This page has been archived and commenting is disabled.

Tesla Plunges On Downgrade, Potential Dilution, Video Of Car Fire

Tyler Durden's picture




 

Despite its position as a "cult" stock - capable of enduring anything (according to Cramer) - the holy grail of momentum stocks is under massive pressure today. Down 9% as we write, Tesla seems to be at the center of a quadruple whammy of retail investors realizing they have become unwitting bagholders to selling institutions, a Baird analyst's downgrade, a major potential dilution event as the firm's convertible note becomes 'convertible' and investors sell to take profits on their bond's huge gains, and an additional factor which may have led to the acceleration in the sell-off in the last hour or so, has been the emergence of an unverified YouTube video which purports to show a burning Tesla, although the firm's investor relations promptly responded, via CNBC, saying the fire is due to the car colliding with a large metal object in the middle of the road (of which roads tend to have quite many)... and burst in flames?

 

 

 

Cramer warned that despite many names' approaching overbought territory, a handful of "cult" stocks should continue their rally through the rest of the year, supported by a group of dedicated buyers with high expectations. One such company is Tesla Motors, he said. "That thing is such a cult, I don't want to get in front of a cult." He also listed Netflix, Ulta Salon, Lumber Liquidators, Yelp and Tractor Supply as having similar support.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 10/02/2013 - 15:31 | 4015091 Skateboarder
Skateboarder's picture

So which scientific great are we gonna dishonor next with burning cars to their name?

Wed, 10/02/2013 - 15:33 | 4015096 slaughterer
slaughterer's picture

Tesla imploding, had to happen at some point.  All those late momo monkey pumping for $200 just got Stolperized.   Elon, you going to tweet your way out of this burning man Model S?

Wed, 10/02/2013 - 15:35 | 4015115 smlbizman
smlbizman's picture

booooooooooyaaaahhhhh

Wed, 10/02/2013 - 15:53 | 4015218 hedgeless_horseman
hedgeless_horseman's picture

 

 

                              JACK (V.O.)
                 On a long enough time line, the
                 survival rate for everyone drops to
                 zero.

     Two TECHNICIANS lead Jack to the BURNT-OUT SHELL of a
     WRECKED AUTOMOBILE.  Jack sets down his briefcase, opens it
     and starts to make notes on a CLIPBOARDED FORM.

                             JACK (V.O.)
                 I'm a recall coordinator.  My job is
                 to apply the formula.  It's a story
                 problem.

                             TECHNICIAN #1
                 Here's where the infant went up in
                 flames.  Three points.

                             JACK (V.O.)
                 A new car built by my company leaves
                 somewhere traveling in a rain storm.
                 It catches on fire.

                             TECHNICIAN #2
                 The teenager's braces melted into the
                 backseat would make a good
                 "anti-smoking" ad.

                             JACK (V.O.)
                 The car burns to the ground with
                 everyone trapped inside.  Now: do we
                 initiate a recall?

                             TECHNICIAN #1
                 The father must've been huge.  See
                 how the fat burnt into the driver's
                 seat with his polyester shirt?  Very
                 "modern art."

                             JACK (V.O.)
                 Take the number of vehicles in the
                 field, (A), and multiply it by the
                 probable rate of failure, (B), then
                 multiply the result by the average
                 out-of-court settlement, (C).  A
                 times B times C equals X...

Wed, 10/02/2013 - 16:00 | 4015271 Ying-Yang
Ying-Yang's picture

Here's hoping no SpaceX Falcon-1 burnup!

Wed, 10/02/2013 - 16:31 | 4015446 quintago
quintago's picture

Hopefully he shorted it before he lit it on fire.

Wed, 10/02/2013 - 16:59 | 4015573 MillionDollarBogus_
MillionDollarBogus_'s picture

At the beginning of the year the stock was at 34 bucks a share.

I see profit taking...

