Tesla Veterans Reveal Fires, Accidents, and Delays Inside Elon Musk’s Company
Tesla Veterans Reveal Fires, Accidents, and Delays Inside Elon Musk’s Company
Their sleek, powerful electric cars are a taste of the future, but the company struggles when it comes to actually building them.
Tesla CEO Elon Musk’s attacks against “sanctimonious journalists” and “divisive” unions have captured the public’s attention in recent weeks, but Musk has bigger problems on his hands: His automaker has struggled to deliver on the promise of a mass-market fully electric car, the Model 3 sedan.
When Musk delivered the first Model 3s last year, he jokingly warned customers and employees that the firm would be entering “production hell.”
But according to several former Tesla insiders, it’s not a joke.
Cars built by hand, fires that turned a paint sprayer into a flamethrower, rampant quality problems, and a bloated workforce plague the factory, the insiders say. That’s on top of an injury rate that Reveal News reports is higher than the industry average, with shocking examples. These interconnected symptoms of Tesla’s “production hell” raise questions about the company’s entire approach to manufacturing, which diverges significantly from the auto industry’s practices that have been honed over decades.
The sources requested anonymity to speak because of Tesla’s history of trying to catch leakers, including once reportedly leaving a “fingerprint” in memos to find who divulged them to the press.
Throughout its history Tesla has been successful in convincing Wall Street that it is more technology company than auto manufacturer and is worth more than Ford. Its software startup-style culture has produced stunning designs and cutting-edge in-car technologies that delight consumers.
But ultimately Tesla’s business is to make cars—and a lot of them. Tesla said it plans to make as many as 1 million Model 3s per year by the end of the decade. Yet it has already fallen behind its targets for Model 3 production. Stumbling on the Model 3 from practically day one, Tesla’s frantic attempts to meet Musk’s ambitious production targets are exacting a heavy cost on its people, products, and culture.
Not Ready to Roll
RELATED IN U.S. NEWS
In the week following the official start of Model 3 production last summer, Musk was asked during Tesla’s second quarter earnings call if the first round of vehicles off the assembly line were “validation prototypes” built to test parts and the production system.
“These are not prototypes in any way,” he replied. “They’re not validation anything. They are full production cars.”
But according to two former Tesla employees, they were hand-built cars made with unvalidated parts.
“That black Model 3, that first production one that Elon said was the first production one? That was a crock of shit,” said one former employee whose work took him to almost every part of the factory. “I walked that thing through the shop, I watched the dudes build it in the back area, the little cave area [known internally as ‘Area 51’], and he drove it off.” The first Model 3s were “ hand walked” through the paint shop, because machines weren’t programmed to recognize that car, the former employee added.
“So they were just sitting there as props,” said a former high-level employee who confirms that the July event cars were hand-built prototypes. The Wall Street Journal previously reported these Model 3s were hand-built.
On top of that, a recently filed lawsuiton behalf of Tesla shareholders accuses the company of securities fraud, alleging management misrepresented Tesla’s ability to begin mass-production of Model 3s in 2017. The lawsuit cites more than 10 former employees to support the allegation that Musk and other top Tesla executives either knew, or were reckless in not knowing, their claims were false. Tesla filed a motion to dismiss the lawsuit, saying it spoke about the challenges publicly in “frank and plain language” like “production hell.”
In a statement to The Daily Beast, Tesla stood by Musk’s comment and referred to an earlier statement that said, in part, “every vehicle manufacturing line in the world has both manual and automated processes” and said it would “take some time to fine tune the line for higher volumes.”
The auto industry typically builds a run of “pre-production” vehicles to validate, or test, parts and production processes as well as the vehicles themselves before beginning to make “production” vehicles for delivery to customers.
“This helps established automakers avoid the prolonged ramp and ‘production hell’ that Tesla has experienced with Model 3,” said Dave Sullivan of automotive-research firm Autopacific and a former auto manufacturing supervisor.
Tesla effectively skipped that step and instead went straight to “production” and evolved its production system over time.
Part of this critical planning and testing phase includes thorough statistical process control and repeatability and reproducibility testing, said Sam Abuelsamid, a senior research analyst at Navigant Research.
“If you look at the anecdotal reports we’ve heard about quality issues with Tesla vehicles, it seems like they haven’t implemented a lot of those kinds of processes,” he said.
“That black Model 3, that first production one that Elon said was the first production one? That was a crock of shit.”
