Another Tesla Model S Caught On Fire At Supercharger Station In Shanghai
WHEN WILL THE TESLA FIRE DANGER COVER-UPS END?
A Tesla Model S caught on fire on March 4 while being parked at a supercharger station in Shanghai. The accident destroyed the Model S vehicle and another Tesla car parked next to the Model S. No one was injured during the accident, according to Chinese media reports.
The Jinqiao Tesla supercharger station was located across the street from Tesla's first 4S stores in China. Chinese reports suggest that the vehicle in question has parked in its location for a long time, and it's unclear if the vehicle was being charged or not while the fire took place.
Tesla's press office in Asia did not immediately respond to an inquiry from China Money Network to confirm the news.
Staff at the supercharger used dry powder fire extinguisher to put out the fire, as the lithium batteries used in Tesla vehicles reacts explosively with water to form hydrogen.
In November, a Tesla Model S caught on fire after hitting a tree at a reportedly high-speed in Indianapolis in the U.S., killing both the driver and the passenger. In September, a Tesla Model S driver also died in a crash after hitting a tree at high speed in the Netherlands.
One month earlier, a Model S caught on fire in France during a test drive. In January 2016, a Tesla Model S caught on fire while charging at a supercharger in Norway. The cause was later determined to be a short circuit by Tesla.
More pictures from Chinese social media platforms:
Why We Know That Elon Musk Is A Criminal
By Susan T. and Andrew H.
We saw Elon Musk commit crimes and we saw the Obama White House cover-up those crimes.
We, and our associates, worked for Bright Automotive, Zap Electric, Aptera, Eco Motors, XPV, The United States Department of Energy and the federal Office of Management and Budget and Tesla Motors itself.
Americans have an expectation that their tax dollars will be used in a fair and legal manner and not to pay off crony campaign financiers like Elon Musk. Americans have an expectation that fair market competition will decide which companies get to live or die and that no campaign financiers gets to order the White House to produce the death or success decision about any American business. Elon Musk’s operation exists entirely because of criminal corruption and all of his companies must be shut down by federal law enforcement.
For nearly a decade, the U.S. Department of Energy has refused to comply with Freedom of Information Act (FOIA) requests for copies of Tesla Motors entire D.O.E. funding application documents. Former D.O.E. employees have shredded copies of those documents in order to keep them from being exposed to the public and the media. Why would they do that? Because those documents reveal felony criminal fraud by Tesla Motors, federal violations of the Section 136 law requirements and manipulations of the “hard-wiring” of the entire D.O.E. program. Those documents, which we have seen (and some Senate staff have private copies of) prove that, in a side-by-side comparison with all other applicants, the Tesla application was manipulation, rigged, false-reviewed and crony-advanced in order to pay-off certain campaign financiers and damage their competitors. Tell the U.S. Congress to demand that the U.S. Department of Energy stop breaking the law and comply with the FOIA requests to stop hiding the incriminating evidence in the Tesla files. Demand that the public be shown the original paper and not the later, “doctored” versions.
We saw Elon Musk operate an entirely illegal and unethical program based on State and Federal corruption. We told this, in writing and in person to the U.S. Attorney General: Eric Holder, who then quit his job after we reported these facts to him.
We reported that Elon Musk lied about vast number of dangers of the lithium ion chemistry he was using. Nothing was done.
We reported that our associates at the Department of Energy were having their safety reports on lithium ion danger suppressed. Nothing was done.
We reported that Elon Musk’s credit rating and financial records were fraudulent and amounted to “cooking the books”. Nothing was done.
We reported bribes paid by Musk’s lobbyists and associated to government officials in order to grease the skids for his crony payola. Nothing was done.
We reported that Goldman Sachs and Tesla Motors were operating a stock fraud pump-and-dump scam to manipulate Elon Musk’s stock holdings. Nothing was done.
We reported over a hundred illegal and corrupt actions by Elon Musk and his mob of Silicon Valley gangsters. Nothing was done.
We have seen this flyer that is being posted on the internet and can swear that all of it is accurate:
TESLA MOTORS: CREATED BY CORRUPTION,
BRIBES AND LIES!
DEMAND THAT A FEDERAL SPECIAL PROSECUTOR REVIEW ALL OF THESE CHARGES IN A PUBLIC HEARING!
** If you have an ounce of morality, then you will not want to help Musk & Tesla profit from the crony political corruption that created them. Musk exists because he bribes politicians & acts as an illegal campaign financing conduit.
** DOT/NHTSA has covered up years of reports about an acceleration surge issue that can suddenly crash your Tesla into walls and drive it off cliffs. It is either a known hacking attack or the effect of WiFi on Tesla electronics. Either can kill you.
