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Tesla Could Start Making Cars in Mexico Next Year, Governor Says

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Tesla corporation may start manufacturing cars next year in Mexico, with the electric vehicle manufacturer near to receiving final approvals enabling factory development to start in Nuevo Leon, adjacent to the US-Mexico boundary, the governor of the state stated on Monday.

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Image Source: mexico-now.com

“They are waiting for the final permits … once that’s done, they can start, hopefully, this very month, in March,” Nuevo Leon Governor Samuel Garcia said in an interview.

“I think by next year, in 2024, there will be the first autos.”

Source: reuters.com

Also Read: Tesla’s ‘Master Plan’ Fails to Impress Investors: What Went Wrong?

A request for clarification was not promptly returned by the firm.

 Elon Musk, CEO of Tesla, officially confirmed the financing the other week, asserting the Austin,  company based in Texas had chosen Mexico to build its next “gigafactory,” with the goal of manufacturing a “next-generation vehicle.” 

Also Read: Germany planning to ban Huawei, ZTE from parts of 5G networks

Mexican officials have stated that the manufacturing company will be the world’s largest for producing electric vehicles, with an investment of 5 billion dollars. 

Garcia stated that future stages of the plant could include the manufacture of parts such as chips & batteries.

“That’s why they bought a very large plot of land,” he added.

Source: reuters.com

According to the city politician, the location in Santa Catarina, close to the state capital of Monterrey, extends so many thousand acres.

Garcia stated that the funding would act as an “anchor” hoping to attract Tesla distributors and that the approval granted after the latter showed concerns about water scarcity, sent a positive signal to other potential investors. to Tesla Andres Manuel Lopez Obrador who is the President of Mexico. 

“It’s like a kind of guide, that when they want to come set up here, it’s very important they follow the law,” he said, noting he had sent Lopez Obrador technical memos about the state’s industrial water supply.

“The president, by authorizing and backing Tesla, sent a message to the world that they should come to Mexico.”

Source: reuters.com

Also Read: Taiwan’s TSMC to recruit 6,000 engineers in 2023

It is anticipated that by 2025, 20 percent of all emerging world car sales would be electric, increasing to 40 percent by 2030. As per investment bank UBS, nearly all cars worldwide sales will be electric by 2040. According to a Thomson Reuters study, even if all sales of new cars are electric by 2040, half of the cars on the roads will still be fueled by gasoline or diesel.

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Tesla’s ‘Master Plan’ Fails to Impress Investors: What Went Wrong?

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On Thursday, Tesla’s stock dropped about 7% after CEO Elon Musk and his team’s nearly four-hour talk fell short of the expectations of investors hoping to learn more about a new, reasonably priced electric car.

At Tesla’s investor day on Wednesday, Musk and more than a dozen execs unveiled brand-new plans to slash assembly costs in half, invest in a new factory in Mexico, and talk about the business’s innovation in operations management.

master plan
Image Source: economictimes.indiatimes.com

The EV manufacturer’s “Master Plan 3” was unveiled at the event, but Musk provided few details about the ideas’ timelines or any potential new Tesla products. Merlin Investor’s founder Guido Petrelli noted, “The biggest surprise coming out of Tesla investor day is that there wasn’t a surprise.”

Also Read: Tesla is getting cheaper. Is it a good move by Elon Musk?

Musk stated that Tesla will construct its upcoming auto plant in Mexico, close to Monterrey, but he didn’t offer any additional information besides the fact that the next-generation vehicle will be produced there.

Tesla’s senior vice president of powertrain and energy engineering, Drew Baglino, verified that construction on the company’s lithium refinery in Corpus Christi, Texas, has begun.

Musk claimed that AI makes him anxious and that a regulatory body is necessary to ensure that this “quite hazardous technology” serves the greater good.

The valuation of Tesla’s shares, which had decreased by roughly two-thirds in 2022, has increased by over 60% this year. “The markets were primed for a big announcement, perhaps on something like a more affordable new model. It may just have been a case of failing to live up to the hype”, AJ Bell’s investment director, Russ Mould, said.