— Former Tesla employee
More than 90 percent of new Model S and X vehicles contained defects requiring rework, Reuters reported in November, citing nine current and former employees. Two sources told The Daily Beast they estimate approximately 90 percent of all vehicles have required repair or rework at Tesla’s “end of line” stations.
“That sounds like something is severely wrong,” said Sullivan.
Both Sullivan and Abuelsamid said anything greater than 5 percent of vehicles needing rework would be a cause for serious concern. Tesla said it thoroughly inspects every car it produces and that the majority of issues are minor and resolved in minutes.
Because rework is labor-intensive at any automaker, it’s likely contributed to Fremont’s ballooning headcount, which in turn contributes to management challenges, said Sullivan.
“If there’s a very high defect rate today, you can only assume that the people they are hiring are gearing up to make repairs on the vehicles coming off the line,” he said.
The plant has “a workforce that’s twice the size of what it’s required to build the car,” said one former high-level employee. With more than 10,000 factory employeesmaking about 100,000 cars last year, Tesla’s Fremont facility makes about 10 vehicles per employee at a factory that never made fewer than 26 vehicles per employee (and made as many as 74 vehicles per employee) when it was a joint venture between General Motors and Toyota.
Tesla does have non-production workers at the Fremont factory and manufactures components like seats in-house that other automakers source from suppliers, both of which inflate the plant’s headcount.
“Given that we do more of the manufacturing ourselves, it is not fair to compare our vehicles per employee to another company’s vehicle per employee,” Tesla told The Daily Beast.
Meanwhile, Tesla has failed repeatedly to meet Musk’s ambitious targets for Model 3 production, including his 2016 estimate of 100,000 to 200,000 vehicles produced in the second half of 2017. In early 2017, Musk predicted that Tesla would build 5,000 cars per week by the end of the year, but it still hasn’t achieved that goal. In mid-2017, Musk lowered the target to 1,500 cars for the entire third quarter of 2017, but Tesla ended up producing only 260 cars over that period.
These failures have put Model 3 production under Wall Street’s microscope and have increased the pressure on workers tasked with ramping up production.
The size of the Fremont workforce combined with the frantic pace of work and production has led to weaknesses in the plant’s maintenance operation, two sources said. They described shutdowns and snafus that regularly cost valuable production time caused by lack of maintenance.
Most dramatically, it has resulted in fires.
Two former employees who worked in the paint shop told The Daily Beast that at least three fires have broken out at Fremont’s paint operations since 2016. Lack of maintenance led to paint building up on paint-spraying machines and grounding straps, the sources said, and in at least one instance sparks ignited the paint and practically turned the paint sprayer into a flamethrower.
“Literally it’s a torch fucking flying around, the paint spraying, the paint’s on fire, scorching the car,” one former paint shop employee said.
In April, CNBC reported that one fire had broken out in the primer station of the Fremont paint shop, which characterized this fire as “small” and “immediately contained and extinguished in a matter of seconds.” CNBC subsequently reportedthat the fire was one of four in the factory since 2014, that it caused the paint shop to shut down for at least two shifts, and forced Tesla to decommission two burnt sprayer robots.
“Any fire in any manufacturing facility of any type, especially three in less than two years, should be sounding more than fire alarms,” said Sullivan, the auto analyst.
Tesla said it’s been working to improve safety in the paint shop in recent months, including a “maintenance effort involving cleaning and calibration.”
One former employee who regularly worked in the paint shop also said that lack of maintenance caused paint buildup on a conveyor, resulting in a Model S body falling into a dip tank. The accident caused an 8-hour shutdown of the paint line and required the draining of 80,000 gallons of coating in order to recover, the source said. Lack of maintenance also caused a 30-year-old overhead conveyor to break and drop a 1,500-pound battery rack, the source added.
“This is false. We are not aware of a single instance where lack of maintenance caused any issue like what’s described above,” a Tesla spokesperson said.
Pushing for additional maintenance was a struggle, according to Seth Love, a former maintenance engineer who left the company in December. Giving the example of Fremont’s south paint shop, where bumpers and other plastic parts were painted, he said “that shop was so old that they kept holding off on maintenance.” Love said managers told him maintenance was deferred in favor of temporary fixes “just to get the plant going again.”
“So it was constant battles, arguing back and forth with management, saying ‘give me the time to do the actual repairs,’” Love said.