** Musk & Tesla are pure evil & exist because of hyper-corruption. You don’t want to contribute to their evil or be part of it in any way. You are funding evil & supporting criminal corruption by buying a Tesla or any Elon Musk owned product like Solar City, Tesla, Space X, Hyperloop, etc.!
** Elon Musk spent more money, than any other car company in history, to do the exact same things that any other car has done, or could do, for 20 times less money. Musk’s Tesla was $100,000.00 over budget, per car, at the time that Musk was handed his crony Dept. of Energy froms by Steven Chu. Musk has no clue how to operate a car company.
** In one lawsuit it is noted that: “...Plaintiff and Tesla both applied for funds at the same time, in the same funding cycle in the same program. Tesla had the historically epic number of horrific issues listed below, which were known to DOE at the time of application, and Plaintiffs had NONE of these issues. How can any court, or rational person, believe that Plaintiffs were not intentionally bypassed, targeted and damaged for political reasons while Tesla was simultaneously approved for political reasons, when the comparative metrics between the two applicants prove the largest merit disparity in the entire recorded history of the U.S. Department of Energy….the singular, and only, review criteria used by Department of Energy officials was: WHICH ONE BRIBED THE CAMPAIGN FINANCE GROUP FOR BARACK OBAMA?!"; Thus proving that Tesla exists because of organized-crime level political corruption.
** Elon Musk’s self-driving “autopilot” feature, which keeps crashing and failing, is his attempt to scam taxpayer cash from Dept. of Transportation and Dept. of Energy public funds. He is only trying to do it to get more free federal cash.
** The inventor of lithium ion batteries has confessed that lithium ion batteries blow up eventually. He says that deadly dendrites plague lithium-ion battery technology. The dendrites accumulate as part of the standard charging and recharging cycle and eventually cause a short circuit that often results in a smoldering or burning battery. These dendrites are destined to eventually blow up most Tesla cars and many electronic devices using lithium ion!
** The CIA’s software designed to take over any Tesla on Earth and kill the driver, passengers and bystanders has been released in the wild and every hacker on Earth can now easily get a copy of it and kill you in your Tesla!
** Ex-employees have leaked faked financial records, evidence of massive click-farm fake social media manipulation and evidence of unreported deaths and accidents. They say that most Tesla’s have one kind of defect or another.
** If you read about the dirty deeds and cocaine dealings with the In-Q-Tel airplanes called “Cocaine 1” & “Cocaine 2”, & the corruption behind the company called In-Q-Tel & Musk’s software programmer who ran “The Silk Road” drug & murder service then you must be concerned that many In-Q-Tel people work for Musk. Why does Musk need dirty druggies & spies on his payroll unless he is running covert drug and business spying activities?
** Ex-employees, Gawker writers and gay lawyers from Covington & Burling have leaked stories that Elon Musk, Reid Hoffman, Larry Page are “butt buddies”.
** Musk is anti-American and Anti-Worker Rights and has been caught flying in H1-B cheap offshore labor and exploiting immigrants for his deadly profits. Musk hates unions and worker rights efforts.
** Elon Musk gets the Cobalt chemical to make his lithium ion batteries from slave trade and blood-money corruption in the Congo!
** The lithium ion batteries that Musk uses also blow up when they naturally encounter Low Energy Nuclear (LENR) effects in the ambient environment. Millions of chemicals don’t blow up from LENR’d but lithium ion does!
** If you are a Democrat then know that Elon Musk cost you the Hillary Clinton campaign because of his payola schemes. If you are a Republican, know that Elon Musk is the epitome of the worst form of DNC crony corruption you ever saw!
** Musk bribed California politicians to give him hundreds of millions of dollars of taxpayer dollars & resources he never earned or worked for. He only got those crony payola perks handed to him because he operated as an illicit front for corrupt campaign financing for Dianne Feinstein, Jerry Brown, Harry Reid, Barack Obama and Hillary Clinton.
** Multiple parties have filed “Demands For The Arrest of Elon Musk” with the FBI, DOJ, AG, FTC, SEC and other law enforcement agencies. It is not likely that Musk, or his companies will survive a full investigation.
** Tesla and Solyndra sit on the same land in Fremont, CA. Solyndra was raided by the FBI for corruption. Tesla SHOULD be raided by the FBI for corruption. Both companies had kick-back crony payola schemes with Senator Dianne Feinstein. She owned the land, lease, HR, construction company and supplier interests and stock for both companies in one of the most massive conflict-of-interest crony financing schemes in U.S. history. Elon Musk and the Feinsteins are corruption partners.