Wed, 10/02/2013 - 17:03 | 4015589 patb
patb's picture

a bunch of convertible bonds converting,  

Wed, 10/02/2013 - 16:07 | 4015295 TruthInSunshine
TruthInSunshine's picture

If this was a Tesla, and it caught fire due to its battery technology, it will really reignite the debate regarding the wisdom of utilizing parallel racked laptop batteries as a safe & stable means of energy storage/conversion in electric vehicles.

I have no opinion as to the pros or cons of this choice of battery setup in electric vehicles versus competing technologies, but am merely remarking on how such an incident will fan the flames of such an inevitable debate.

Wed, 10/02/2013 - 16:59 | 4015564 NoDebt
NoDebt's picture

My brother, who knows a crapload about Lithium/Ion batteries, would agree with you.  He refers to them as "an inherently unstable battery technology"

Wed, 10/02/2013 - 17:18 | 4015634 TruthInSunshine
TruthInSunshine's picture

I'm no scientist, but doesn't a Tesla contain something along the lines of 32,000 Sony Vaio laptop batteries?

Wed, 10/02/2013 - 18:01 | 4015824 cougar_w
cougar_w's picture

Nothing wrong with LiFePo formulations. Stable as a brick. I don't understand why this is not used in electric cars the way it is in electric bicycles.

Wed, 10/02/2013 - 20:45 | 4016603 Cthonic
Cthonic's picture

LiFePo ?

Wed, 10/02/2013 - 16:18 | 4015338 Gringo Viejo
Gringo Viejo's picture

You call THAT a car fire! The Ford Pinto. Now THAT was a car fire!

Wed, 10/02/2013 - 16:21 | 4015385 Ruffcut
Ruffcut's picture

I'll second you pinto and raise you a vega, maybe a firebird.

Relax, enjoy a fire once in a while.

Wed, 10/02/2013 - 16:49 | 4015514 buttmint
buttmint's picture

Re: Ruffcut  LMAO!

 I love the Firebird tosser. That was a classque pos from Detoilet!

The Fiero! Now that was an aptly named piece of junk!

Thu, 10/03/2013 - 02:16 | 4017485 zhandax
zhandax's picture

Yeah, but it was a really fun piece of junk.  Like to fuck with people?  Pull a Hobie Cat down I95 with a Fiero.  They look relieved when they finally see the car.

Wed, 10/02/2013 - 16:27 | 4015410 Bangin7GramRocks
Bangin7GramRocks's picture

Is this the first car that ever caught on fire? No. Combustion engine cars catch on fire all the time. The stock may be way overpriced(kinda like the entire stock market), but why do you negative motherfuckers take such pride in hating something new? You probably laughed at the internet until it became a large part of your lives. 

Wed, 10/02/2013 - 16:33 | 4015457 12ToothAssassin
12ToothAssassin's picture

+1 for the name

Wed, 10/02/2013 - 19:55 | 4015547 TruthInSunshine
TruthInSunshine's picture

I can't see so good [squinting] - is that you Mr. Musk? Jimmy Cramer?

j/k, but seriously, unless TSLA has a literal & truly scientific ace card up its sleeve that it has yet to reveal, it's trading at circa-1999 pets.com type ridonkilousness - and I say this while LIKING what Musk has done in terms of advancing his cause.

*I also reflexively upvoted you just b/c of your username.

Wed, 10/02/2013 - 17:39 | 4015731 Redhotfill
Redhotfill's picture

ok good comment Mr. Sheen, now  save me some of those leftover hookers.

Wed, 10/02/2013 - 17:55 | 4015799 El Crusty
El Crusty's picture

why dont you ask all the employees of Fisker how the car fires of the Karma affected their company's reputation?

Thu, 10/03/2013 - 08:54 | 4017883 IndyPat
IndyPat's picture

I'll agree with you once the non-spontaneous claim is validated. I have my suspicions, having taking part in many charging related recalls on laptop batts. I have a hippy dippy neighbor with two Volts in his garage which is connected to mine. His POS cars cause my Wrangler Unlimited and wife's Lexus to go up in flames, there will be hell to pay. More so since I keep my PMs and guns in the Jeep, ever since that tragic bass boat event took out my first stash.