“We regularly clean and maintain all the surfaces, ducting and nozzles,” Tesla said. “We continue to have regularly scheduled maintenance for paint operations.”
To speed up production, two former paint shop employees said temperatures in the oven used to dry paint were raised. This has led to incidents of vehicle bodies and bumpers being ruined by excessive heat and thrown out, the sources said.
“This is false. It’s simply not our process to increase temperature to shorten the baking time,” a Tesla spokesperson said.
Though sources say Tesla management has tried to improve safety by changing the plant’s layout, adding protective barriers, removing cubicles from the factory floor, and emphasizing safety to workers, they said pressure to increase production outweighed the effort. Tesla’s struggle to prevent the unsafe practices described by sources, which the company said are not approved processes, further illustrates the management challenges the factory faces.
“It sounds like they are scrambling to get as much production as they can from limited capacity and running their equipment as hard as they can,” said Abuelsamid. “Often times the major cause of injuries is not the design of the equipment, but improper use and maintenance.”
Workplace injuries are not a new phenomenon at the Fremont plant. Studies of Tesla’s workplace injury data by both WorkSafe (PDF) and Reveal News showed that workers there were injured at a significantly higher rate than the industry average—722 injuries last year, according to Reveal. Reveal also reported graphic examples of the kinds of injuries Tesla’s workers have sustained, noting that “workers have been sliced by machinery, crushed by forklifts, burned in electrical explosions and sprayed with molten metal.”
In response, Musk tweeted, “It is strange that big auto companies literally have thousands more factory injuries than Tesla & millions more auto deaths, but somehow get less coverage. We are not perfect, but we’re doing our best to make clean energy real & be a good company.”
Who is violating the law protecting Tesla by withholding investigations and prosecutions?
Why are they allowing American citizens to continue to die from the 1.) "sudden acceleration electronics defect"; 2.) "The failed Auto-pilot electronics defect"3.) "The deteriorating and deadly lithium ion batteries" and 4.) numerous other defects widely documented in the news media and filed lawsuits?
"Why Elon Musk is a really bad guy and why his business operation is a corruption scam
By Former Tesla Staff
You may have run across Musk’s self promoting, narcissistic, multi-billion dollar, self-aggrandizing PR hype but here is the other side of the coin. We know these facts from personal interaction with Musk, his companies and his politicians. Everything in this letter can be proven in a jury trial, Congressional hearings or live TV debates. Musk will do anything to keep this information from getting out but… it is too late for him! While this may sound like a bad Hollywood movie script. It all really happened and there is now massive hard copy evidence to prove it.
Elon Musk exists because he bribed DNC politicians including Obama, Clinton and Senators Feinstein, Reid, Boxer, Harris, Spier and Pelosi to give him free taxpayer cash and government resources from the Department of Energy and the California political tax pool. This is proven when you follow-the-money and the insider trading, stock ownership and crony payola kick-backs.
The Energy Dept (DOE) has been covering-up organized crime activities at DOE in which DOE funds are being used as a slush-fund to pay off DNC campaign financiers and to pay for CIA/GPS Fusion-Class attacks on Silicon Valley business competitors. DNC campaign financiers and DOE staff share stock market holdings with each other under family trusts, shell corporations and layered Goldman Sachs accounts. The deal was: Obama funds Tesla, Musk conduits campaign funds to Obama, top Obama staff profit off of insider Musk stocks.
Elon Musk is a criminal, a mobster, an asshole, a balding fake-hair wearing, plastic surgery-addicted, bi-sexual douchebag, woman-abusing, sex addicted, tax evader. We can put this in writing because all of those identifications regarding Musk can be proven in court and are documented in existing lawsuits and news stories.
Musk exploits poor people and child slaves in the Congo and Afghanistan to mine his lithium and Cobalt. Look up this phrase on the top search engines: “child labor electric car batteries”.
Musk spends billions per year to hire Russian trolls, fake blogger fan-boys and buy fake news self-glory look-at-me articles about himself. Musk thinks he is the 'Jesus' of Silicon Valley and he will do anything to make the public think so. Musk is insecure because his father was abusive and his “trophy wife” Mother is overbearing so he developed sociopath-like mental issues. Musk has been professionally diagnosed as a 'psychotic narcissist. He publicly stated on an investor call that he uses drugs and alcohol to get through the night. We have the tapes.
