AD #2855 – Tesla’s Shares Near $1,000; Nikola Has More Value Than Ford; Updated Crosstrek Adds New Sport Trim

June 10th, 2020 at 11:37am

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Listen to “AD #2855 – Tesla's Shares Near $1,000; Nikola Has More Value Than Ford; Updated Crosstrek Adds New Sport Trim” on Spreaker.

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Runtime: 9:18

0:07 Infighting Leads to VW CEO’s Replacement
0:58 Tesla’s Stock Nears $1,000 a Share
1:25 Nikola Has Bigger Market Valuation Than Ford
2:19 NASCAR Needs to Get Rid of Confederate Flags
3:49 Skoda Octavia Gets a Little Off-Road Flare
4:45 Updated Subaru Crosstrek Adds New Sport Trim
5:48 Ford Develops New Orange Paint for Mustang Mach-E
6:18 Lordstown Will Reveal Endurance Pickup This Month
7:05 Rolls-Royce Creates Clean Room for Assembly
8:05 BMW Invests in Prometheus Fuels

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41 Comments to “AD #2855 – Tesla’s Shares Near $1,000; Nikola Has More Value Than Ford; Updated Crosstrek Adds New Sport Trim”

  1. ChuckGrenci Says:

    So that’s where the BMW’s grill went, and in my observation also the next should have been BMW wagon; Skoda got it.

    Hard to tell the real look of the Mach-E’s orange color; looks a lot like gold in the pictures presented.

  2. Sean McElroy Says:

    I agree Chuck, the color does look a bit gold in these pictures. But you and I both know, the real proof will be out on the road with other cars.

  3. Ron Paris Says:

    At last! Adequate power for the Subaru Crosstrek. Now if they would only do the same for the Imprezza!

  4. Drew Says:

    Nikola has stated a goal to out-sell the F-150. While no icon is immune to major disruptions, Nikola will need lots of capacity and lower priced trucks to meet such a goal… unless Trevor Milton is banking on a future world wherein Ford collapses into oblivion. It’d be great to know the assumptions behind his statement – or – the results of his most recent drug test.

  5. lambo2015 Says:

    My first memories of the confederate flag was the one painted on top of the General Lee (from the TV show “Dukes of Hazzard”. As a child I just saw it as a symbol of being proud to be from the south. I never connected it to racism, but since one of the main reasons for the civil war was over slavery I can see how it would be viewed offensive. Certainly NASCAR will have to step in and do the right thing. Hopefully before they are threatened by the pulling of sponsors as then it just seems like a financial decision. Wont be much of a race with only the Win-Dixie, Walmart, KFC and Dennys cars.

  6. Wim van Acker Says:

    @TESLA, Nikola: the market capitalization of those companies never ceases to amaze me. Nikola at $30 billion, TESLA right now at $188 billion.

    Toyota: $214 BB, Daimler $47 BB.

  7. lambo2015 Says:

    4 Agreed, however how many more people would switch to a truck if it were an EV and not sucking down gas? Plus the fact that truck prices have gone up so much that even at 45K its priced within a F150. With the right features and range its not entirely out of the question for Nikola to be a major disruption to all truck manufacturers. Knocking off Ford is an ambitious goal, but you have to have goals right? Not sure where that would leave Ford as they have basically become a truck/SUV manufacturer with a Mustang.
    I’ll have to start watching the Simpsons see if they predicted Nikola buying Ford. Wouldn’t that be something.

  8. Kit Gerhart Says:

    Somehow, I don’t see millions of people waiting in line to buy electric pickup trucks. I’ll ask my Indiana neighbor if he’d consider one. He now has a Dodge/Ram diesel that he drives to work ~6 miles away, and uses it to tow a trailer with a drag car. If he only goes to a couple nearby strips to race, an electric truck would work for him, since he’d be able to easily set up home charging. If he goes very far to race, an electric truck would not work well.

  9. ChuckGrenci Says:

    4,7,8 To be a Ford 150 competitor is a fine goal to be sure. Nikola’s first obstacle though is to get a truck to market and survive the introduction, continued production and acceptance by the public. They may be shooting for the moon but they need a lot more than just a goal.

  10. Kit Gerhart Says:

    3. The Impreza WRX has plenty of power, but they now sell it only as a sedan in the U.S., but no hatch/wagon.

  11. JoeS Says:

    I think this has been said here before, that for a lot of truck owners (myself included) their truck is not a single purpose vehicle. If I only used it around town and cummuting an EV would work. We travel across the country camping in places that don’t even have cell reception let alone a charging station. I’ll keep my ICE truck for now.

  12. Kit Gerhart Says:

    To me, the Tesla stock price is crazy, even though they are selling cars, and doing the right things like “setting up shop” in China and Germany. Nikola, though? They are spending money like crazy, and making nothing, and their market cap is higher than Ford. Do Cybertruck, Nikola, and Lordstown really expect to take even a quarter of those 2M+ pickup sales away from Ford, GM, and FCA? I don’t see it happening any time in the next decade.

  13. Drew Says:

    @7 – Trevor needs to remember Ford will also have at least 1 EV truck offering.