Wed, 10/02/2013 - 17:14 | 4015616 BandGap
BandGap's picture

Wonder if you can get arrested for yelling "fire!" in a crowded showroom.

Wed, 10/02/2013 - 19:33 | 4016235 John_Coltrane
John_Coltrane's picture

That's becaue nothing (except nuclear) beats the energy density of fossil fuel (which is why batteries are such a poor source of energy).

Wed, 10/02/2013 - 15:39 | 4015116 hedgeless_horseman
hedgeless_horseman's picture

 

 

From the youtube comments...

 

Benjamin Bjurstrom 27 minutes ago

Step 1) Buy a Tesla

Step 2) Short TSLA

Step 3) Set the? Tesla on fire

Step 4) ????

Step 5) PROFIT!!!

Hope they had their (Nomex) shorts on.

Wed, 10/02/2013 - 16:32 | 4015448 Scalaris
Scalaris's picture

Mind-blowingly genius.

 

Wed, 10/02/2013 - 15:34 | 4015117 Pool Shark
Pool Shark's picture

 

 

A Tesla burning?

Now that's Karma for you...

 

 

Wed, 10/02/2013 - 15:36 | 4015132 gjp
gjp's picture

Bouncing higher as we speak, courtesy of the 3:30 ramp, and the ZH effect, where any crowing from ZH about gold up or stocks down is met with immediate reversals.  It's uncanny really.

Wed, 10/02/2013 - 15:47 | 4015189 remain calm
remain calm's picture

Did Tesla get their batteries from Boeig?

Wed, 10/02/2013 - 16:31 | 4015429 Ruffcut
Ruffcut's picture

petty shur it come from the tru value harware, down the rode.

Bad batterys, we use for fireworks on the 7th of june, like always.

Wed, 10/02/2013 - 18:48 | 4016024 JuliaS
JuliaS's picture

Boeing is the sound a dead cat makes when it bounces.

Wed, 10/02/2013 - 19:56 | 4016344 TruthInSunshine
TruthInSunshine's picture

787 Dreamliners go Boing! Boing! Boing!

Wed, 10/02/2013 - 17:18 | 4015642 Herd Redirectio...
Herd Redirection Committee's picture

Its just looks like two completely different algorithms.  First, the straight line sell off algorithm, then the 'lets burn some shorts and return closer to VWAP' algorithm.  By the same market riggers?  No!?  NOOOOOOOOOOOO!!!!!!!!!

Wed, 10/02/2013 - 15:56 | 4015255 Downtoolong
Downtoolong's picture

Must be an algo thing. I'll remember that.

Wed, 10/02/2013 - 15:55 | 4015239 whatsinaname
whatsinaname's picture

so what if TSLA is imploding ? Dont be disheartened. Get some PCLN. It will near go down.

Wed, 10/02/2013 - 15:48 | 4015208 Gene Parmesan
Gene Parmesan's picture

Didn't Tesla himself cause a bunch of big fires in his time? The name is actually perfect.

Wed, 10/02/2013 - 17:20 | 4015646 Herd Redirectio...
Herd Redirection Committee's picture

He was never directly linked to Tunguska, AFAIK.

Wed, 10/02/2013 - 17:53 | 4015791 mickeyman
mickeyman's picture

It'll be Schrodinger. 

Schrodinger's car. Only when you open the garage do you learn whether or not it will run.

Wed, 10/02/2013 - 15:40 | 4015098 Grande Tetons
Grande Tetons's picture

I would prefer to see a video of Cramer on fire. 

Wed, 10/02/2013 - 15:46 | 4015190 onelight
onelight's picture

Any day of the week, just put a brainscan clipset on him...he's on fire much of the time...neural storm warnings

Wed, 10/02/2013 - 15:46 | 4015195 hedgeless_horseman
hedgeless_horseman's picture

 

 

I would pay to see a video of Cramer on fire.