** People who see you in a Tesla think of you as a “Tone Deaf Douchebag”, “Tesla Tool!”, “Arrogant Prick”, “Ostentatious Obama Oaf”, “Sheep”, “Mindless Yuppie Scum”, “Misogynistic Silicon Valley Clone”, “Self-promoting Elitist Douche”, “Fake News Reading Main Stream Boob”, “Naive Idiot” or other bad things.
** Elon Musk is one of the main financiers behind Barack Obama & Hillary Clinton, both of whom have been charged with corruption. Musk endlessly tweets lies & “...No I didn’t do those bad things” BS but nobody else supports him.
** Tesla financial records are “cooked” in a fraudulent manner to make the stock market valuation of Tesla a falsely manipulated factor. Musk uses “pre-orders”, by his own investors, to fake sales and wrote emails to customers asking them to put small deposits down so he could book them as fully paid sales in one of a large number of stock and loan valuation frauds. Musk and his investors practice stock market skims, pump-and-dumps and Flash Boy manipulations.
** Lithium ion batteries are blowing up, starting fires &, generally, destroying people’s homes, cars, electronics & physical health. Boeing was ordered to stop flying the 787 Dreamliner because it's Lithium ion batteries are catching fire spontaneously. A group of silicon valley venture capitalists forced/leveraged the government to buy & pay for these specific batteries, that they have stock in, in order to benefit their profit margins. Other batteries don’t have these problems. They knew about the dangers from day one, but put greed ahead of safety. There are thousands & thousands of reports of spontaneous lithium ion fires but the VC's who back lithium ion pay to keep this information hushed up. Millions of these batteries have been recalled for fire risk. The VC's tried to push as many as they could before they got caught. Now they are caught. These VC's & the Senators they bribed own stock in lithium mining companies too. HERE IS THE PROOF: HTTP://LITHIUMBATTERYCOVERUP.COM
** Tesla Motors has filed a patent which states the following , THESE ARE TESLA MOTORS WORDS warning about a crisis, the level of which they never disclosed to the consumer: “Thermal runaway is of major concern since a single incident can lead to significant property damage &, in some circumstances, bodily harm or loss of life. When a battery undergoes thermal runaway, it typically emits a large quantity of smoke, jets of flaming liquid electrolyte, & sufficient heat to lead to the combustion & destruction of materials in close proximity to the cell. If the cell undergoing thermal runaway is surrounded by one or more additional cells as is typical in a battery pack, then a single thermal runaway event can quickly lead to the thermal runaway of multiple cells which, in turn, can lead to much more extensive collateral damage. Regardless of whether a single cell or multiple cells are undergoing this phenomenon, if the initial fire is not extinguished immediately, subsequent fires may be caused that dramatically expand the degree of property damage. For example, the thermal runaway of a battery within an unattended laptop will likely result in not only the destruction of the laptop, but also at least partial destruction of its surroundings, e.g., home, office, car, laboratory, etc. If the laptop is on-board an aircraft, for example within the cargo hold or a luggage compartment, the ensuing smoke & fire may lead to an emergency landing or, under more dire conditions, a crash landing. Similarly, the thermal runaway of one or more batteries within the battery pack of a hybrid or electric vehicle may destroy not only the car, but may lead to a car wreck if the car is being driven or the destruction of its surroundings if the car is parked”. See http://whoiselonmusk.com for more...
** Tesla's own staff, & every fire department, have now admitted that once a lithium ion fire gets started in a Tesla, that it is impossible to extinguish burning lithium ion material. This is Telsa’s own words in THEIR patent filing, (You can look it up online) saying that the risk is monumental. Tesla has 6800 lithium ion batteries, any one of which can “go thermal”, start a chain reaction and blow up all of the rest of the 6800+ deadly batteries! Tesla drivers have been burned alive in thermal globs of flaming lithium ion, plastics & metal. Bystanders have heard their horrific screams of unutterable pain & terror as they were burned alive! Tesla fires can’t be extinguished & the bodies are burned into “unrecognizable lumps of charred flesh”, according to fireman.
** Lithium Ion batteries “go thermal” in peoples pockets, in your notebook, especially in a Tesla & Fisker car. There are tens of thousands of articles documenting this & there is a cover-up by the VC’s that fund these things to keep this fact out-of-sight. Making Lithium Ion batteries poisons the workers who make them. It is a dangerous product that is covered-up by the Obama Administration. Panasonic knows that these batteries are deadly.
