale. But it is also conceivable that, instead, species-poor pine forest is converted into mixed forest,’ he said in an interview with taz.de.

Tesla has also summoned the help of a local company to determine what type of trees would thrive in the areas they plan to replant. The company is looking for trees that would be suitable for endangered bats and sand lizards in the area. The electric car maker is planning to relocate the anthills of wood ants that inhabit the area as well.

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Tesla began cutting trees down on 90 hectares of the property on January 6. The company must have the initial tree removal phase completed by February 27 because Brandenburg’s bird breeding season begins a few days later on March 1. Tesla’s Environmental Impact Report stated they were worried about the many different species of wildlife in the area and were mostly concerned about harming as few animals as possible.

Heinzel-Berndt himself supports Tesla’s presence in the country, as electric cars are better for the environment than internal combustion engines. While he is aware that the upcoming production plant is not popular with every citizen, he sees it as an opportunity to improve the environment and the earth and appreciates Tesla’s mission.

“Environmental and climate policy measures should be socially compatible. In this respect, you should not reject such an offer lightly. That is our current state of discussion,” he added.

Tesla has already started posting jobs for the German production facility and plans to hire as many as 8,000 employees when the factory hits its maximum production phase in a few years. Gigafactory 4 will begin producing the Model Y in July 2021 and the company plans to eventually build half-a-million cars a year at the complex.

Tesla’s replanting of trees near Gigafactory 4 complex may be more difficult than expected

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Daimler investors file $1B suit over lack of disclosure on diesel emissions cheat devices


Daimler Auto Group is facing a $1 billion lawsuit from more than 200 investors after it was revealed that Mercedes-Benz, one of Daimler’s manufacturers, failed to disclose that its diesel vehicles were equipped with emissions-cheating technology.

The investors submitted the legal claim at a court in Stuttgart, Germany, home to Daimler’s headquarters. The group of investors who took part in putting the lawsuit together is comprised of lawyers, investment companies, banks, and pension funds from various locations across the globe, according to Andreas Tilp, the attorney representing them.

Investors claim that Daimler has cheated them and did not inform them about the risks and financial implications of installing “cheat” software in the vehicles. The lawsuit will apply to shareholders and investors who bought stock between July 10, 2012, and June 20, 2018.

Daimler has stated that the cases are “without merit” and the company will fight the lawsuit with whatever legal means they have. “We will defend ourselves against the accusations with all legal means,” a Daimler spokesperson said.

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Daimler has already settled an €870 million lawsuit in September with prosecutors in Stuttgart after the company was found to have exhibited “negligent violation of supervisory duties.” The probe from local authorities found the company was trying to sell rigged diesel vehicles.

Mercedes-Benz had big expectations for its electric vehicle project as its EQC was once deemed a “Tesla killer” by critics of the American company. However, the car has only amassed a disappointing 55 units sold in Germany thus far. The company has also unveiled yet another concept car yesterday that was inspired by James Cameron’s Avatar franchise. Similar to most concept cars, the vehicle is not slated for production in the future.

Daimler’s case has eerily similar details to that of the infamous Volkswagen Dieselgate Scandal that rocked the German automaker for a number of years. The lawsuit has cost Volkswagen $33 billion after the company admitted that it had fitted some of its diesel-powered cars with cheat devices so that they could pass emissions tests. Investigations found VW’s Turbocharged Direct Injection (TDI) vehicles were programmed to only use emissions controls during testing, violating the EPA’s Clean Air Act.

Daimler investors file $1B suit over lack of disclosure on diesel emissions cheat devices

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Tesla returns to Pwn2Own hacking competition with Model 3 as target and prize


Last year, Tesla made headlines when it made a Mid-Range Model 3 RWD a target and prize at a Pwn2Own hacking competition. Two hackers participating at the event were able to find a vulnerability with the Model 3’s browser, allowing them to win the vehicle and over $350,000 in prize money. But Tesla is a company that never stays still, so this year, the electric car maker is returning to an upcoming Pwn2Own event this March, armed with a much more secure Model 3 and a bigger cash reward. 

This time around, Tesla is offering three tiers of prizes for hackers who can find vulnerabilities in the Model 3. Hackers who wish to claim the highest “Tier 1” prize would need to pivot through multiple systems in the car to find vulnerabilities. But if they are successful, they will win the Model 3 and a $500,000 prize. But that’s not all. Contestants can also aim to acquire additional options to increase the cash prize to $700,000. 

