Final Thoughts (Fall Semester)

As far as blog posts go, this went extremely fast. Did I learn more about Tesla? Probably not. But I am glad that I got to share my love for something with other people. Im sure many of my readers, which was no more than three a week, felt compelled to read my responses and entries each week. It might have been a drag, as it was for me, but like I said, I at least got to share something I am passionate about with other people. Howver, although some of you may have been lying, your comments did seem to show some real interest in my topic.

Model S | Tesla

Model S https://www.tesla.com/models

 

As a personal reflection, I really do like Tesla. I think that is to do with many of the values that the brand and myself have in common. Although it may be odd to compare a brand values to a humans personal values, I will do it anyway. Tesla stands for innovation, hard work, and driven success. The company had started out from almost nothing around the time I was born. And since its inception and my birth, both Tesla and myself have grown into something more than anyone could imagine. In the same sense it is how many people felt about Ford when it first started. An American made company that was easy to root for.

2021 Tesla Roadster: What We Know So Far

Tesla Roadster https://www.caranddriver.com/tesla/roadster

 

As for the future of this blog post, I may fine tune my topic and may shift to a broader industry to keep interest, as I know one topic week after week can get boring. This fall was also my first time really writing about something I was passionate about, and I quite enjoyed it. It was an experience that I don’t regret, and at times, felt that it was easy to write about something that you enjoyed so much. I can only hope that sometime in my future, I can purchase one for myself.

I want to be apart of the future. I want to be apart of the company that I love so dearly. As for now, I feel apart of it solely due to my stock holding in the company, but I want to really feel what the vehicle rides like. To some people Tesla is a status symbol, but for me it is much more than that. I sincerely hope the past ten entries have proven that to my readers. Until next time.

Tesla Tequila

Yes, you read that right. Tesla-quila. Tesla is a car manufacturer; however, they have officially made a Tequila for a staggering price of $250. After much speculation of this product in April of 2018, Elon Musk had actually patented the name and product. In a tweet by Musk, he had joked about the idea of Tesla creating its own liquor. See the tweet here.

Although the idea may come as a surprise, this is nothing new as far as weird brands of tequila go. George Clooney had created his own Tequila brand “Casamigos” However, this is the first Tequila to be produced by a car manufacturer. Tesla Tequila is another one of those marketing stunts that I had discussed before. When the company gets a little “dry” like tequila, they create a new marketing stunt to bring attention to the company again. Earlier this year, Musk had created red shorts for men and sold them on Tesla’s website for $69.420. A weird price, but I think everyone can come to a conclusion as to what it means.

a

Tesla Tequilla as shown on Tesla.com

 

Can you imagine if Ford made a tequila? What would the world’s reaction be? Or if Hyundai made a pair of pants that were a joke? Elon Musk is quite the character and never fails to disappoint in the PR industry. Not only are his car’s top of the line, but he actively makes it his mission to please his customers with excitement. No other company is this fun. Tesla appeals to not only millennial car lovers, but Gen Z’s that also love crazy and unique companies. As for the flavor of this Tequila, I cannot vouch for, but I do know that whatever the taste, people will love. Tesla has also become an aftermarket sales brand. This means that these secret product drops like the red shorts and tequila fly off the shelves and are sold on sites like eBay for double and sometimes and triple the price.

Tesla Short Shorts

Red Shorts as shown on Tesla.com

 

As a Tesla fan, I am more than excited to see what the future product that makes absolutely no sense is. Only Elon Musk knows what his next marketing stunt is going to be. Oh, and by the way, the stock price took a “spike” up as well. I wonder if this Tequila is included in the self-driving premium package? After all, you could drink and relax while your car drives itself all around the city.

The Future Looks Electric!

Electric cars are the future. Climate change is something that humanity will forever be trying to reverse and slow down. One of the main pollutants in our society is carbon monoxide—an emission of motor vehicles that run on gas. Electric cars, however, are much more green and produce little to no emissions in our air. I know Tesla is discussed a lot on this blog, but they are the leaders in the industry and are the future of green cars. Electric cars have risen in sales, and that is partially due to the government subsidy that is given to consumers when they purchase a vehicle.