Musk relies on Google and the DNC Main Stream News (MSN) to hide bad news about him. Fake News manipulator Google is run by Larry Page. Larry is Musk's investor and bromance ‘Butt buddy’. They share an apartment. Musk uses massive numbers of shell companies and trust funds to self-deal, evade the law and hide his bribes and stock market insider trading. His brother ran Solar City and is now under federal investigation for securities fraud.
A huge number of Tesla drivers have been killed; pedestrians and oncoming drivers have also been killed, and Musk covers it up.
The DNC and the MSM refuse to allow any articles about Musk's crimes to be printed because they benefit from Musk's crimes. VC’s Tim Draper and Steve Jurvetson are so fanatical about not being embarrassed from a Tesla bankruptcy that they will pump the TSLA stock and threaten anybody who might disclose the Musk misdeeds. Peter Thiel, a Musk ‘boyfriend” also protects Musk. Musk, and his cronies, use Palantir, Google and related software to scan the entire internet every few minutes for any occurrence of the words: “Musk”, “Tesla” or “Tesla Fire”. They send trolls and fake bloggers (Many of them Russian) to put pro-Musk comments on the comments section of any blogs or articles discussing those topics and try to flood out the truth about Musk. In EVERY blog that you read that mentions 'Musk', at least 1/3 of the comments have been placed their by Musk's paid shills. There are no “Tesla Fan Boys”. All of the fanatic Tesla comments on the internet are Musk’s, Thiel’s, Jurvetson’s and Draper’s fake fanboy trolls. Musk, himself, stays up late at night pretending to be a ‘Tesla Fan Boy’on blogs. Main Stream News organizations who refuse to cover the story reveal themselves as shills and are then targeted for bankruptcy (ie: Time, Gawker, etc.) because they serve no public service.
The Silicon Valley Mafia promotes Musk as a "Tech God" leader but, in reality Musk is the same kind of "Leader" as Charles Manson, Jim Jones, David Koresh, Swami Rajneesh and Al Capone. His own people have sued him for fraud and lies once they realized that Musk-ism and Scientology had so much in common.
The 'Silicon Valley Mafia; cartel of frat boy sociopath venture capitalists like Steve Jurvetson, Tim Draper, Eric Schmidt, et al; threaten those who do not support the cult of Tesla or their political candidates.
Musk holds the record for getting sued for fraud by his investors, wives, former partners, employees, suppliers and co-founders. Elon Musk has gone out of his way to hire hundreds of ex-CIA and In-Q-Tel staff and assign them to "dirty tricks teams" to attack his competitors and elected officials who Musk hates.
Musk and his culture are being sued for abuse to women and blacks and the Unions hate him for lying to them. https://stopelonfromfailingagain.com reveals even more Musk lies.
Musk never founded his companies. He took Tesla away from the founder: Marty, in a hostile take-over!
Musk's "Starlink" satellites are domestic spy and political manipulation tools - never get your internet from anything SpaceX has launched. SpaceX is entirely a domestic spy operation. Musk's "Mars" scheme is just a PR distraction.
The same kind of EMF radiation proven to cause cancer from cell phones exists in massive amounts in a Tesla.
Musk can't fix a car or build a rocket and has almost no mechanical skills.
If you pull a report of every VIN# of every Tesla ever built and cross reference that with insurance, repair and lawsuit records you will find that the "per volume" fire, crash, death and defect rate is THE WORST of any car maker in history! Musk's lobbyists have bribed DOT and NHTSA to stall safety inspections. NO COMPLETE UNCOMPROMISING SAFETY REPORT ON TESLA CARS HAS EVER BEEN PUBLISHED but we have a copy of a hushed up report that would put Tesla out of business. Musk's 'Autopilot' system is a scam to get government cash BUT IT NEVER WORKS. The Tesla 'Autopilot' has crashed into police cars, pedestrians, swamps and driven owners over cliffs.
Musk is a lying con artist and partners with Goldman Sachs to rig the stock market. Sachs has a dedicated team of 18 men who rig stocks and valuation bumps for Musk.The "Silk Road" Cocaine and Murder-For-Hire website was created at Musk's SpaceX and Musk's In-Q-Tel staff ran two transport planes filled with drugs; listed as "Cocaine 1" on FAA records.