** Tesla only exists to exploit Elon Musk’s briberies. The lithium ion batteries blow up when they get: wet, hot, bumped, over-charged, struck by energy fields, exposed to air or squashed. Lithium ion batteries poison the Earth & that they poison & kill the workers that make them. Lithium ion batteries come from war profiteering in Afghan & Bolivian corruption.
** Panasonic is Elon Musk’s partner. Panasonic is one of the most corrupt companies in the world. Panasonic has been charged, on multiple continents with: Product dumping, bribery, collusion, price fixing, anti-trust law violations, racketeering, worker abuse, toxic poisoning of workers, & other crimes. It is no wonder that Elon Musk & Panasonic are partners. Tata Motors executive Karl Slym was killed for exposing this fact.
** Your tax dollars were stolen in order to make Tesla Motors, as part of a political financing kick-back scam. In other words, part of your paycheck was taken away from you in order to buy hookers, rent-boys & private jets for Musk & company.
** Tesla’s are forged in criminal corruption, so anybody who drives a Tesla must be either ignorant, a weasel or one of the corrupt. The whole world now knows all of the facts in this list so you can never plead ignorance to these crimes.
** Telsa’s have a huge amount of highly documented defects. The defects are so extensive that Tesla made buyers sign confidentiality agreements to try to hide how messed up their cars are.
** Tesla’s have killed more people than the main-stream news has reported. The full Tesla death-list is covered up.
** Musk lied about why he wanted to make electric cars, when, in fact, he actually poisons the environment because Tesla investors wanted to exploit toxic minerals & materials which can't be recycled in a clean manner
** No other electric car has been so mundane, & yet had so many problems with it, since the electric car was first sold in the 1800's. There is nothing “novel” or “amazing” about the Tesla aside from dime store parlor tricks for PR hype.
** More drunks have crashed Tesla's, than any other per capita car in the world, per volume of cars made
** Elon Musk's co-founders, investors, partners, wives, investors, suppliers & employees have sued him for being a fraud &, essentially, called him an "asshole" in court records.
** Elon Musk lied on this Department of Energy funding application and the Obama Administration refuses to allow any federal employees or witnesses to testify to these facts in public due to the devastating potential results of these facts.
** More owners of Tesla's have been found to cheat on their taxes, & be involved in abuse-based divorces, than almost any other car brand owner. Tesla owners are bad people who rationalize their poor life choices. Owning a Tesla is a red-flag for a tax audit!
** Elon Musk will lie, cheat & steal in order to self-aggrandize & glorify his egotistical mania. Musk has been documented engaging in over 100 lies which were later proven to be false. He has spent tens of millions of dollars to buy fake news about himself on Twitter, Facebook & Google because he is such a mentally disturbed ego-maniac.
** None of Elon Musk's companies would exist if not for taxpayer funded handouts given to him by corrupt politicians in exchange for illegal campaign finance deals with him & his investors.
** Google, & Tesla, who are financial & political partners, have both been caught spying on consumers & manipulating Internet data in order to cover-up their complicity in huge political corruption & kick-back deals
** Musk took U.S. taxpayer dollars from the government & then hired cheap off-shore labor & fired U.S. Union workers & domestic workers. He lied to & screwed the NUMMI workers that were working at the Fremont plant.
** Musk has put over 18 surveillance devices in the Tesla. Anybody can hack those devices & monitor you. WORSE YET, foreign agents have hacked the Tesla & taken over the controls & driven Tesla’s into bystanders & over cliffs.
** When Erick Strickland was head of the NHTSA he was confronted about DOT safety cover-ups of the Tesla to protect Obama. He quit 48 hours later. The DOT safety cover-ups to protect the Obama campaign finance payola scheme continue to this day. Obama’s Gibbs, Emanual, Plouffe, Axelrod and Carney quit within a week of being threatened with exposure.
** Tesla’s have had a large number of recalls but Elon Musk refuses to call them “recalls”. Tesla’s have had multiple recalls for SEVERE safety dangers. DOT has been told this, in writing, for years, but wont take action in order to protect Obama.
** Elon Musk is a bullshit artist who has no original ideas & wears black-turtle neck shirts (like Elizabeth Homes) to try to create a “cult” around himself & convince the world that he is a “Jesus-like” figure when, in fact, he is a clinical sociopath.
** Tesla is a severe public safety hazard that has been systematically covered up by corrupt politicians.
** Large numbers of Ex-CIA staff and In-Q-Tel spy staff work for Musk. Why does he need spies to build cars?
** Tesla Motors batteries were promoted by those who wished to exploit the Afghanistan War for personal profit by controlling the Afghan lithium mining fields. Kleiner Perkins and Draper Fisher hyped the “...trillions of $ of lithium in Afganistan.”