Chart: Electric Car Stock Ramping Up at a Fast Pace | Statista

Graph showing growth in electric car sales. https://www.statista.com/chart/14118/global-electric-vehicle-stock-by-year-and-engine-type/

 

Electric cars are also predicted to be half of the market by 2040. Personally, however, I believe this number is almost unachievable. With cars being produced with gas-powered engines, there would have to be an immediate halt of production to get consumers to purchase new vehicles that are electric and have or half the population by 2040 be electric. Consumers do not buy a new car every year, and many like to hold onto cars for years after purchase. Also, the used car market will be predominately gas-powered engines for the next 40 years as well. In addition to that, the uncertainty around electric cars being sold as used cars.

Are Electric Vehicles Really Zero-Emission? | Tech and Facts

“Recycled Car” https://www.techandfacts.com/are-electric-vehicles-really-zero-emission/

 

As I have previously stated, electric cars are not only a commodity but also a necessity. Climate change is only going to get increasingly worse, with more and more drivers getting cars and licenses every year. Growing economies lead to more cars in one household, and these new cars need to be electric. The air in major cities is more heavily. Los Angelis is one of the most polluted cities in the US, and no one can argue that the mass amount of motor vehicles is not to blame for the pollution. See the map here.

Speaking in ENG147H terms, electric cars need to be a paradigm shift that takes palace. If it is not, we will be writing essays in the future about how we could have saved the earth, or at least helped it. Either that is our reality, or students will be writing about how humans saved the earth with a shift from gas-powered to electric-powered vehicles.

Next week we will jump back into Tesla and discuss the stagnant stock price of TSLA over the past month.

Nikola vs Tesla

Tesla seemingly has no competition in the car industry as it presently stands. However, there is reason to believe that a new company is going to try and give Tesla a run for their money. This company is Nikola. 

Nikola Badger hydrogen-electric pickup isn't really that important, CEO alludes - Roadshow

Nikola Truck https://www.cnet.com/roadshow/news/nikola-badger-hydrogen-electric-pickup-ceo-gm/

Nikola has not yet produced a single car, or even apart. As it sits now, Nikola is a company that is all based on speculation. After going public, investors scrambled to invest in the company even with a lack of real products. Many seminars and video projects show what the future of the company has in store for its consumers. The company will specialize in the production of electric trucks. According to Nikola the batteries will be more energy-efficient and have longer-ranged than Tesla.
At this point, Tesla has no competition with Nikola, but Tesla has publicly said that they are not in direct competition with Nikola, but recently Tesla has made their concept of an electric truck a reality and has entered the commercial transportation market with Nikola.
As far as Nikolas stock goes, there are many investors that think the company is just a Ponzi scheme that takes investors money and gives it back to only a fraction of the investors as a profit, while many are left at a loss. Many companies also short the stock in an attempt to make a profit when the stock falls, and a month ago the CEO of the company was accused of shorting the stock himself. This is a big deal because the owner of a company should never be betting on a company to fail, especially his own. Could this be a quick pump and dump? Yes. I am very speculative about the company, and I think it is a scam. They are a knock-off tesla and want their own company to fail. Hindenburg is a large investment firm that wrote a 67-page essay explaining why this company is worthless.
Nikola slides 6% on SEC probe over short-seller claims the company misled investors through 'intricate fraud' and 'deception' | Markets Insider

A recent shot of NKLA stock https://markets.businessinsider.com/news/stocks/nikola-shares-slump-after-sec-fraud-claim-probe-2020-9-1029590247

Maybe I will be proven wrong, but for now, I am more than cautious of this company and will be for a while. In the next few years, Nikola is supposed to produce real vehicles, but until then, they will e an absolute fraud. As always, thank you for reading another entry of “Too Much Tesla.” I don’t always want to focus on Tesla, so I hope this entry was interesting.

Tesla and Why I Like it so Much

Is it for status? Is it for luxury? Is it for saving the earth? Buying Tesla has many different reasons for different people. However, personally, Tesla to me means the future. The future of society is not flying cars or hovercraft, but instead, the future is self-driving. The luxury of having your own chauffeur without the driver. To me, Tesla is as innovative as the Model T. A life changing product that will revert the course of history. A reversion from doom and gloom to a society of clean energy and high-quality cars. 