Wed, 10/02/2013 - 16:23 | 4015392 Catflappo
Catflappo's picture

Wouldn't "on fire" imply Cramer is hitting it out of the park with his stock picks?

 

Wed, 10/02/2013 - 15:32 | 4015103 azzhatter
azzhatter's picture

You mean Jim "I'm just trying to make you money while acting like an assclown" Cramer was wrong?

Wed, 10/02/2013 - 15:33 | 4015104 Yen Cross
Yen Cross's picture

  Lol it's a model s... Burn baby burn.

Wed, 10/02/2013 - 15:32 | 4015106 Dazman
Dazman's picture

Maybe we should send some Teslas to Washington and hope they burn it to the ground also.

Wed, 10/02/2013 - 17:43 | 4015746 Redhotfill
Redhotfill's picture

Members of the House and Senate should be forced to drive one of these!

Wed, 10/02/2013 - 15:34 | 4015113 Ignatius
Ignatius's picture

Bold concept for a car.  Hope they work through the problems.

Wed, 10/02/2013 - 15:41 | 4015122 Dr. Engali
Dr. Engali's picture

Cramer...lol...there is no better contrarian indicator.

Wed, 10/02/2013 - 15:39 | 4015125 knukles
knukles's picture

The Electric Short Lights-up Again

 

You guys sure?
Looked kinda like a Pinto to me....

Wed, 10/02/2013 - 15:47 | 4015196 kralizec
kralizec's picture

That's Elon's Stock Losing its Ass!!!

Wed, 10/02/2013 - 15:37 | 4015129 SheepDog-One
SheepDog-One's picture

Tesla....should have been named the 'Fire Marshall Bill'!

Wed, 10/02/2013 - 15:43 | 4015162 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Bad for paint job ...

Wed, 10/02/2013 - 15:42 | 4015164 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Everyone simply has to have one!

They're really, really hot right now.

Wed, 10/02/2013 - 15:42 | 4015166 deejo
deejo's picture

"Tesla. Keepin' Firefighters busy for 10 years"

Wed, 10/02/2013 - 15:44 | 4015171 IndyPat
IndyPat's picture

Just a glitch folks. Nothing to be alarmed about.

Wed, 10/02/2013 - 15:47 | 4015203 kralizec
kralizec's picture

Just a vehicular flash wound...it's nothing!

Wed, 10/02/2013 - 15:43 | 4015173 Yen Cross
Yen Cross's picture

    Interestingly it looks like it was raining during the filmed immolation event. That would certainly be a drawback for Tesla if driving in the rain could result in a sudden flaming eruption.

Wed, 10/02/2013 - 15:46 | 4015185 IndyPat
IndyPat's picture

Check the flux capacitor, that'd be my guess

Wed, 10/02/2013 - 15:47 | 4015187 Spastica Rex
Spastica Rex's picture

Pinto II

Wed, 10/02/2013 - 16:18 | 4015373 superflex
superflex's picture

Fiero

Corsair

Model S

Wed, 10/02/2013 - 15:48 | 4015192 bagehot99
bagehot99's picture

Great flaming rechargeables!!

That's a Tesla dude!!!

Wed, 10/02/2013 - 15:48 | 4015205 The Proletariat
The Proletariat's picture

Hurry...arrest that man who Youtubed the fire.  We don't need another embassy attacked.

Wed, 10/02/2013 - 15:50 | 4015207 IndyPat
IndyPat's picture

Green transportation. Great for the environment. Totally.
Can't wait for one of the city bus versions goes up.

Wed, 10/02/2013 - 15:50 | 4015216 WhoMe
WhoMe's picture

Ugghhhh, isn't the trunk in the front and the battery pack in the back? So if the front is on fire it probably has nothing to do with the battery pack.

Wed, 10/02/2013 - 15:52 | 4015225 Spastica Rex
Spastica Rex's picture

Likely the fuel tank is up front. Duh.

