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Tesla Plunges On Downgrade, Potential Dilution, Video Of Car Fire
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.
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So which scientific great are we gonna dishonor next with burning cars to their name?
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?
booooooooooyaaaahhhhh
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...
Here's hoping no SpaceX Falcon-1 burnup!
Hopefully he shorted it before he lit it on fire.
At the beginning of the year the stock was at 34 bucks a share.
I see profit taking...
a bunch of convertible bonds converting,
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.
My brother, who knows a crapload about Lithium/Ion batteries, would agree with you. He refers to them as "an inherently unstable battery technology"
I'm no scientist, but doesn't a Tesla contain something along the lines of 32,000 Sony Vaio laptop batteries?
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.
LiFePo ?
You call THAT a car fire! The Ford Pinto. Now THAT was a car fire!
I'll second you pinto and raise you a vega, maybe a firebird.
Relax, enjoy a fire once in a while.
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!
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.
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.
+1 for the name
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.
ok good comment Mr. Sheen, now save me some of those leftover hookers.
why dont you ask all the employees of Fisker how the car fires of the Karma affected their company's reputation?
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.
Wonder if you can get arrested for yelling "fire!" in a crowded showroom.
That's becaue nothing (except nuclear) beats the energy density of fossil fuel (which is why batteries are such a poor source of energy).
From the youtube comments...
Hope they had their (Nomex) shorts on.
Mind-blowingly genius.
A Tesla burning?
Now that's Karma for you...
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.
Did Tesla get their batteries from Boeig?
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.
Boeing is the sound a dead cat makes when it bounces.
787 Dreamliners go Boing! Boing! Boing!
http://finance.yahoo.com/q/bc?s=TSLA+Basic+Chart&t=1y
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!!!!!!!!!
Must be an algo thing. I'll remember that.
so what if TSLA is imploding ? Dont be disheartened. Get some PCLN. It will near go down.
Didn't Tesla himself cause a bunch of big fires in his time? The name is actually perfect.
He was never directly linked to Tunguska, AFAIK.
It'll be Schrodinger.
Schrodinger's car. Only when you open the garage do you learn whether or not it will run.
I would prefer to see a video of Cramer on fire.
Any day of the week, just put a brainscan clipset on him...he's on fire much of the time...neural storm warnings
I would pay to see a video of Cramer on fire.
Wouldn't "on fire" imply Cramer is hitting it out of the park with his stock picks?
You mean Jim "I'm just trying to make you money while acting like an assclown" Cramer was wrong?
Lol it's a model s... Burn baby burn.
Maybe we should send some Teslas to Washington and hope they burn it to the ground also.
Members of the House and Senate should be forced to drive one of these!
Bold concept for a car. Hope they work through the problems.
Cramer...lol...there is no better contrarian indicator.
The Electric Short Lights-up Again
You guys sure?
Looked kinda like a Pinto to me....
That's Elon's Stock Losing its Ass!!!
Tesla....should have been named the 'Fire Marshall Bill'!
Bad for paint job ...
Who wants to chance this spread? https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1380744000000&chddm=1873&chls=IntervalBasedLine&cmpto=NASDAQ:NFLX&cmptdms=0&q=NASDAQ:TSLA&&fct=big&ei=3nZMUtDKFoSZ0QH2GQ
Everyone simply has to have one!
They're really, really hot right now.
"Tesla. Keepin' Firefighters busy for 10 years"
Just a glitch folks. Nothing to be alarmed about.
Just a vehicular flash wound...it's nothing!
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.
Check the flux capacitor, that'd be my guess
Pinto II
Fiero
Corsair
Model S
Great flaming rechargeables!!
That's a Tesla dude!!!
Hurry...arrest that man who Youtubed the fire. We don't need another embassy attacked.
Green transportation. Great for the environment. Totally.
Can't wait for one of the city bus versions goes up.
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.
Likely the fuel tank is up front. Duh.
Running moonshine?
I think the battery pack is spread around the whole car, it's pretty big. What else could possibly catch fire - no fuel obviously.
Electricity, metal, and water do not often mix well.
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
Or the plastic body panels.
Next
or the plastic body???
or the 95% plastic interior?
You see all that black smoke. That's plastic (derived from petroleum) burning my friend.
Such a green car.
My first thought too. Or perhaps the tires are burning and contributing to the black sooty smoke. Either way, not safe for roasting marshmallows.
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.
Not with proper fuses at key areas
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?
I think the driver spontaneously burst into flames after his car ran out of charge and he got passed by a Hyundai.
Or perhaps he got passed by an old Nash Rambler. http://www.youtube.com/watch?v=enqNl7tdLR4#t=50
See what happens when you drop your gold iPhone 5S on the batteries.
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.
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
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...
Thankfully the batteries didn't eject themselves 400 feet forward in response to hitting said object in road.
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#
In view of the video, perhaps that last article should have been headlined "global demand for lithium expected to ignite".
Using an obattery.
Car-B-Q!
Barack Cockstroker Motors, aka Tesla, has a higher market cap than Fiat!
Gracious Bernak!
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.
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.
Are Teslas on Ebay yet?
That fire damage will buff right out.
Clay bar will work wonders...
I'm pretty impartial on this, but how many traditional gasoline based vehicles haven't caught fire, just saying.
"....the fire is due to the car colliding with a large metal object in the middle of the road .."
yes - another tesla
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 .
Driver working on Michael Hasting's story.