Model S | Tesla

A Tesla Model S https://www.tesla.com/models

 

Not only do I admire the outlook of Tesla on the way it will alter the future of the driving world, but I admire Elon Musk. I would consider Elon Musk to be one of my heroes. Someone who dropped out of college, and became a billionaire. Not because of luck, but because of hard work. I admire hard work and strive every day to become as successful because of hard work. In my life have been given some great opportunities, but it is what you do with those opportunities that define you. Not only that, Elon Musk has given a lot of his money to charity and is known to be a good human being. More than anything I want to be a good person.

ANALYSIS - Tesla future models | Automotive Industry Analysis | just-auto

Tesla Roadster concept https://www.just-auto.com/analysis/analysis-tesla-future-models_id180915.aspx

 

Tesla not only gives me a chance to be a part of the future but a part of a revolution. A revolution of people fighting climate change, and doing good f0r the world. Is every Tesla owner a great person? No. But personally, does it inspire me to be a better person? Yes. Every time see another person driving a Tesla I feel a sense of respect towards that person and I don’t even know them. Call me crazy, but good people think alike.

 

This entry was more of a personal anecdote, but I think it needed to be known as to why I enjoy Tesla so much. Someone can say they ” just like cars. But for me? No. I admire the brand of cars. A company. CEO. Tesla is so much more than a car company to me and for that, they will always be my favorite. In a similar fashion, many older people will only purchase a Ford because it is “American made.”

 

As always, thanks for tuning in and we will see you next week for a new entry.

Tesla Cybertruck

Tesla never fails to keep us entertained. On November 21st, 2019, Elon Musk had introduced the Cybertruck. Tesla’s new utility vehicle that would hit the market sometime between 2021-2022. Musk announced the truck would come in three versions that were depended on the range of the vehicle. The three models will come in with the cheapest being the 250 miles range all the way up to 500 miles range per charge. The baseline price is within the range of fifty thousand dollars, and more expensive versions of the truck would be released in the future.

Tesla Cybertruck pickup truck's 12 coolest features - Business Insider

Concept of the Cybertruck https://www.businessinsider.com/tesla-cybertruck-pickup-trucks-coolest-features-2019-11

One look at the truck and it is clear to see why this is such an appealing truck too so many consumers. It’s futuristic, alien-like body and bulletproof design are online anything on the market. Much like every other product Tesla releases, they are revolutionary. Not in a sense that they are going to forever change the trucking industry, but in a way that makes heads turn because they are trying to do something so unique. The specs of the truck are also so appealing to consumers. Tesla writes on their website If there was something better, we’d use it. Help eliminate dents, damage, and long-term corrosion with a smooth monochrome exoskeleton that puts the shell on the outside of the car and provides you and your passenger’s maximum protection (Cybertruck via Tesla.com). Not only is the material some of the best in the industry, but the windows are enhanced with armored glass. However, the validity and strength of the armor are up for debate. This is due to the fact that in the announcement Musk threw a steel ball at the glass and it shattered, even though it was not supposed to. Maybe it is time to go back to the drawing board with that one.

Watch the Tesla Cybertruck's unbreakable glass, uh, break

Broken glass after demo during the unveiling. https://thenextweb.com/plugged/2019/11/22/watch-tesla-cybertruck-unbreakable-amored-glass-break/

 

Will the Cyberturck sell? Well with over 650,000 preorders the truck seems to be doing just fine before it even released. If I personally had the money I think I would make the investment without question. Owning a bulletproof truck is something to have just because its “badass” said Musk in an interview. This is another one of Tesla’s PR stunts to gain company attention and investor money. Whether the Cybertuck is apart of their longterm plans is something we will have to wait and see.

As always, thanks for reading.

Tesla Battery Day… What happened?

Tesla is notorious for building up the hype. The hype that gets fans of the company more than excited for an announcement, and most certainly gets investors throwing money at the stock. This is one reason why Tesla has been so successful. Another reason this build-up is always bigger than the one previous is that Tesla always delivers on their statements. That was true until this past week when they didn’t quite meet the expectations.