Wed, 10/02/2013 - 15:55 | 4015234 Metalredneck
Metalredneck's picture

Running moonshine?

Wed, 10/02/2013 - 15:54 | 4015237 gjp
gjp's picture

I think the battery pack is spread around the whole car, it's pretty big.  What else could possibly catch fire - no fuel obviously.

Wed, 10/02/2013 - 16:07 | 4015303 Patriot Eke
Patriot Eke's picture

Electricity, metal, and water do not often mix well.

Wed, 10/02/2013 - 16:14 | 4015344 gjp
gjp's picture

but there's nothing in wiring or motor to fuel an ongoing fire like that once the initial spark is through - the only thing that could fuel a fire like that would be the lithium

Wed, 10/02/2013 - 16:23 | 4015399 superflex
superflex's picture

Or the plastic body panels. 

Next

Wed, 10/02/2013 - 16:24 | 4015401 g speed
g speed's picture

or the plastic body???

Wed, 10/02/2013 - 17:58 | 4015813 El Crusty
El Crusty's picture

or the 95% plastic interior?

Wed, 10/02/2013 - 16:26 | 4015408 superflex
superflex's picture

You see all that black smoke.  That's plastic (derived from petroleum) burning my friend.

Such a green car.

Wed, 10/02/2013 - 17:21 | 4015652 GeezerGeek
GeezerGeek's picture

My first thought too. Or perhaps the tires are burning and contributing to the black sooty smoke. Either way, not safe for roasting marshmallows.

Wed, 10/02/2013 - 15:56 | 4015254 superflex
superflex's picture

Ugggghhh, aren't the electric drive motors for the FRONT WHEELS connected to the batteries?

A battery short can be transmitted to any portion of the electrical system.

Wed, 10/02/2013 - 17:07 | 4015599 TaperProof
TaperProof's picture

Not with proper fuses at key areas

Wed, 10/02/2013 - 15:55 | 4015241 Atomizer
Atomizer's picture

The four door model stood to compete with other stiff 30 mile radius electric stronghold competitors. Lack of refueling stations down long US highways has caught up to imaginary central planning concepts. Compound Obama closing down coal plants, the recipe for failure is written on the wall. 

 

 FirstEnergy Closing Coal Plants, But Obama Not to Blame

http://www.environmentalleader.com/2013/09/18/firstenergy-closing-coal-plants-but-obama-not-to-blame/

Wonder if this above news rag is part of non-essential government shutdown?

Wed, 10/02/2013 - 16:01 | 4015276 Downtoolong
Downtoolong's picture

I think the driver spontaneously burst into flames after his car ran out of charge and he got passed by a Hyundai.

Wed, 10/02/2013 - 17:25 | 4015664 GeezerGeek
GeezerGeek's picture

Or perhaps he got passed by an old Nash Rambler. http://www.youtube.com/watch?v=enqNl7tdLR4#t=50

Wed, 10/02/2013 - 16:02 | 4015278 superflex
superflex's picture

See what happens when you drop your gold iPhone 5S on the batteries.

 

Wed, 10/02/2013 - 16:07 | 4015296 NOTaREALmerican
NOTaREALmerican's picture

Re:  I don't want to get in front of a cult.

I respect Cramer for this comment.   The "market" is all about pathological optimism, which most humans are.

Wed, 10/02/2013 - 16:11 | 4015332 stant
stant's picture

the brick-lin of our time. or a break thru in external combustion engine cause by the owners misfortune of having a famous last name -- ie snowden

Wed, 10/02/2013 - 16:14 | 4015336 Bryan
Bryan's picture

What cracked me up is Tesla's immediate response (to CNBC no less?):  "saying the fire is due to the car colliding with a large metal object in the middle of the road."  hahaha.... what large metal object in the road do you see in that video?  Me either.  And does the front of the car seem crushed or otherwise bent (other than shooting flames)?  The driver was probably turning right at the intersection, turned on the turn signal, and a signal bulb went out and overloaded the circuit...  but you got to spin it, just spin it --- and spin it good...