** Tesla Motors batteries blow up on their own.
** Tesla Motors batteries blow up when they get wet.
** Tesla Motors batteries fires cannot be put out by any common fire-fighting resources.
** Tesla Motors batteries set themselves on fire.
** Tesla Motors Vehicles toxicity poison bystanders, nearby vehicular passengers, airline passengers in planes carrying said batteries in their holds, & environments where such incidents occur.
** Tesla Motors batteries blow up when bumped by the same level of car incident that would, otherwise, only dent a normal car bumper.
** In an accident, when a Tesla rolls over, molten metal & plastic can drip on & burn the occupants alive.
** Tesla has multiple sexual harassment and unsafe work-place lawsuits against the company.
** Per MSDS documents, Tesla Motors batteries emit brain damaging chemicals when they burn.
** Tesla is a stock pumping scam to profiteering on stock market peak manipulation at the expense of taxpayers.
** Per MSDS documents, Tesla Motors batteries emit chemicals, burning, or not, that can damage an unborn fetus.
** Per MSDS documents, Tesla Motors batteries emit chemicals that can cause lung damage.
** Per MSDS documents, Tesla Motors batteries emit chemicals that can cause liver damage.
** Per published lawsuits & news reports, the factories that make Tesla Motors batteries have been charged with the deaths, & potentially fatal illness, of over 1000 workers & the poisoning of nearby towns.
** Tesla Motors batteries become even more dangerous over time, particularly when tasked by electric transportation systems like Hover-boards & Tesla's. The chemistry in a lithium ion battery changes to become more unstable over time.
** Tesla Motors batteries were never designed to be used in automobiles. Tesla used non-automotive batteries in one of the most dangerous configurations possible.
** Tesla Motors occupants experience higher EMF radiation exposure than gasoline vehicle occupants.
** Elon Musk's Space X vehicles & Tesla Motors vehicles have both had a higher-than-average number of explosions. This has caused outside experts to doubt Musk's ability to place safety considerations over his need for hyped-up PR.
** Leaked Sandia National Labs & FAA research videos dramatically demonstrate the unstoppable, horrific, “re-percussive accelerating domino-effect” explosive fire effect of the Tesla Motors batteries.
** Tesla's own “Superchargers” & home 3-prong chargers have set Tesla's, homes & businesses on fire.
** Consumer rights groups contacted Erick Strickland, the head of the NHTSA, & charged him with a cover-up. He quit days later. The NHTSA then issued a safety investigation request to Tesla Motors, which would have more publicly exposed these dangers, but the safety investigation was never under-taken due to White House requests & lobbyist bribes, from Tesla, which got the investigation shut down.
** NEPA regulations for the Tesla NUMMI factory in California & the Nevada Tesla “Gigafactory” have been violated relative to environmental safety standards. See http://xyzcase.xyz for details.
** Tesla Motors vehicles are not “Factory Built” “like Ford” builds cars, as Tesla professes. They are hand built in small volumes & subjected to numerous defects. Blogs have documented hundreds of defects, as listed by Tesla owners. Tesla has lost at least one LEMON CAR LAWSUIT for defective manufacturing.
** Tesla's “showrooms” are often “pop-up” retail storefronts that are in tight-proximity retail centers, putting it's neighbors at risk of total loss from fire damage.
** Tesla Motors vehicles have been hacked & taken over. Their doors, steering, listening devices & navigation have been taken over by outside parties. Multiple Tesla have suddenly swerved off the road, over cliffs & into other vehicles, killing bystanders & Tesla drivers.
** Three Tesla top engineers & two competing senior executives, all of whom had whistle-blown on Tesla, who were in perfect health one day, suddenly died mysteriously the next day.
** Multiple employees, founders, investors, marital partners, suppliers & others have sued Tesla Motors, &/or it's senior executives for fraud. Musk had nothing to do with creating Tesla. He ran a hostile take-over of Tesla from the founders.
** In addition to suing him, many of his former staff & partners have described Musk as an “Arrogant Prick”.
** Main-Stream Media (MSM) have agreed not to provide news coverage of the deadly defects of the Tesla because the MSM are owned by the same politicians who own Tesla Motors. It is now legal to sue The New York Times for hiding these deadly defects, though, particularly if your family member was injured or killed because they covered-up the danger for political reasons.
** If you think the above bullet-points are bad there are over a 1000 more. Find the book “Is Elon Musk A Fraud” online or visit https://stopelonfromfailingagain.com/ or thousands of other sites that expose the truth about Musk & Tesla!