In a statement to Forbes, a spokesperson from Trend Micro ZDI explained that Tesla’s challenge this year is incredibly tough, but it also comes with a record-setting reward. “This represents the single largest target in Pwn2Own history. If someone can do this, it would also mean 70 total Master of Pwn points, which is nearly insurmountable,” the spokesperson said. “We wanted to include Tesla because they pioneered the concept of a connected car and over-the-air updates for their entire vehicle fleet nearly a decade ago, and have been leading the space ever since.”

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Just like last year, Tesla will be joining other tech companies at the upcoming Pwn2Own event. While Tesla appears to be the only automaker that is willing to test its vehicles’ security against the best white hat hackers in the industry, other mainstream tech companies are also allowing their key products to be targets for the competition. Google’s Chrome, Microsoft’s Edge, Apple’s Safari, and Mozilla’s Firefox web browsers, for example, are all targets this time around for the Web Browser category. At the same time, Microsoft’s Office 365 Plus and Adobe Reader are the targets for the Enterprise Applications category.  

Tesla’s participation in events such as Pwn2Own highlights the company’s Silicon Valley roots. The company’s electric vehicles usually dominate the news cycle, resulting in Tesla being commonly dubbed as a carmaker. But the company is far beyond that, as it is, at its core, a tech firm. This is one of the reasons why Teslas are so different from any other vehicle on the road. Its vehicles are equipped with proprietary software and hardware that provides something akin to an Apple-like experience for customers. 

This distinction is something that Tesla had emphasized since 2014, when the company broke conventions by launching its Bug Bounty program. By doing so, Tesla practically invited white hat hackers to find security faults in its vehicles. Tesla’s efforts have largely borne fruit, with several security features today, such as PIN-to-Drive, being developed as a result of the company’s Bug Bounty program.  

The upcoming Pwn2Own event will be held at the CanSecWest conference, which is scheduled to run from March 18-20, 2020.

Tesla returns to Pwn2Own hacking competition with Model 3 as target and prize

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Tesla Gigafactory 4 clearing team may need to deal with World War II aerial bombs


Tesla is paying close attention to every possible issue it may encounter as it tries to stick to its timeline in building its Gigafactory 4 in Brandenburg. The latest report out of Germany hints businesses in the region seek cooperation with the U.S. electric car maker to help the local economy boom, while another suggests a kind of boom that Tesla definitely does not want to hear — there could be World War II aerial bombs in the Grunheide forest.

Environment Minister of Brandenburg Axel Vogel shared the information with German publication Berliner Morgenpost on Wednesday.

“It turned out (…) that contrary to original expectations, World War II ammunition is suspected on the site – specifically American aviation bombs,” Vogel said. If vintage bombs will be discovered at the Gigafactory 4 build site, the ground will be dug up and the bomb will be disposed of. According to Vogel, the federal government will shoulder the cost of disposal.

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The clearing team has been working at GF4 build site since December and has started to scan the property for undetonated bombs. The area was witness to significant battles such as the Battle of Seelow Heights that happened a few months before the end of WWII where nearly 45,000 soldiers from Germany, Poland, and the Soviet Union died.

Aside from harmful materials from the World War II era, Tesla also reportedly needs to act quickly to move endangered bats and other animals living in the forest to avoid delays with tree and land clearing activities for the site. The Palo Alto, California-based EV manufacturer wants to begin construction as early as possible and begin rolling out Model Y during its initial production phase.

While there are tons of challenges and details to handle in building Gigafactory 4, German publication Der Tagesspiegel reported that the Chamber of Commerce and Industry East Brandenburg received inquiries from 10 companies in the region that seek cooperation with Tesla.

The said companies work in the field of robotics, automation, energy-saving technology, construction, among others. According to local authorities, they will relay the information to Tesla.

“Only Tesla decides how to proceed – we are only messengers,” spokesman Florian Engels of the Brandenburg State Chancellery said.

Tesla made great strides in the Gigafactory 4 deal so far, including the negotiation of the purchase of the land in Brandenburg where the Gigafactory will be built. Just recently, reports emerged stating that Tesla will reportedly just pay 13.52 euros per square meter or about 40.91 million euros for the 300-hectare land.