Wed, 10/02/2013 - 18:11 | 4015871 Dave Thomas
Dave Thomas's picture

Thankfully the batteries didn't eject themselves 400 feet forward in response to hitting said object in road.

Wed, 10/02/2013 - 16:13 | 4015342 Sufiy
Sufiy's picture

Nothing grows to the sky, but do not miss the megatrend here and why China is scooping all lithium they can get now:


Ganfeng Lithium Co. Ltd. Exercises Option On International Lithium Corp.'s Blackstairs Lithium Project, Ireland 

http://sufiy.blogspot.co.uk/2013/10/ganfeng-lithium-co-ltd-exercises-option.html#


Global demand for lithium expected to rise significantly


  Euro Pacific Canada has produced the very interesting report Lithium Industry - A Strategic Energy Metal, we can expect now the push of Lithium Investment story into the market place on the back of Tesla Model S success in the market place. International Lithium is mentioned as well with its strategic partner from China Ganfeng Lithium in the report. http://sufiy.blogspot.co.uk/2013/08/global-demand-for-lithium-expected-to.html#

Wed, 10/02/2013 - 17:32 | 4015700 GeezerGeek
GeezerGeek's picture

In view of the video, perhaps that last article should have been headlined "global demand for lithium expected to ignite".

Wed, 10/02/2013 - 16:16 | 4015359 wisehiney
wisehiney's picture

Using an obattery.

Wed, 10/02/2013 - 16:24 | 4015397 soopy
soopy's picture

Car-B-Q!

Wed, 10/02/2013 - 16:41 | 4015494 syntaxterror
syntaxterror's picture

Barack Cockstroker Motors, aka Tesla, has a higher market cap than Fiat!

Gracious Bernak!

Wed, 10/02/2013 - 17:02 | 4015583 TaperProof
TaperProof's picture

Goldman sachs torched a Model S, had TSLA downgraded and now they are buying up shares!   Seriously, $100k to torch a car and claim a defect, chump change compared to money that could be made.

Wed, 10/02/2013 - 18:13 | 4015867 Diogenes
Diogenes's picture

They will make money on the fire when they collect the insurance. What they make on the stock is gravy.

How about this for a totally unfounded conspiracy theory. Bankster tires of his Tesla. Finds he is underwater on the payments (means if he sells it or trades it, he won't get as much as he owes on it).

So he torches it for the insurance after shorting the stock, covers, and buys more for the pop up. By the end of the day he is rid of a car he doesn't want and is up a few hundred thousand dollars.

Wed, 10/02/2013 - 17:18 | 4015636 Never One Roach
Never One Roach's picture

Are Teslas on Ebay yet?

Wed, 10/02/2013 - 18:17 | 4015895 Yancey Ward
Yancey Ward's picture

That fire damage will buff right out.

Wed, 10/02/2013 - 18:27 | 4015942 Moe Howard
Moe Howard's picture

Clay bar will work wonders...

Wed, 10/02/2013 - 18:50 | 4016037 Cryogenic
Cryogenic's picture

I'm pretty impartial on this, but how many traditional gasoline based vehicles haven't caught fire, just saying.

Wed, 10/02/2013 - 21:12 | 4016697 tony bonn
tony bonn's picture

"....the fire is due to the car colliding with a large metal object in the middle of the road .."

yes - another tesla

Wed, 10/02/2013 - 22:05 | 4016922 highwaytoserfdom
highwaytoserfdom's picture

13,000 per car carbon credit?    Not only accounting but now comes the scientific question was the fire figured in carbon footprint?    NICE BIT OF IRONY.     The way this thing has been pumped and backed the real name should have been EDISON  JP Morgan, or Westinghouse theft from real Tesla genius . 

Wed, 10/02/2013 - 22:22 | 4016987 highwaytoserfdom
highwaytoserfdom's picture

Driver working on Michael Hasting's story.

Do NOT follow this link or you will be banned from the site!