 

The Biggest Takeaway From Elon Musk's Tesla Battery Day | Marker

Musk at “Tesla Battery Day on September 21, 2020. https://marker.medium.com/what-everyone-got-wrong-about-elon-musks-battery-day-eebbd33734a0

 

Elon Musk has been exciting people over his numerous tweets and announcements that remind people that “battery day” was going to be a company altering day for Tesla. For example, tweets from Musk are subtle and do not give much description, but it is all his fans need to become ecstatic about a new announcement.  Tesla was rumored to announce their new “million-mile” battery but instead told the public about new manufacturing methods for their current batteries. In addition to new manufacturing methods, Musk and the company announced new mining methods to extract Lithium (the main component used in Tesla’s batteries) which would provide a lower cost for them. This announcement however came with limited cheers because Lithium mines are known to take 7-10 years to become fully operational. Compounding that fact, the third parties that are designated to start these mines have little funding and almost no leadership.

 

Tesla's New Lithium-Ion Patent Brings Company Closer to Promised 1  Million-Mile Battery

A real Tesla lithium battery used in their cars. https://www.forbes.com/sites/arielcohen/2020/12/30/teslas-new-lithium-ion-patent-brings-company-closer-to-promised-1-million-mile-battery/#7560ea8033e3

 

Tesla’s battery day came and went without any media attraction and a drop in stock price. The stock dropped almost 16% in the coming days but has since slowly rebounded. This drop is most likely due to the lack of excitement around the companies future. Optimism is still extremely high, but the vigorous, fast-paced news that Tesla produces has left the air. This could be good for the company, however. Tesla could become more stable in the news and not always rely on “the next big thing” to keep people interested. Tesla has built enough of a reputation that they can focus more on the little things like battery manufacturing and new mining methods instead of trying to gain attention with a cyber truck or other crazy products.

In my opinion, I like what Tesla did. They might very well have a million-mile battery being produced right now, but with more car companies turning to electric, they may not want to show their hand quite yet. If in the near future a rival company starts having real competition with Tesla, we could see the old marketing strategy make a return.

What’s a Gigafactory?

Every car manufacturer needs a place where they can store parts, house employees, and build their cars. For most companies, this is just a large warehouse with some machinery, offices, and some break rooms. However, as Elon Musk thinks, Tesla needed something more significant: the “Gigafactory.” The main idea behind the factory is to have a self-sustainable energy supply via solar cells. 

Giga factory

Model of Gigafactory in Nevada. https://www.tesla.com/gigafactory

 

The first Gigafactory was built in Sparks, Nevada, and required more than 1.9 million square feet of space to complete. Designed to have a net emission of zero, when completed, it will be the largest building in the world to do so. Tesla, as of now, has one factory in Freemont, California, but plans to have 3 Gigafactories by 2030. Note there is a difference between a regular factory and Gigafactory. Each Gigafactory is also designed to produce certain parts for each car. For example, the Gigafactory in Nevada produces the Model 3 and Powerwalls. 

The second Gigafactory is located in Buffalo, New York. Designed in the same way as its predecessor, the factory is a net emissions zero, 1.2 million square foot building. This factory alone has created almost 800 jobs and manufactures solar cells and solar panels. It was initially designed to produce steel but has since shifted its focus to electrical products. In the next ten years, the factory is estimated to create almost 10,000 jobs with zero emissions. 

 

ijo

Gigafactory during construction. https://www.pinterest.com/pin/477451997995429434/

 

Elon Musk also announced on the earnings call this past quarter that the next domestic Gigafactory would be built in Austin, Texas. Many different cities have made their case for the next Gigafactory because each factory brings prosperity for the home city. Not only that, but they also employ hundreds of people and have no negative side effects concerning pollution. The Gigafactory is just another reason why Tesla is going to be at the top of the automobile industry in the next few years. Many would argue that they already are! Gigafactories are like nothing any other car manufacturer has done before, and Elon Musk said in an interview they are already planning four more factories. In addition to the factories having net-zero emissions, they are on US soil, which provides more jobs and a sense of pride in many of the owners and employees of Tesla. 

Tesla can’t seem to miss with their cars, solar cells, and batteries. In addition to this, their factories are making noise in the eyes of investors, buyers, and everyday people. 

More Than Cars

When someone thinks of Ford, General Motors, or even Toyota, the first thing that comes to mind is cars. Motor vehicles are the marquee product for all of these companies and have been for a long time. Even though Tesla’s main product is the manufacturing of motor vehicles there is more than one reason why Tesla is the highest valued car company in the world.