In the past, Tesla events have made waves online, with Musk’s dance moves at the company’s Berlin plant opening in 2022 and an occasion in China in 2020 getting viral on social media. STMicroelectronics and Wolfspeed Inc., two suppliers and manufacturers of semiconductors, were affected by the company’s strategy to use 75% fewer silicon carbide vehicles while maintaining the performance and efficiency of the vehicles. In particular, STMicro will be negatively impacted by the reduction strategy, according to brokerage Equita.

In a move that mirrors the evolution in mobile phone billing, the business also intends to provide limitless overnight home charging in Texas for $30 per month. The company also praised its growing capacity for setting up production facilities rapidly.

The Corpus Christi lithium plant hopes to begin production within a year. Again, Tesla confirmed that the Cybertruck would be released this year, with mass manufacturing beginning in 2024.

Also Read: Elon Musk sells another $3.58 billion of Tesla shares

The US electric vehicle marketplace leader’s transformation from a niche player to a well-known automaker is the foundation of the new corporate strategy. Tesla released its two prior strategic plans in 2006 and 2016.

More than ten years ago, Musk released his first Master Plan, which outlined Tesla’s go-to-market plan of developing an electric sports car first, followed by a line of more affordable vehicles. With the Roadster, the Model S, and finally the Model 3 sedan—its least expensive model with a starting price of about $43,000—the business has carried out this vision.

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Elon Musk to unveil Tesla’s ‘Master Plan 3.’ What to expect for us?

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Elon Musk, the CEO of Tesla, said on Twitter on Wednesday that he will unveil the eagerly anticipated Master Plan 3 on March 1 at the company’s investor day.

Tesla announced it will discuss its next-generation vehicle platforms at the forthcoming investor day, which will be held at its gigafactory in Texas. Elon Musk has said that these platforms would result in a car that costs around half as much as Tesla’s current vehicle underpinnings. The session will be broadcasted live.

Elon Musk
Image Source: hypebeast.com

The company said that some retail and institutional investors will be welcome to attend in person. According to the company, investors will be able to tour its manufacturing facility and speak with members of the leadership team about issues such as the company’s long-term expansion goals, its generation 3 platform, and capital allocation.

Also Read: Tesla is getting cheaper. Is it a good move by Elon Musk?

Musk originally made vague promises to increase Tesla operations to “extreme size” in his Master Plan 3 hints from last March. He also touched on issues like AI and said that his other companies, SpaceX and The Boring Company, would be a part of this next phase of the plan.

On Wednesday, there was a new update. He tweeted, “Master Plan 3, the path to a fully sustainable energy future for Earth will be presented on March 1.”

In 2006, Musk published a blog entry on Tesla’s website explaining what he referred to as the Master Plan. The four-step approach began with the development of a high-priced, low-volume vehicle, and then used the proceeds to fund the creation of a medium-volume, lower-priced car.

An affordable, high-volume car would be produced with the money made from the medium-volume car. The plan concluded with the phrase “provide solar power.”

Part two, or Part Deux, was introduced in 2016 with the goal to “create stunning solar roofs with seamlessly integrated battery storage,” expand Tesla’s EV product line to include all key market segments, and provide self-driving technology that is ten times safer than manual.

Also Read: Why is Meta shutting down Echo VR?

The plan also claimed that owners will be able to use ride-sharing to leverage self-driving technology and profit from their unused vehicles. In part two, Tesla did not check off all the boxes. The Cybertruck, which is apparently a part of the strategy to extend the EV line of products, has not yet been released.

Despite the branding, its advanced driver-aid technology does not drive itself, so owners cannot convert their cars into money-making robot axis. Musk appears to be prepared to continue with Part 3 anyway.

Last year, Tesla shares experienced their worst yearly performance as a result of Musk selling Tesla shares to pay for his acquisition of Twitter and other shareholders losing faith in his commitment to the automaker, whose sales growth fell short of expectations.