When the vintage bombs, bats, birds, and other animals are cleared, Gigafactory 4’s construction can go full blast. And once the car plant is operational, a potential local economic boom in Brandenburg may be expected as Tesla will help generate 8,000 to 12,000 jobs in the region.

Tesla Gigafactory 4 clearing team may need to deal with World War II aerial bombs

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Porsche Taycan 4S deemed as ‹Best Electric Car in the World›


The Porsche Taycan 4S was recently recognized as “The Best Electric Car in the World” by British media outlet The Sun.

The publication recognized the German car as the best available electric car today because of its performance, price, and Porsche’s exceptional history as an auto manufacturer.

While Tesla has maintained itself as the world’s leading electric car manufacturer, some believe Porsche’s rich history of producing high-performance vehicles and extensive experience in the auto industry is enough to recognize the Taycan as the best battery-powered car in the world.

“The cream always rises to the top. Tesla can’t hold a candle to German engineering,” the article states.

Porsche initially offered two other variants of the Taycan, the Turbo and Turbo S, following its unveiling in September. In October, the German automaker expanded its Taycan lineup by releasing the 4S for a price of $103,800, undercutting the more expensive, more powerful Turbo version by around $46,000.

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After talking about the Taycan in a positive manner that it deserves, the article goes on to mention that Tesla’s only comparable vehicle is the Model S packed with Ludicrous Mode. The writer states that it “is still quickest and Tesla has a serious headstart with its own Supercharger Network. Elon Musk should also be commended for forcing the likes of Porsche and Audi (with the upcoming e-tron GT) to act.”

Elon Musk has always stated that the competition does not lie within other electric vehicle companies, but rather, the manufacturers that continue to produce petrol-based automobiles that contribute to the climate crisis. However, the Model S is not the most comparable vehicle to the Taycan 4S. The Model 3 Performance is.

The Taycan 4S offers 571 horsepower from a 93 kWh battery pack, and it is capable of going from 0 to 62 mph in 4 seconds. These figures are most comparable to the Tesla Model 3 Performance, which offers 580 horsepower from a 75 kWh battery pack and a 3.2 second 0-60 mph time. The kicker is the Model 3 Performance sells for just about 54% of the price of the Taycan 4S.

Range between the two vehicles is also very different. The WLTP gives the Model 3 Performance a 329-mile rating and the Taycan 4S 207-253 miles with its optional battery upgrade add-on. This is significantly better than the Turbo variant, which received a 201-mile range rating from the EPA.

While it is understandable that Porsche’s new Taycan variants are impressive and a step in the right direction for the German automaker, it is tough to solidify it as “the best electric car in the world”, especially since production has not begun and won’t begin until June 2020.

Meanwhile, the Model 3 continues to establish itself as one of the most popular electric cars in the world, and it continues to gain accolades for its driving dynamics and tech. Tesla delivered over 92,500 Model 3s in Q4 of 2019. If a buyer is looking for a bang-for-your-buck vehicle that can stand toe-to-toe against the best ICE-powered high-performance sedans, the Model 3 Performance definitely fits the bill.

The writer of the article hailing the Taycan as the best EV in the world said, “Show me anything better and I’ll buy you a pint.”

Well, looks like someone owes me a pint.

Porsche Taycan 4S deemed as ‹Best Electric Car in the World›

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Tesla (TSLA) bull suggests taking profit as shorts get brought down to their knees


Tesla’s (NASDAQ:TSLA) meteoric rise has been a particularly painful ride for the companys’ short-sellers, some of whom have been burned and brought down to their knees. This was despite some of Tesla’s most ardent supporters on Wall Street recommending that investors take profit as the stock approaches $500 per share. 

Longtime Tesla bull Ben Kallo of Baird recently downgraded his rating on TSLA stock. While he boosted his TSLA price target from $355 to $525, he has given the electric car maker the equivalent of a “Hold” rating. In a note to clients, Kallo stated that the “risk/reward is more balanced following recent stock appreciation.” He also mentioned that investors’ expectations for the company now seem to be “fairly calibrated.”