  14. lambo2015 Says:

    11 You make a good point and maybe Tesla and Nikola would have been better off to develop a small or maybe a mid-sized truck. Appealing to the folks that want the use of a bed but don’t exactly need the towing capacity of a full size.
    I guess a case study would need to be done to know if the driving habits of Full/mid and small truck owners would favor an EV better.
    I think Tesla went with full size only because he wanted to be bigger, faster with more towing capacity beating the full size in every category he could. Which is probably overlooking the bigger picture of what will it actually be used for and then who is your target consumer?

  15. Kit Gerhart Says:

    NASCAR might have a gun fight on their hands, if they try to ban confederate flags at their races.

  16. ChuckGrenci Says:

    As far as the confederate flag goes: whose heritage will be trampled (Southern pride or the wave that is currently sweeping the ‘times’); ultimately, it will be determined by the almighty dollar, and probably at the expense of NASCAR’s base racing fans. I don’t have a ‘dog’ in this fight but I see both sides of the argument so I’m sure there will be quite a debate on this.

  17. Kit Gerhart Says:

    I’ve only ever been to NASCAR events twice, qualifying at Indy and Daytona, and am unlikely to ever go again. I’ve mostly lost interest in even watching NASCAR on TV, since they started the “playoffs,” taking breaks during the races, etc.

    To a lot of people, the confederate flag is a very negative symbol, almost like the swastika, and it’s unfortunate that people even want to display it. NASCAR fans should carry Ford, Chevy, and Toyota flags, like F1 fans do with Ferrari flags.

  18. Ziggy Says:

    I’m sure if NASCAR offers to replace the Confederate flag with a Black Lives Matter flag all will be well with the fans :)

  19. Kit Gerhart Says:

    Breaking news:

    https://www.washingtonpost.com/nation/2020/06/10/george-floyd-protests-live-updates/#link-BPLRSF63K5EOPA6EO446J37A34

  20. Bob Aubertin Says:

    Welcome to 2020 Gentleman,

    Confederate flag waving is living in the past, it is time to Grow Up and enjoy NASCAR racing for today.It’s corporate sponsors and race fans who support the Drivers,The Brands and sponsors product that get Race Fans excited, NOT CONFEDERATE FLAGS.

  21. MJB Says:

    @5 – I, too, got my first intro to the confederate flag watching The Dukes of Hazard. I used to love that show.

    It wasn’t until a bit later in life that I learned I had been duped into thinking that flag was cool, when what it really symbolized for was nothing but pain and misery for my ancestors. Because outside of the widely known and oft repeated factoids about Martin Luther King Jr., “my” history was widely panned in the school textbooks of the ’80s.

  22. Larry D. Says:

    12 There is NOTHING Crazy about Tesla’s price. The Future will be electrified, AND Tesla has already WON THE GAME and Already DOMINATES (as all who pay attention to the FACTS) the BEV Segment. There is yet NO indication that ANY other maker will come even close. Even VWs CEO is a BIG Admirer of Musk. But I do not expect the fuddy daddies here to ever appreciate him.

    One can argue that NICOLA’s valuation greater than Ford, for a company who has not sold A DAMNED THING yet, much less DOMINATE its industry, it sure crazy, 100% SPECULATIVE, and Ridiculous.

    Prepare your collective stomachs for TSLA at $2,000, $3,000, and $5,000, as Ford and GM go BANKRUPT and big mommy Govermnemt bails them out again (for sure, if that CLOWN Biden gets elected, but even if Trump wins again)

  23. Kit Gerhart Says:

    22 Since Tesla stock is so underpriced, have you sold all of your index funds, etc. and bought Tesla with the procedes?

  24. Kit Gerhart Says:

    22 Yes, Tesla dominates the BEV market, as GM dominated the total market in the late ’50s-early ’60s. Was GM’s stock value ever 8 times the company’s annual revenue? I doubt it. Toyota is a successful car company, and their stock value is less than one time their annual revenue.

  25. Larry D. Says:

    23 I never owned an index fund, I thought I could do better (and Sure did) by investing in much better performing ones. MANY times I refused such opportunities to play such games, primarily because the cap gains taxes would KILL ME if I did. But even in my 401k, I never made changes, kept my policy for decades and have not regretted it.

    As long as you don’t buy any more Ford shares, you should be OK. I’d not buy any ludicrously overvalued Nikola shares (the name is a pathetic copycat of TESLA being taken) either.

    PS I bet you have missed many many opportunities, just like I did, because they were “expensive” at the time. Like MICROSOFT< APPLE AMAZON etc. i solved that problem by investing in a Biotech Mutual fund and not having to see the individual "expensive" stocks they kept buying, which made that investment THREE TIMES the size of an equivalent investment in Fidelity Maggelan (which I also did), and probably 6 times that of your index fund.

    I do recommend widely held funds to friends who do not have time to do any research though.

  26. Kit Gerhart Says:

    25. Actually, I have a little Microsoft, but bought it much too late to have it grow 100 fold, but long enough ago that it’s done pretty well. Nope, I don’t plan to buy any more Ford. I have a little Daimler stock too, as a result of various things that have happened with the Chrysler my father bought in 1966, which I inherited half of.

