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Short-Term TSLA Price Movements - 2015

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If Volkswagen goes bankrupt, let's hope they set aside enough money to handle the mess before filing. Bankruptcy seems like a logical solution, if the German government will permit it. The right type of situation could allow Tesla to buy a portion of Volkswagens assets for pennies on the dollar. Volkswagen could return, with the opportunity to start fresh, and perhaps focus on producing Electric Vehicles, in copperation with Tesla and others.

If it turns out the other automobile manufacturers were also involved, it's possible the German government might try to ensure this type of outcome. Fix the mess,do everything possible to make sure jobs aren't lost, and do everything possible to minimize any impact to the economy.

Volkswagen is a conglomerate of sort and the state of Lower Saxony owns 12.7% of Volkswagen Group's shares.

Fixing the problem while keeping the company together to generate a profit again later on is a better outcome than to file bankruptcy and rebuild the company. The brand has been tarnished really badly and best way is to regain some trust by fixing. Let's see how deep VW pocket book is.
 
Looks like Elon will be a busy boy....add on a possible meeting with Indian Prime Minister Modi in Fremont on the 26th/27th and the reveal on the 29th and Elon is in Ludicrous mode approaching maximum plaid. Looks like he might be chasing the sun on a plane Friday night from Tilburg to Fremont.

What Is India's Prime Minister Doing At A Tesla Factory? - Yahoo Finance

How timely is Elon's interview with Sigmar Gabriel tomorrow in light of the VW/clean Diesel scandal?

Here's more on the upcoming weekend visit by the Indian prime minister to Tesla Motors: Modi may seek solar battery fix at Tesla - Livemint
 
Is this the TSLA investment thread, or the thread for comical musings? Isn't there a separate thread to discuss the Volkswagen scandal?

In before the lock... Oh wait, wrong forum type. Hehehehe. Yes, there's a separate thread on it. But I believe some of these posts about VW is about Tesla takeover, which is far fetch idea. Or at least that's what I see from it.
 
Well at least Volkswagen is one of the manufacturers that announces monthly sales figures... October 1st/2nd isn't that far away, so we should see an effect of all this.

I expect to see Volkswagen take major sales hits across the board, not just their diesel models.

It's a good job car dealerships make an average of $1million in profit each year... now's the time to dip into those profits you piled up earlier, if you're a Volkswagen dealer.

As far as TSLA goes, I'm seeing support building up through the day. Hopefully we close back over $260.

i don't blame VW dealers. I don't think they had any part in this pollution fraud

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Fixing the problem while keeping the company together to generate a profit again later on is a better outcome than to file bankruptcy and rebuild the company. The brand has been tarnished really badly and best way is to regain some trust by fixing. Let's see how deep VW pocket book is.


What am I missing here? isn't the VW fix as simple as changing the firmware? Granted the MPG and HP will drop but emissions will be within requirement from EPA
 
i don't blame VW dealers. I don't think they had any part in this pollution fraud

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What am I missing here? isn't the VW fix as simple as changing the firmware? Granted the MPG and HP will drop but emissions will be within requirement from EPA

Not that easy. The engine is pouring out gases high above the EPA guidelines and a program is giving out false info.
 
Blackhawk wins Patriot Coal bankruptcy auction : Business

Late Monday, the company filed papers asking the bankruptcy court to allow it to end its obligation for its 969 non-union retirees, saying no potential buyer of its assets would agree to take on the cost.

"The debtors will lose the ability to fund their operating expenses, much less any other obligations such as retiree-related expenses, within a matter of weeks," Patriot said in court papers.
 
What am I missing here? isn't the VW fix as simple as changing the firmware? Granted the MPG and HP will drop but emissions will be within requirement from EPA

Not that easy. The engine is pouring out gases high above the EPA guidelines and a program is giving out false info.

Wait, are you saying that testing involves reading out what the car says and not actual tailpipe measurements??

If diesel fuel consumption is controlled similarly to how gasoline fuel consumption is controlled, a simple change to the fuel/air mapping is minimum requirement. This type of change would happen with an update to the ECU (e.g., firmware update).

As for modern day emissions testing, if emissions testing is similar to how gasoline cars are tested, it is done via OBD-II. Plug and play is all it takes and a computer will do a reading when the car is at idle.