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Tesla is getting cheaper. Is it a good move by Elon Musk?

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Following a series of price cuts last week in Asia, Tesla reduced prices across the US, Europe, the Middle East, and Africa. Analysts viewed this move as a direct jab at both its smaller rivals who have been bleeding money and the traditional automakers who are hurriedly ramping up their production of electric vehicles.

Tesla
Image Source: reuters.com

According to adjustments made to the pricing of vehicle listings on its website on Thursday, the EV company has lowered costs on some of its popular models, such as the Model Y SUV and Model 3, by close to 20% across the USA and Europe. Even while the cars are still rather pricey, the premium pricing has significantly decreased.

Additionally, it’s a hint that Tesla is defending itself after months of gradually raising the prices of its cars. Price reductions follow the company’s failure to meet market expectations for deliveries last year, which coincided with an economic slump that reduced its market valuation from a peak of $1 trillion to less than $400 billion.

Customers from the United States and France may benefit from the federal tax credits and discounts offered in each nation for specific electric vehicle purchases.

Also Read: What Does Twitter’s 200 Million User Email Leak Actually Mean?

Before a $7,500 federal tax credit became available for several electric vehicles on January 1, those price reductions—which might reach as high as 30%—were already in place. Tesla also reduced the price of its Model S sedan and premium crossover SUV in the US.

Without identifying which costs were decreased, a spokeswoman for Tesla Germany claimed that cheaper price inflation was also a contributing element in price reductions in its top European market.

Tesla reduced the cost of the Model 3 and the Model Y in Germany by anywhere between 1% and approximately 17%. The most popular Model Y will now cost 44,890 euros ($48,499), which is a decrease of 9,100 euros.

Additionally, it brought down costs in Austria, Switzerland, and France. Customers in France purchasing the Model 3 for 44,990 euros will now receive a further discount thanks to a 5,000 euro government subsidy on an electric vehicle programme with a 47,000 euro threshold.

Since taking over Twitter, Musk has progressively expressed his displeasure with the Fed’s strong interest rate hike strategy to drive inflation down slightly to its objective of 2% on the network.

Also Read: Why Are US States Banning TikTok from official devices?

Tesla has suffered because of the increase in interest rates. Its stock lost favour with investors for the same causes that tech stocks as a whole are down; speculative businesses that gamble on the future are currently less enticing to investors than safe-haven value assets like commodities.

Since taking over Twitter, Musk has progressively expressed his displeasure with the Fed’s strong interest rate hike strategy to drive inflation down slightly to its objective of 2% on the network.

Tesla has suffered because of the increase in interest rates. Its stock lost favour with investors for the same causes that tech stocks as a whole are down; speculative businesses that gamble on the future are currently less enticing to investors than safe-haven value assets like commodities.

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Elon Musk sells another $3.58 billion of Tesla shares

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Tesla CEO Elon Musk publicly released one other 3.6 billion USD in stock purchases on Wednesday, bringing his combined score this year to nearly 40 billion USD and upsetting investors since the firm’s shares slumped to two-year lows.

According to a US securities filing, he sold 22 million shares in the world’s most profitable automaker over three days, from Monday to Wednesday.

Tesla
Image Source: foxbusiness.com

This is the second large stock sale he has made since his 44 billion USD acquisition of Twitter in October. It’s unclear whether the purchases are linked to the Twitter purchase, but they irritate investors who believe he’s shifting his attention and resources away from Tesla.

“It doesn’t put a lot of confidence in the business, or speak volumes for where his attention is at,” said Tony Sycamore, an analyst at brokerage IG Markets, where Tesla is a popular stock among small-time investors.

“It’s not a good situation. I’ve spoken to a lot of investors who have Tesla shares and they’re absolutely furious at Elon.”

Source: deccanherald.com

Tesla did not respond immediately to a Reuters request seeking comment, and Musk did not respond to an email sent outside of business hours. According to Refinitiv data, Musk’s 13.4 percent stake in Tesla is down from around 17 percent a year ago.