Over 1000 witnesses can prove every one of those claims in any live televised Congressional hearing! Senators Dianne Feinstein, Harry Reid, Nancy Pelosi, Kamala Harris and their associates own the stock in Tesla Motors and/or it's suppliers and mining companies. That is why they criminally help cover-up investigations of Tesla! All of this was reported, in writing, to James Comey, Patricia Rich and David Johnson at the FBI. Tesla and Solyndra sit on the same land and share staff, contracts and lobbying. California politicians own parts of both.
Why aren’t all of those parties in prison if it is so easy to prove the crime? Think back to recent history: the heads of the Department of Energy, the FBI, The DOJ and the U.S. Attorney General were kicked out of their jobs for corruption. THIS was the corruption they were doing. They all knew about this crime but they were covering it up.
Musk took over Tesla Motors in a hostile take-over in order to exploit lithium, cobalt and other mining corruption deals for his business partners. Let’s take a look at the ‘lithium’ in Musk’s horrifically miss-engineered lithium ion batteries:
His batteries cause wars in the Congo, Afghanistan and Bolivia from the corrupt mining deals involved with mining lithium and cobalt. Lithium ion batteries are insider trading-owned by ex-CIA boss Woolsey and DOE Boss Chu. Lithium ion batteries excrete chemicals that mutate fetuses when they burn; destroy your brain, lungs and nervous system when they burn; kill the factory workers who make them; cause Panasonic to be one of the most corrupt companies in the world; poison the Earth when disposed of; can't be extinguished by firemen; poison firemen when they burn; are based on criminally corrupt mining schemes like URANIUM ONE; Have over 61 toxic chemicals in them; come from an industry that spends billions on internet shills and trolls used to nay say all other forms of energy; and are insider-trading owned by corrupt U.S. Senators who are running a SAFETY COVER-UP about their dangers.
Apple products with lithium ion batteries have been exploding and setting people on fire. Over time the chemical dendrites, or deposits, inside each battery grow worse and increase the chances of explosion as they age - LITHIUM ION BATTERIES BECOME MORE AND MORE LIKELY TO EXPLODE AS TIME GOES ON AND AS THEY AGE. This is not a theory. This is a scientific fact. That is why you hear about more and more lithium batteries catching fire and blowing up. Additionally, scientists also speculate that the increasing presence of low energy nuclear background energy and wifi energy in the environment is making lithium ion batteries explode more often lately. This theory is upheld by the increasing number of FAA reports about commercial airline cabins suddenly “filling up with toxic smoke” as some lithium ion battery explodes in someones overhead luggage. As commercial jets go higher they lose the protection of the atmosphere and are subjected to more gamma (and other) radiation from overhead. This makes the already unstable lithium ion batteries on board blow up.
Tesla owner's had had more DUI's, abuse filings in divorce proceedings and crashes than any other car maker PER VOLUME. This makes Tesla the #1 car for douche bags and scummy people.
Tesla's own federal patent filing records confirm that Tesla batteries are as dangerous as this document reports.
"Bad Guys" have figured out how to make them explode remotely in devices by making the device electronics cause the batteries to overload. The dangers of lithium ion batteries are hidden by CNN and Main Stream News (MSN) because pretty much only the DNC people profit from them and the DNC folks control CNN and the MSN. George Soros owns part of Tesla Motors so that Soros can help conduit DNC cash.
The Obama Administration promised Silicon Valley oligarchs the market monopoly on lithium ion batteries and the sabotage of fuel cells in exchange for campaign financing and search engine rigging; United States Senators that are supposed to protect us from these deadly products own the stock market assets of them so they protect them and stop the FDA, OSHA, DOT & NHTSA from outlawing them. There have been thousands of defect reports filed on Tesla cars.
Tom Steyer is a notorious DNC financier. His partner, Margaret Sullivan ran, the federal USAID agency, USAID sent all of the DNC campaign financiers in Silicon Valley a federal ‘report’ from USAID that said there was “A TRILLION DOLLARS OF LITHIUM IN AFGHANISTAN” and promised to give those lithium mines, EXCLUSIVELY, to the Silicon Valley venture capitalists if they funded and web search manipulated the election for Obama to take over the White House. We have the documents proving this. In other words, a re-up of the Afghan War was caused by Elon Musk and it killed American soldiers so that Musk could buy more mansions and trophy wives.
If a Tesla battery gets wet it will explode and cause all of the other batteries to explode in a "cascade of explosions". Water makes Tesla batteries explode. In an accident, when a Tesla rolls over, molten metal & plastic can drip on & burn the occupants alive and seal them in molten metal.