Tesla makes more than just cars. They are an electric company named after the great Nikola Tesla, whose advancements in electric energy left such a mark in history that his name is now the face of one of the leading car manufacturers in the world. In addition to their cars, Tesla makes Solar Panels and Solar Roofs at one of the most competitive and affordable prices on the market.  It is also no secret that Elon Musk has proven to be one of the most successful CEO’s of this era. Still, his leadership and dedication to the company also prove valuable. Since Tesla’s inception in 2003, the company has produced millions of cars and even outsold expectations during the Coronavirus pandemic.

 

roof

Tesla Solar Roof pictured here. https://electrek.co/2020/06/11/tesla-cancelling-solar-roof-orders-after-years-deposits/

 

Tesla also specializes in the creation and innovation of self-driving technology. As a front runner in the industry, Tesla has been designing and tweaking its auto pilot. Even though it hasn’t been fully released yet, Elon Musk has stated before that they are making great strides towards a completely self-driven car and will be available by the end of this year. Safety features of the vehicle are also becoming industry standard as they are rated as Top Safety Pick Plus on the IHHS website.

 

Model 3

Tesla’s Model 3 earns an IHHS Top Safety Pick+ https://electrek.co/2020/06/11/tesla-cancelling-solar-roof-orders-after-years-deposits/

 

Tesla has also raised more capital in the stock market than any other car company before, and they are doing it in record fashion. With their stock-raising more than 700% in the last year, it is clear that investors, too, see that Tesla is more than just a car company, but instead a company that broadens its focus to many different products and technologies.

Personal anecdote: Tesla is going to be the future of the car industry. Electric cars provide more health and safety benefits to society, and once self-driving becomes standard in all Tesla’s, other car companies will inevitably have to follow suit. It could be fifteen years; it could be five, but sometime in the near future, all car manufacturers will have to change their strategy, and they will be playing a game of catch up against Tesla. It is also super interesting to see how young of a company Tesla is. In just seventeen short years, they already became the most valued car company in the world, beating companies like Ford, who have been in the game for over 100 years.

Tesla Breaks up The Pie

Tesla has announced that it will be initiating a 5:1 stock split on August 31. This comes to no surprise as at the time of the announcement the stock was currently nearing $1400 a share. With new trading platforms making trading easier for millennials and Gen Z’s alike, the company figured it would be in its best interest to make the stock cheaper for its potential investors. Although, at the same time many brokerages offer fractional shares which essentially eliminates the need for a split. Time will tell if this stock split is more of a marketing stunt than anything else.

Stock Price

Tesla’s monthly return via Robinhood.

What is a stock split?

Tesla is banking on the fact that the buying volume of its stock is low due to its exorbitant price value of almost $2200. At an all-time high analyst are scrambling to figure out if this is just a fad or a real evaluation of the company. This stock split will lower the price of an individual share by almost 80%. If the price remains stable until September one share will be worth an estimated $440. As for previous investors, they will be given more shares of the company based on their previous holdings. For example, if one investor had 100 shares of the company, on September 1st he will now have 500 shares.

As for Tesla’s volatility, it is almost impossible to tell how this change will affect its share price long term. Since the announcement, the share price has increased by $600. Is this just a quick grab at more money from young investors who suffer from FOMO? Probably. Will it work? Time will tell.

Tesla’s stock split also comes before its potential inclusion into the SP500. With its second-quarter being its 4th profitable quarter, Tesla has met all the requirements for the inclusion. This also may also be a partial reason for its upcoming stock split. Many index funds that track the SP500 are soon going to be buying large volumes of the stock and buying them fast. With a 5:1 split, there will be more tradable shares, and at a lower price. Personally, I am watching Tesla’s stock rise and fall from the sidelines, as are many investors.  The volatility of this stock may be higher than its returns this year, which is a turnoff for a lot of investors.

SP 500 Inclusion

Shown above is Tesla’s checklist for ts inclusion into the SP500. Now all 4 categories are marked as completed. https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2020/07/931/523/SP-tesla-3.png?ve=1&tl=1

Thanks for reading, and this has been the first entry of Too Much Tesla. Not only will this blog be covering recent market movements of Tesla’s stock, but this blog will also be keeping pace with its new car innovations, Giga Factories, software, Neuralink, and even Space X. Stay tuned for all the latest news about the future of cars, space, and software. Think Tesla!