Read More: Elon Musk’s Twitter Dissolves Trust And Safety Council

Tesla’s stock price has gotten halved this year, trailing both automobile manufacturers and the wider tech-heavy Nasdaq, which is down approximately 30 percent in the present year. Musk’s overall sale over the last year is worth nearly $40 billion.

“It will start to be tiring for investors,” said Tareck Horchani, head of the prime brokerage dealing at Maybank Securities in Singapore.

Source: deccanherald.com

Musk’s fortune, which is mostly invested in Tesla stock, has fallen in value this year, and he temporarily lost his label as the world’s wealthiest person last week, as per Forbes, when he was defeated by Bernard Arnault, CEO of Louis Vuitton.

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Elon Musk says in court he doesn’t want to be CEO of any company, tries to walk back SEC insults

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Elon Musk stated in court on Wednesday that he doesn’t desire to lead any company as a CEO.Musk made the casual remark while responding to queries from attorneys for Tesla. He stated, “ I frankly don’t want to be the CEO of any company”.

elon musk
Image Source: businessinsider.in

Judge Kathaleen St. J. McCormick of the Delaware Chancery Court is hearing testimony in a case to decide whether Musk, the richest man in the world, should be required to surrender stock options granted as part of his compensation package to Tesla.

The trial, which began on Monday, will examine whether Tesla’s board acted properly when it authorized Musk’s compensation package, which, at the current share price, is currently estimated to be worth $52 billion. It will also examine if Elon had any undue influence on the decision.

Richard J. Tornetta, a shareholder, has filed a lawsuit against Musk and Tesla, claiming that the CEO’s salary was exorbitant and that the Tesla board’s approval of it constituted a violation of its fiduciary obligations. According to Tornetta, the board gave a part-time boss the biggest remuneration package in the world.

Read More: Elon Musk publicly fires Twitter engineers who call him out online

Attorneys for the plaintiffs questioned Musk about previous taunts he directed at the Securities and Exchange Commission and whether it was a good idea for him to have a hostile demeanor with regulators. “SEC, three letter acronym, middle word is Elon’s” Musk wrote in a tweet on July 2, 2020, when Tesla share price was experiencing a sharp rise.

Many people perceived the message to be filthy in nature and to be a serious insult to the regulating agency. Attorneys questioned Musk about his tweet in the Delaware court, and Musk said that it had been widely misinterpreted. Although the tweet was “interpreted differently,” Tesla CEO claimed in court that he intended the initials to signify “Save Elon’s Company.”

Elon Musk stated in court, “In general, I think the mission of the SEC is good but the question is whether that mission is being executed well. In some cases I think it is not. The SEC fails to investigate things that they should and places far too much attention on things that are not relevant.

The recent FTX thing I think is an example of that. Why was there no attention given to FTX? Investors lost billions. Yet the SEC continues to hound me despite shareholders being greatly rewarded. This makes no sense.”

When Musk claimed in tweets in 2018, that he was considering taking Tesla private at $420 per share and had “funding secured,” the SEC filed charges against Tesla and Elon Musk for making “false and misleading” assertions to shareholders. Following Musk’s tweets, the value of Tesla shares increased by more than 6%, and trading was suspended the same day.

For several weeks following the incident, Tesla’s share prices were volatile. In a settlement deal, Tesla and Musk stipulated that Musk would forfeit his position as chairman of Tesla for three years, pay a $20 million penalty, and refrain from denying the SEC’s claims or claiming innocence.

Musk and Tesla also agreed to have the CEO’s tweets reviewed by a securities attorney before publication if they contained important information about the company that would affect the value of Tesla’s stock.

The attorneys for Tornetta questioned Musk on whether he had a securities attorney evaluate all of his tweets regarding Tesla and why he had maintained maintaining his innocence, even in press appearances.

Musk appeared to admit that he doesn’t have a lawyer first review all of his tweets on Tesla. He stated, “The consent decree was made under duress. An agreement made under duress is not valid, as a foundation of law.”