Alkaline, NiCAD and hundreds of other battery chemistries DO NOT have all of these problems but Lithium Ion batteries get a monopoly because of politician insider trading owner-ships.
Tesla Motors has caused far more deaths and injuries than the world generally knows about. A recent fire on U.S. Highway 101 near Mountain View, CA, burned the driver alive and killed him. In Florida two kids died in a Tesla, burned alive, screaming in agony. A man died in agony in a Tesla crash in Malibu that set Malibu Canyon on fire. A young woman, at the start of life, and her boyfriend were burned alive in their crashed Tesla. There are many more deaths and crashes than you have seen in the Main Stream News (MSN) The deaths and the cover-ups are endless.
Senators Dianne Feinstein, Harry Reid, Nancy Pelosi, Kamala Harris and their associates own the stock in Tesla Motors and/or it's suppliers and mining companies and they cover-up and halt investigations and laws designed to save the public. They, and their crony's, spend over $1B a year to shill and troll hype about lithium ion batteries and cover-up the dangers. Lithium ion EVs are more prone to battery fires. Experts say that their lithium-ion batteries can fuel hotter fires that release toxic fumes and are more difficult to put out. Lithium ion fires keep reigniting which explains why it takes so long and requires copious amounts of water or foam (it is an electric fire, after all) to smother the flames. Tesla employee Bernard Tse and his team warned Elon Musk about these dangers in 2008 and they got fired and/or warned to "say nothing" by Musk. Three top Tesla engineers died in a plane crash next to Tesla offices in San Carlos after two of them agreed to become whistle-blowers.
The DNC bosses, Congress people and federal executives own the stock in lithium, Solar and EV markets and use kickbacks from those markets (Especially via convoluted campaign finance laundering via Elon Musk) to finance the DNC.
The DNC bosses and Musk use character assassination as their main political tool against any member of the public who speaks out against their felony stock market scams and PizzaGate-like scandals. The Harvey Weinstein reports by Ronan Farrow show that they have teams of hired goons that they pay to destroy people's lives.
They use Black Cube, Mossad, In-Q-Tel, Stratfor, Gawker Media, Gizmodo Media, Media Matters, David Brock, Sid Blumenthal, NY Times, Google servers, Facebook servers, Podesta Group, Perkins Coie, Covington & Burling and a host of "media assassins".
Gawker and Gizmodo Media set-up the attack stories and, in paid partnership with Google, Google kicks their attack links around the globe, in front of 8 Billion people, forever. Google locks the attack articles of its enemies on the front top search results of Google search results forever, on purpose! Google and Musk are partners-in-crime. Larry Page steals technology for Google and Musk meets with Larry Page to advise him on which technologies to steal and how to bypass FEC laws. Musk has exceeded FEC campaign finance limits by billions of dollars via “in-kind” services.
Had the full scope of these facts been acted on during the Obama Administration, Barack Obama would have become the first modern sitting President to have been arrested in the White House. Barack Obama was fully aware of these schemes, crony payola deals and corruption crimes and discussed the implementation of these crimes, daily, with Rahm Emanuel, David Plouffe, Steven Rattner, Robert Gibbs, John Podesta, David Axelrod, Eric Holder and Jay Carney in the Oval Office.
THIS corruption is what all of the big political scandals are about today!
THIS corruption involves TRILLIONS of dollars of corrupt mining deals, automotive and energy monopolies!
THIS is why the federal budget analysis reports are showing TRILLIONS of dollars of 'untraceable' losses from the United States Treasury from 2006 up to today!
THIS is why a large number of reporters, whistle-blowers and prosecutors suddenly, and mysteriously turned up dead!
THIS can all be proven in jury trial and in live televised Congressional hearings!
There is so much more to reveal but you get the picture.
This is all being covered up because top State and Federal officials are in on it, own the stock in it and are so deeply involved in it that they could go to Federal prison when this all comes out.
This is Part 1. There is more to be released. Show this document to the United States Senate and see what they say about all this..."
A complete guide to how Elon Musk has raised, and then spent, billions of dollars.
The company that Elon Musk built to usher in the electric-car future might not have enough cash to make it through the calendar year.
