Attorney at Law
Contributor's Links: IPO-Law

I am a lawyer and accountant who's devoted over three decades to advising clients on complex corporate finance, disclosure and reporting, and corporate governance issues. I've held board seats and executive suite positions in the mining, oil and gas and battery industries, and served as ... more

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The Regulatory Roaches In Tesla’s ZEV Credit Soup
While last Wednesday’s article described a potential ZEV and GHG banquet for Tesla longs in Q2 and Q4, my discovery of the pending EPA-NHTSA rulemaking is the gustatory equivalent of roaches in the soup.
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Is Tesla Counting On A Billion Dollar Regulatory Credit Bonanza?
Since inception, Tesla has generated over $1.4 billion in incremental revenue from sales of ZEV and GHG Credits.
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E Tesla’s Cobalt Blues; Growth Fallacies And Supply Chain Risque Majeure
Without rock-solid battery material supply chains, Tesla’s gigafactory is a $5 billion boondoggle with no alternative utility. Pretending that precarious cobalt supply chains are a non-issue is irresponsible.
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E Tesla’s Cobalt Blues; Spin, Fake News Or Deception?
Tesla is very concerned that cobalt will become an insurmountable barrier to growth. Institutional investors are becoming increasingly unwilling to feed Tesla’s insatiable appetite for capital.
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A Day Will Come When Lithium-Ion Battery Recycling Is Practical, But It Is Not This Day
Over the last five years, dozens of companies have launched stationary battery systems for residential and commercial use. While the hype level has been high, the market’s response has been tepid if not cool.
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Comments

Latest Comments
Is Tesla Counting On A Billion Dollar Regulatory Credit Bonanza?
2 months ago

I think the ZEV Credits are a scam because the number of credits is determined by a formula that multiplies the range by.01 and adds half a credit. So an EV with a 50 mile range gets 1 credit and an EV with a 300 mile range gets 3.5 credits.

Since the average Tesla owner drives his car 32 miles per day or 11,700 miles per year, just like every other driver, a 300 mile EV offers no more environmental benefit than a 50 mile EV.

I guess nobody taught the regulators in California to think about whether their rules actually support their goals.

In this article: TSLA
Is Tesla Counting On A Billion Dollar Regulatory Credit Bonanza?
2 months ago

ZEV and GHG Credits are not "Tax Credits" and nothing in my work suggests otherwise. They're created by regulatory edict and represent an unjustified fiscal plunder of competitors who must buy credits from sellers like Tesla or pay heavy fines to regulators.

I guess one could characterize the credits as an indirect rape of the taxpayer since the regulators would collect fines if the credits were not tradable, but that's a bit of a stretch.

In this article: TSLA
Tesla’s Cobalt Blues; Growth Fallacies And Supply Chain Risque Majeure
4 months ago

I think the most likely explanation is pressure from institutions that want out but can’t sell into the market without crushing the price because they own so much stock.

In a going private scenario XYZ and Musk could each say “we loved the company but our policies don’t let us own illiquid securities. So we’re reluctantly taking the cash.

In this article: TSLA
Tesla’s Cobalt Blues; Growth Fallacies And Supply Chain Risque Majeure
4 months ago

In a March 2016 article I referred to the cobalt cliff as the biggest Oops in the history of supply chain management.

miningpundits.com/.../ev-batteries-and-the-cobalt-cliff-the-biggest-oops-in-the-history-of-supply-chain-management/

In this article: TSLA
Tesla’s Cobalt Blues; Growth Fallacies And Supply Chain Risque Majeure
4 months ago

If its any comfort I'm baffled too.

In this article: TSLA
Tesla’s Cobalt Blues; Spin, Fake News Or Deception?
4 months ago

It should also be a ton of fun for individual stockholders who hold Tesla shares in margin accounts and won't be able to use private fund shares as collateral.

In this article: TSLA
Tesla’s Cobalt Blues; Spin, Fake News Or Deception?
4 months ago

It's a fascinating circus to watch. I have no idea how Mr. Musk thinks he can fund a going private transaction when most institutions can't own shares in companies with limited liquidity, but I've been surprised several times over the course of my career.

In this article: TSLA
Tesla’s Cobalt Blues; Spin, Fake News Or Deception?
4 months ago

My next article is tentatively titled "Tesla’s Cobalt Blues; Growth Fallacies and Supply Chain Risque Majeure." I hope to habit it ready for publication tomorrow morning.

In this article: TSLA
Tesla’s Cobalt Blues; Spin, Fake News Or Deception?
4 months ago

There were no credible emerging battery technologies when I started blogging 10 years ago and there are no credible emerging battery technologies today. In the battery industry it takes a decade for an innovation to go from Eureka! to first commercial product, another decade for an innovation to go from first commercial product to performance optimized product and yet another decade to go from performance optimized product to cost optimized product.

I've been reading holy grail stories on a regular basis for the past decade. None of them have delivered on the bold promises.

In this article: TSLA
Tesla’s Cobalt Blues; Spin, Fake News Or Deception?
4 months ago

Danny, would you classify it as spin if one of your co-workers took credit for your projects as well as his own?

In this article: TSLA
1 to 10 of 13 comments
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AXPW AXION POWER INTL INC
ENS EnerSys
GE General Electric Company
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund
INTC Intel Corporation
JCI Johnson Controls Inc.
KCG Knight Capital Group Inc.
MXWL Maxwell Technologies, Inc.
NSC Norfolk Southern Corporation
TM Toyota Motor Corporation
TSLA Tesla Motors Inc.
USO United States Oil Fund, LP
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