BANKRUPT MUSK – NO CASH FOR CRONY CORRUPTION. Print this out & freely re-post it on blogs & social media. Post this on bulletin boards. Put this on the windshield of every Tesla you find. Print this out & hand these out in front of every Tesla dealership: Nobody can stop you from handing these out, it is your U.S. Constitutional First Amendment Right! Pass the word! We are prepared to back up every single fact on here at any public meeting with the FBI, Congress, FTC, GAO, SEC or before a Federal Special Prosecutor.
The crash of a Tesla Model X through the home of South Korean singer and actor Ji Chang Son. The crash ended with the nose of the vehicle in Ji Chang Son's living room after the Tesla malfunctioned. Hundreds of such Tesla crashes have occurred, resulting in the deaths and injuries of Tesla owners, passengers, bystanders, oncoming drivers and others.
Following accusations by a Korean celebrity that a Tesla car spontaneously drove through a wall, the carmaker has replied that the crash was “entirely due to the man’s horrible driving” in an ongoing effort, by Tesla, to steer the blame away from Tesla faulty engineering
Actor and singer Son Ji-chang (identified as Ji Chang Son in court documents) claimed he was parking his Tesla Model X SUV when the vehicle suddenly lurched forward into his living room.
In a lawsuit filed last week in California, Son claimed that the crash was due to “sudden unintended acceleration” and sought class-action status with other Model X owners.
In a nod to the car’s ability to sense and avoid crashes, the lawsuit also hinted that the Model X should not be allowed take actions that the car “knows will result in the collision with a fixed object.”
But Tesla contends its Model X was only dutifully following Son’s instructions to plough through his house.
“The evidence, including data from the car, conclusively shows that the crash was the result of Mr. Son pressing the accelerator pedal all the way to 100 per cent,” said Tesla in a statement to Reuters.
Although most new cars are equipped with “black box” technology to record driver actions in the event of a crash, Tesla is unique for amassing vehicle data as detailed as whether a driver’s hands are on the steering wheel.
The data is collected to aid in research and design, but Tesla user agreements also reserve the carmaker’s right to use it to defend itself in court.
The term “sudden unintended acceleration” has a checkered recent history. Most famously, between 2009 and 2011 Toyota recalled more than eight million vehicles following widespread allegations that the vehicles were subject to unexpected ac celeration.
But a subsequent investigation by the U.S. Department of Transportation found that most of the reported cases of “sudden unintended acceleration” were simply drivers stepping on the gas instead of the brake — with only a handful of incidents being due to pedals getting stuck on floormats.
In June, another California-based Model X owner, Puzant Ozbag, similarly claimed that his Model X spontaneously accelerated through a parking lot and into a wall.In that case, too, Tesla reviewed vehicle records and reported that the actual culprit was Ozbag jamming his foot down on the accelerator. A special prosecutor is needed to investigate Tesla due to the huge number of cover-ups, by Tesla and the Obama Administration, to protect camapign financier Elon Musk. Jeff Sessions needs to hire a lawyer from outside the government appointed by Sessions as attorney general or, in the United States, by Congress to investigate a government official for misconduct while in office. A reasoning for such an appointment is that the governmental branch or agency may have political connections to those it might be asked to investigate. Inherently, this creates a conflict of interest and a solution is to have someone from outside the department lead the investigation. The term "special prosecutor" may have a variety of meanings from one country to the next, from one government branch to the next within the same country, and within different agencies within each government branch. Critics of the use of special prosecutors argue that these investigators act as a "fourth branch" to the government because they are not subject to limitations in spending, nor do they have deadlines to meet.
Attorneys carrying out special prosecutor functions in either federal or state courts of the United States are typically appointed ad hoc with representation limited to one case or a delineated series of cases that implicate compelling governmental interests, such as: Fraud (SEC, Complex, Cybercrime, Mortgages), Public Corruption, Money Laundering & Asset Forfeiture, Civil Rights, Racketeering Across State lines, Environmental Protection, National Security, Tax & Bankruptcy, Organized Crime, or International cases where the US is a party). Special prosecutors in courts of the United States may either be appointed formally by one of the three branches of government in a criminal proceeding, or when dictated by federal law or regulation, or informally in civil proceedings, and also by one of the three branches of government, or by a non-governmental entity to prosecute alleged unlawful conduct by government agents. When appointed by the judicial branch to investigate and, if justified, seek indictments in a particular judicial branch case, the attorney is called special prosecutor. When appointed/hired particularly by a governmental branch or agency to investigate alleged misconduct within that branch or agency, the attorney is called independent counsel. When appointed/hired by the state or political subdivision to assist in a particular judicial branch case when the public interest so requires, the attorney is called special counsel. When appointed/hired by an organization, corporation, person or other non-governmental entity to investigate and, if justified, seek indictments against one or more government officials for acts committed under color of law, the attorney may be called special counsel or special prosecutor, but not independent counsel.