The anxieties that lurk beneath the tremendous ambition of Tesla Inc. moved into the forefront in recent weeks. The company again fell far short of its own production targets for the mass-market Model 3 sedan, another person died in a crash involving its assisted-driving feature and Musk entered into a public dispute with federal safety regulators. Tesla’s once high-flying stock, buffeted by a downgrade from credit analysts, has dropped 24 percent from its peak in September.
There’s a good reason to worry: No one has raised or spent money the way Elon Musk has. Nor has any other chief executive officer of a public company made a bankruptcy joke on Twitter at a time when so much seemed to be unraveling.
Tesla is going through money so fast that, without additional financing, there is now a genuine risk that the 15-year-old company could run out of cash in 2018. The company burns through more than $6,500 every minute, according to data compiled by Bloomberg. Free cash flow—the amount of cash a company generates after accounting for capital expenditures—has been negative for five consecutive quarters. That will be a key figure to watch when Tesla reports earnings May 2.
Read the full story here:
In years to come, we will all look back and wonder how so many people were taken in by this shyster, who makes Enron look honest.
A lot of Musk’s money has been extracted from suckers, who think he is God’s gift, as Bloomberg report:
One of Tesla’s greatest strengths is its ability to monetize the patience and goodwill of its customers and loyal fans. The company is sitting on a staggering $854 million in customer deposits as of the end of 2017.
Since Tesla sells its products direct to consumers, without relying on a dealer network, customer deposits are cash payments that essentially serve as interest-free loans—and these loans can stretch on for years. If Tesla were to go bankrupt, those deposit holders would likely be wiped out.
Tesla is holding customer deposits for two vehicles that aren’t even in production yet: an electric Tesla Semi ($20,000 deposit) and a next-generation Roadster (either $50,000 down or the $250,000 retail price paid up front to reserve a limited edition). Even customers interested in installing an array of solar roof panels or the company’s Powerwall home battery must hand over $1,000 to place an order.
Tesla doesn’t break out deposit numbers by car, but the vast majority comes from $1,000 reservations for the Model 3. When Musk first introduced the lower-priced sedan in March 2016, fans stood in long lines at Tesla stores. Two years later, the slower-than-expected pace of production means that most of the more than 400,000 reservation holders are still waiting. And new people appear to be joining the queue: As of April, the company reported “net Model 3 reservations remained stable.”
There’s an additional source of free money from loyal believers: An unknown number of customers have paid up for vehicle features—$3,000 for “Full Self Driving” capability, for example—that Tesla thus far hasn’t figured out or released to anyone.
The consumer psychology that sees hundreds of thousands of people essentially extending an interest-free loan to a public company is unusual, to say the least. Consider the devotion of Bruce Sidlinger, a 60-year-old aerospace engineer who lives in Flagstaff, Arizona:
“The morning after the Roadster was announced, I put a deposit down. Putting down $50,000 for a Roadster that won’t be out for a few years is kind of like buying a bond that returns zero. Elon Musk is one of our planet’s great hopes. I would offer a kidney to him if he needed it.”
Keep in mind that Sidlinger already owns both a Model S and a Model X. He drove across the country to Florida earlier this year in a car made by one Musk company so he could watch a rocket made by another Musk company take flight for the first time.
I think the phrase “more money than sense” rather sums it up
TAGS: Silicon Valley Mafia, Afghan, TSLA, Tesla, Tesla Investigation, SEC Investigation, Smedley Butler, Musk, Spacex, Google, Bribe, Political bribes, Lithium ion, lithium ion danger, DOE, Paypal Mafia, AngelGate, Steven Chu, Schmidt, Obama, Solyndra, Crony, Political Insider, Feinstein Coruption, Pelosi Corruption, Cleantech, Political Poisoning, Clinton Deaths, Obama Campaign, DNC Spy, Cobalt Mining Child Labor, In-Q-Tel, Uranium1, Domestic Spying, Kleiner Perkins, Draper Fisher Jurvetson, Vinod Khosla, Tim Draper, George Soros, Fusion GPS, Gawker Media is the DNC, Gizmodo Media is the DNC, Department of Energy Slush Fund, Google Defamation Attacks, DOE Corruption, Election Rigging, Google's Election Manipulations, Silicon Valley Blacklist, Google Sex Scandals, Pelosi, Crony Capitalism, Feinstein, Green Payola, Election Hacking, Eric Schmidt Corruption, CIA Abuse, New America Foundation Corruption, National Venture Capital Association Corruption, Lithium battery scandal