Gosh, owning a Tesla car would bypass all this emissions test so quickly...
 
If this is true, this would be a further escalation of #dieselgate
EU polititian Sven Giegold chimes in and says there is proof German government new about this fraud at least since 28th of July this year and did not take action (link, google translate):
The federal government has long been known that automakers can use shutdown with emissions test, as it has used manipulative in the US Volkswagen. This is apparent from the response of the Federal Ministry of Transport to an inquiry by the Green from July 28, the possession of the newspaper"Welt".
And this use of a switch is not limited to diesel engines.
I don't know what to say anymore.
German car enthusiast says sorry for all that.
I just hope that people keep their faith in Tesla Motors and their vision.
 
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If this is true, this would be a further escalation of #dieselgate
EU polititian Sven Giegold chimes in and says there is proof German government new about this fraud at least since 28th of July this year and did not take action (link, google translate):

I don't know what to say anymore and what to expect of tomorrow.
It looks like German government now involved in this issue.
As a German I want to say sorry for all this, this is really bad.

Thanks, interesting. What is also quite interesting is that the German government, directly and through mutual funds and pension fund, are the largest owner of VW. Obviously they haven't traded on this advance information - it would be very suspicious if the goverment started selling off ownership in VW on no news :)
No, what I'm saying is they have a vested interested (major shareholder, VW creates a lot of jobs and is very important to the German economy) in keeping this down and out of the searchlight. For all we know there may have been very high up political discussions in the last 6 weeks, I'm thinking on the level of Merkel calling Obama, where the Germans may have hoped to silence the whole thing while the US likely in the end decided to let the EPA do it's thing on this.

On a related note: big public companies like VW must have contingency plans i.e. a pre-formed strategy of any way they could get out of a situation where the stock price tumbles uncontrollably for whatever reason with the least amount of damage. Like now, I think VW have several pre-considered options on the table, going private with parts of their business can be one, split up in smaller chunks and let one of them go bancrupt is another (think cutting off the arm with gangrene to let the rest of the body live).

On a second related note: I'm glad we're discussing #dieselgate over #foldgate :)
 
i don't blame VW dealers. I don't think they had any part in this pollution fraud

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What am I missing here? isn't the VW fix as simple as changing the firmware? Granted the MPG and HP will drop but emissions will be within requirement from EPA

I wouldn't blame dealers either. Can't group them all up. The big issue is VW was pushing these diesel's as clean vehicles knowing that they weren't. It's just malicious intent. In terms of just a firmware update, yes these are "just" firmware updates physically but it affects the performance of the car, which essentially misleads customers and that's the damage that is the tricky part here because it affects residual values. In addition, people actually bought these cars because they were "more efficient" and burned cleaner going the extra mile because there are less diesel stations in some instances and paying a little bit of a premium. This VW is going to have to deal with. There were reports on VW forums where customers brought their cars for the first firmware update and immediately saw a 10mpg drop from their normal driving. The VW Dealers gave some BS reason about Winter and Summer mix of fuel.... This is the big problem.

Then there's also the factor of residual values. Now you have all these owners who have to bring their cars in for a recall where the car will suffer in performance and efficiency. Not to mention, you just pissed off a loyal fan base and people will undoubtedly be selling their cars due to these implications.
 
With respect to short term price. What worries me a little is the P85 horsepower fiasco. In the end there is and will be a ton of pixels illuminated on who is technically right. But in the end it does not matter, as Tesla has alienated some of their earliest and most eager fans by a lack of communication, and lack of resolution to consumers who feel they have been misled. I really, really hope the same does not go for Model X launch (foldgate etc....which would result in cancellations).

I remember staring work at an Easter Seals Camp when I was younger, working with children with mental and or physical disabilities. Some of these children had severe disabilities and at the end of my first day, my head was spinning trying to keep everything straight. My buddy looked at me and said, `look after the kid in front of you, and everything else will take care of itself`. This piece of advice I have thought of often , and I hope Tesla follows it. Build a great car, and the rest will follow. (ignore marketing with gas savings, claims which may or may not be relevant.....etc). People support tesla as they want CHANGE from the status quo. If they want obfuscation of facts, or arguments based on what some consider misleading data...then we would go to a DEALERHSIP. Build a great car, and stop underestimating the consumer to make a great choice.
 
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