On January 3, 1983, the United States federal government substituted the term independent counsel for special prosecutor. Archibald Cox was one of the most notable special prosecutors. However, special prosecutor Archibald Cox today would be called independent counsel Archibald Cox in the United States.
The term is sometimes used as a synonym for independent counsel, but under the former law authorizing the independent counsel, the appointment was made by a special panel of the United States Court of Appeals for the District of Columbia Circuit. The Ethics in Government Act expired in 1999, and was effectively replaced by Department of Justice regulation 28 CFR Part 600, under which Special Counsel Patrick Fitzgerald was appointed to look into the Plame affair. The Tesla Motors and Elon Musk Case requires a Special Prosecutor.
ELIO MOTORS IS BEING ATTACKED BY ELON MUSK AND HIS FAKE NEWS AGENTS
By Steven Ralston, CFA
Elio Motors (ELIO) is in the process of designing, developing and soon-to-be manufacturing an ultra-efficient, low-cost, three-wheeled, two-person vehicle. With attractive performance, safety, fuel economy and aerodynamic styling characteristics, the Elio has the potential to become a game-changer leading to broad market acceptance of economical, three-wheel vehicles. Strong current demand is reflected by over 64,000 customer reservations. Management anticipates assembling the 100 S1 prototypes for real-world evaluation during 2017 with commercial mass production to follow in 2018.
Since the beginning of November 2016, Elio’s stock has been pressured by a variety of factors, specifically by the conversion of Convertible Subordinated Notes into common stock (and subsequent sale of some of that stock), the announcement that commercial production is now expected to commence in 2018 (rather than prior expectations of late 2017) and a series of articles in early January that highlighted the normal cautionary factors of a start-up company like Elio Motors, along with an inflammatory comment about a certain hearing date.
First, the Elio’s stock has succumbed to a wave of selling pressure from the stock issued as a result of the conversion of Convertible Subordinated Notes into common stock. As of the latest filing (November 18, 2016), 109,505 shares have been issued at a conversion price of $5.98. Since then, we estimate almost another 100,000 shares have been issued at the same cost. These 200,000+ shares created a stock overhang. Many of these former bond holders obviously chose to lock in profits in $19-to-$12 range during November and December as average daily volume increased over 150% from 3,700 to over 10,000 shares, and increased again to over 20,000 shares daily in January 2017.
Second, on December 31, 2016, the company indicated that consumer production was now being targeted to start in 2018. Previously, commercial production had been anticipated by the end of 2017. Though the push out is somewhat disappointing, it is not totally unexpected. The projected timetables relayed by managements of small cap stocks are almost always overly optimistic. Intensifying the issue, Elio Motors is in the process of developing and bringing to market a high-ticket consumer durable product that not only is fraught with complex design and development challenges, but also is required to meet stringent governmental operational and safety requirements. As long as progress is being made with the E-Series vehicles, minor delays in the timetable for commercial production are not overly concerning. Better to ultimately produce a safe and efficient vehicle than increase the risk of future potential recalls.
Third, during the first week of January, many news sources, including local media channels in Shreveport, reported that the company’s accumulated deficit was over $123 million (as of September 30, 2016), insinuating that it was debt and also cited that the going concern accounting language requirement in the 10-Q was fact rather than cautionary. Companies bringing an initial product to market always incur start-up costs and an initial accumulated deficit, which represents the accounting measurement of the costs incurred for engineering, research and development. In general, the greater the price of the product results in a larger the accumulated deficit. For example, Tesla (TSLA), the developer of fully electric vehicles, first started generating revenues in 2007. At that time, Tesla had incurred an accumulated deficit of $122 million and was operating with a working capital deficit of almost $29 million, and in the following year the deficits expanded to $205 million and $56 million, respectively. Interestingly, Tesla’s latest 10-Q implies that Tesla will have going concern accounting language in its 10-K for the year ending December 31, 2017.
Further exacerbating the concerns, the media falsely reported that Elio Motors had missed attending a pre-hearing meeting with the Louisiana Motor Vehicle Commission on January 9, 2017. Elio Motors has put out numerous communications stating that the Louisiana DMV had not notified the company that its attendance was requested.
These news articles (along with the announcement that commercial production is now expected to begin in 2018) weighed heavily on the company’s stock, pressuring it down to the $6 range, after which it rebounded to $10 before closing at $8.50 on Friday.