With this in mind, Kallo, who has long maintained his “Buy” rating on TSLA stock and who has described himself as “Battle-Worn,” stated that some profit-taking might be in order. “After several years at an outperform rating, which included contentious arguments with (evidently) high-conviction bears, we recommend profit-taking,” he wrote

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After ending 2019 on a powerful note, Tesla stock has continued its meteoric rise. In the first few days of 2020 alone, TSLA shares have gained almost 18%. By Wednesday’s trading, the company’s stock came close to hitting the $500 a share level, further establishing itself as the most valuable carmaker in American history to date. 

These recent surges have been particularly painful for the company’s short-sellers. Among those active in social media platforms such as Twitter alone, some prolific shorts have admitted that they are now trimming their position against the electric car maker. One of these is aggressive Tesla short-seller Mark Spiegel, who has been featured multiple times in mainstream media despite his frequent bouts of alarming misogyny and online bullying on social media. 

Spiegel’s fund, Stanphyl Capital Management, was battered in 2019, and a good part of it was due to the firm’s short position against Tesla. After releasing a report to his clients where he admitted that his fund had underperformed the market yet again, Spiegel stated that he had trimmed Stanphyl’s TSLA short to just 10% of his fund. Previously, it was at 20%. This was a rare act for the short-seller, who is among the most aggressive against the company and its CEO, Elon Musk. 

But amidst TSLA’s recent rise, it appears that the short-seller was brought down to his knees even more. In an update on Twitter, Spiegel stated that he has further slashed Stanphyl’s short against Tesla, reducing it from 10% to just 5% of his fund. With this in mind, it appears that Tesla is starting to become a bit too costly to short, at least for short-sellers like Spiegel. This is despite Tesla still being one of the most-shorted companies in the market.  

This is something that the Baird analyst has stated in his recent note. Kallo noted that while it would be a good idea for investors to take profits at this level, shorting TSLA stock is still a very risky strategy. This is especially true since Tesla is now at a place where it is operating much more efficiently than before. “Despite (overly dynamic) short arguments since inception, the company has continued to grow and execute,” he noted.   

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Tesla (TSLA) bull suggests taking profit as shorts get brought down to their knees

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Tesla Gigafactory 4 sales contract gets approval from State Committee


Tesla’s Gigafactory 4 project has officially been granted a sales contract by the Brandenburg State Committee in Germany.

The Financial Committee of Brandenburg came to an agreement in just two hours to approve the purchase agreement between Tesla and previous landowners for €40.91 million. The 300-hectare property was sold to the electric car manufacturer for just over €13.50 per square meter, around a third of the price of comparable land nearby.

The price was criticized by many on the Democratic side of the Financial Committee. Budget politician Ronny Kretschmer was vocal about his discontent with the land’s purchase price, stating that Tesla should have paid around €40 per square meter, roughly the same price as properties in the nearby Freienbrink Business Park.

However, the land Tesla purchased is not as developed compared to the nearby Freienbrink Business Park, which already has roadways, water lines, and electricity, among others. In comparison, Tesla will be required to build roads, water systems, street lights, and set up electricity on the GF4 complex.

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According to Tagesspiegel, the price of the land could still change because some members of the Financial Committee have required an independent appraisal expert to evaluate the land. These experts are expected to arrive at the GF4 site in late January. If there are significant deviations between the land’s original price and the experts’ appraised value, the price will be adjusted accordingly.

A price that’s too low for Gigafactory 4’s land may actually be disadvantageous for Tesla. Local government officials in Brandenburg believe that if the finalized purchase price for the land is too low, it could end up inhibiting Tesla’s ability to receive subsidies from the European Union. This could negatively affect sales of the company’s vehicles in the long run.

Tesla has yet to decide on whether it would approve the purchase contract and the Committee believes the Silicon Valley-based electric car maker will come to a decision by mid-January. If Tesla approves the contract as a company, the company will have the option to withdraw from the purchase of the land until 2021. Brandenburg can also rescind its position and withdraw if the factory is not built.

Gigafactory 4 is expected to produce half-a-million vehicles per year. The company recently began preparing 159 hectares of the land by clearing trees for the Phase 1 stage of the upcoming complex, a process that needs to be completed by February 27. Tesla has also expressed the intention of planting three times the number of trees it cuts down. Tesla has also been surveying the land for World War II-era weapons that may still be underground.

Tesla Gigafactory 4 sales contract gets approval from State Committee

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