    I have several mutual funds, one of them Maggelan. I don’t really keep track of it that much. My total investments have averaged about 11%/year over the last 15 years, and I’m happy with that. Yeah, a biotech fund should be good.

  27. lambo2015 Says:

    26 You should have bought stock in whoever makes plexiglass. With every business and restaurant having to place dividers up they have to be doing amazing right now. Probably same with any TP manufacturer.

  28. MERKUR DRIVER Says:

    Is TESLA and Nikola overvalued? Absolutely. Does anyone care? No.

    I really could care less, it is not my money to lose or gain. I will applaud their gains and laugh at their losses just as I do with any over valued investment people choose to be a part of.

  29. Kit Gerhart Says:

    27 I suspect a number of small companies that fabricate and install those dividers are doing well.

  30. lambo2015 Says:

    20,21 What is amazing to me is that most people can easily understand how flying a Nazi flag would be offensive and wouldn’t even consider it. Yet need to be told not to fly the confederate flag. Wait! probably the same people.
    With that said I don’t think we can turn our back on the past and pretend it never happened. Changing the names of military bases, buildings and streets named after historic figures who owned slaves seems extreme. What people seem to forget is that what is acceptable today may seem incredibly stupid 50 years from now. Our ancestors also thought it was perfectly acceptable to dump waste into our rivers and streams, Smoke a pack of cigarettes a day.

    Today many of us eat meat even though there are plenty of vegetarians who think its wrong and inhumane to animals. Its a choice we all make but in 50 years it could be as unacceptable as slavery, and anyone who ate meat could be considered offensive and have any symbols/statues of them removed because of something you do that was acceptable at the time. Our history is certainly not perfect and thankfully we have evolved. Pretending it didn’t happen doesn’t make it go away.

  31. Larry D. Says:

    https://europe.autonews.com/automakers/tesla-wins-china-approval-build-model-3-lfp-batteries-ministry-says?utm_source=daily&utm_medium=email&utm_campaign=20200611&utm_content=article6-image

    Onwards and Upwards once more!

  32. Larry D. Says:

    https://europe.autonews.com/automakers/musk-says-time-bring-tesla-semi-truck-volume-production?utm_source=daily&utm_medium=email&utm_campaign=20200611&utm_content=article8-headline

    And now the big guns!

  33. Kit Gerhart Says:

    30 I find it interesting that most of the army bases named for confederate generals were so named in around 1918, when the last of the civil war soldiers would have been dying off. It would be like Germany now naming their army bases after Rommel and Goering. I don’t think they are doing that.

  34. Larry D. Says:

    How much is Ford, BTW? $2? If you sell 500 Ford shares, you can buy one Tesla share. Hurry…in two weeks you may need 1,000 of them.

  35. Kit Gerhart Says:

    34. Ford is about $6. No, I don’t follow it. I googled it just now. It may take off like Tesla after the E-Thing hits the market. No, I’m not serious.

  36. veh Says:

    My take on electric pickups is that I would never consider one to replace my ICE F150 UNLESS it can match towing range/ease of refueling. I suspect that there are a lot of people who actually use their trucks as trucks that would say the same. If your pickup is a daily driver commuter, you might consider an electric but I don’t think they are ready yet for heavy duty use.

  37. MERKUR DRIVER Says:

    36) I read somewhere that GM feels that 85% of their customers for the 1500 Series Silverados use them for commuting and could benefit from an electric pick up. I find that to be a bit high but you never know. You are right though, towing/hauling with an electric drastically cuts the range and with 40-60 minute recharge times, it is not practical to use an electric truck for that duty right now. What is needed in the truck space is a P3 style system until full P4(BEV) can become practical.

  38. lambo2015 Says:

    37 Yeah it might be 85% for the majority of their use but even if they use it for a camping trip a couple times a year, who wants to add an extra hour+ commute to their vacation time for charging? If the EV truck cannot meet all ones needs and be as veh stated comparable to a ICE in refueling, range and abilities than it will be a hard sell.
    Its an expensive purchase for a vehicle that only meets 85% of your needs. Especially when one that meets all your needs can still be had for less money.

  39. Kit Gerhart Says:

    38. I know a number of pickup owners, and probably 85% of them never tow, or haul anything heavy. Many of them are used for highway trips, though, and with today’s charger infrastructure, would not be good for that, at least if you are in much of a hurry to get somewhere. Many of these people would be better off with a minivan, or even a car, but that’s another story.

  40. lambo2015 Says:

    Time is money and for those that have limited vacation days (which most people do) not very many will be willing to add hours to their trip waiting for their truck to be charged up.

  41. Larry D. Says:

    The $1,000 Tesla share price spike was due to its verified internal email re ramping up the production of its Semi, for which it had 100s of orders from major corporations years ago.

    If they have the resources to build it, a Semi may be the best, most appropriate vehicle to use Electric Propulsion. The instant torque will help those slow as molasses vehicles (especially from 0) to move much faster and relieve a lot of highway congestion.