On the other hand, do not under-estimate the importance of future financings to the ultimate success of Elio Motors. Management anticipates that between $275 million and $300 million will be needed to start production. Thus far, management has been able to successfully finance the start-up of Elio Motors. During the first nine-months of 2016, over $17.2 million was raised through financing activities, including $5.8 million released from restricted cash, almost $5.3 million from customer deposits, $3.7 million from the issuance of common stock and $2.45 million through advances by related parties. In addition, the Regulation A+ offering closed providing $16.92 million.
Elio Motors has submitted an application for an Advanced Technology Vehicles Manufacturing (ATVM) loan for approximately $185 million. The first of four stages has been completed with the Department of Energy confirming that the technical criteria for the loan have been achieved. As part of the evaluation of the loan application, the DOE requires that Elio Motors demonstrate market acceptance for the Elio project. Under revised guidelines that clarify the approval process (which became effective June 24, 2016), the evaluation of market acceptance for start-up companies must “establish to a high level of confidence that adequate future sales will occur.” Specifically, “in all but the most extraordinary circumstances, market studies and non-binding customer reservations to purchase vehicles will not be sufficient to establish adequate future sales.”
Though management believes that the company’s crowd funding and Regulation A+ offering qualify as “most extraordinary circumstances,” to further strengthen the case for the ATVM loan program, the company embarked on an effort to seek binding commitments to purchase the Elioat a locked-in price to further validate market acceptance of the vehicle. Hence, the motivation to set a base price of $7,300 and the incentive ofa 25% discount on their deposit amount toward the final purchase price for those who make a binding commitment.
To date, the ATVM loan program has provided loans to Ford ($5.9 billion), Nissan ($1.45 billion) and Tesla ($465 million). However, if Elio Motors is unable to obtain an ATVM loan, management anticipates funding the company through customer reservations, debt and/or equity offerings and possibly CAFE credits. The company has also identified approximately $1.1 in equipment at the Shreveport plant that it is authorized to sell to raise funds. It should be noted that the company’s reservations represents over $500 million in revenues.
Elio Motors began accepting reservations in January 2013. Reservation deposits, which secure vehicle production slots, range from $100 to $1,000 at four levels ($100, $250, $500 or $1,000). Reservations are offered on a non-refundable or refundable basis with non-refundable reservations have priority over refundable reservations. The reservation deposits have provided significant short-term liquidity for the company. The number of current reservations is 64,008 customer reservations.
A sales discount equal to 50% of the nonrefundable deposit up to $500 per deposit was offered by Elio Motors through May 31, 2016. Thereafter, the discount was set at 25%. Then, on August 12, 2016, the base price of the Elio was set at $7,300 for non-refundable reservation holders until the number of total reservations reaches 65,000 vehicles. The 25% discount of the deposit amount will be applied at the time of the customer’s purchase of a vehicle.
Due to cyclical characteristics of the automobile and motorcycle manufacturing industries, the valuation methodology that consistently has been applicable over time utilizes the Price-to-Sales (P/S) metric. During the up-cycle, profitability (P/E) and cash flow (EV-to-EBITDA and P/CF) approaches tend to overstate the potential of these personal transportation vehicle companies. Conversely, during the down-cycle, negative profitability and, on occasions, negative cash flow causes methodologies based on P/E, EV-to-EBITDA and P/CF to become meaningless.
The mature automobile companies (General Motors, Ford, Honda, Toyota, BMW and Daimler) tend to trade at low P/S ratios, in the 0.1 to 0.8 range with a mean valuation of 0.4 times sales.
A new entrant in the early phases of its life cycles, like Tesla (TSLA), trade at a much higher multiple reflecting the company’s potential. As Tesla ramped up sales to the $204 million level in 2011, its stock traded at 13.9 times sales. Subsequently in 2013, when sales reached slightly over $2.0 billion, the P/S valuation of TSLA was 10.3. Elio Motors with its high growth opportunity is similar to the new entrant comparable.
Since Elio Motors is on the cusp of generating revenues through the sale of the S1, and more importantly, will then be on the threshold of mass commercial production (with over 64,000 reservations in hand), we estimate that in a few years, the annual run rate of the company’s Shreveport plant could approximate 200,000 vehicles with an estimated average sales price of $8,500. Utilizing annual sales of $1.6 billion and with the expectation that Elio Motors can attain a P/S ratio of 5.0 at that time, the share price target would be $151 in 2022. However, to translate that value to a current target price, a net present value (NPV) calculation indicates a share price target of $49.