Elon Musk, co-founder and chief executive officer of Tesla Inc., speaks during an unveiling event for the Tesla Model Y crossover electric vehicle in Hawthorne, California, U.S., on Friday, March 15, 2019.Patrick T. Fallon | Bloomberg | Getty ImagesTesla is rejiggering its car factory in Fremont, California, to make way for production of the Model Y crossover SUV, as well as a refresh of the Model S with a more minimalist interior design and longer-range battery, according to several current and former employees.
These initiatives could raise costs again for Tesla, just as CEO Elon Musk has vowed to review every 10th page of outgoing expenses, personally. But starting up production of the Model Y in 2019 allows Tesla to tap into the growing SUV segment sooner rather than later, while a Model S refresh would help it maintain or grow its share within the declining market for luxury sedans.
The company has barely begun to place orders for new equipment to manufacture the Model Y, employees said. And while Musk has suggested that Tesla would probably make the crossover SUV in Fremont, Tesla hasn't officially announced that preparations in the factory had begun.
Making way for Model Y production in Fremont will require Tesla to combine Model S and Model X production into one line, according to the insiders. These lines at the car plant take up a significant amount of floor space today, at least partly because the S and X are each made with a lot of parts. The Model X is particularly complicated to build — its features include falcon wing doors that open up, rather than out — leading Musk to liken it to a “Faberge egg. ”
In addition to the Model Y, Tesla is planning on a full refresh of the Model S, which employees say will likely include an interior with the minimalist look and feel of the newer Model 3, the same drive units and seats used in the higher-end Model 3, and a battery that delivers 400 miles of range on a full charge.
The company is aiming for a September start of production for that Model S refresh.
Tesla did not respond to multiple requests for comment.
Tesla has recently been canceling factory tours because of “upgrades” being made to the factory, according to Musk, who didn't say exactly what those upgrades entailed.
Meanwhile, production has already slowed on the current S and X models. In the first quarter of 2019, Tesla laid off a portion of its Model S and X production staff and cut hours for those who remained, as CNBC previously reported. Today, Tesla only manufactures the S and X on day shifts during the week in Fremont. There is no weekend or nighttime production of those cars today, according to the current and former employees.
Last week, Tesla cut prices on its Model S by $3,000 and Model X by $2,000, and rolled out a free supercharging incentive to entice customers, causing some analysts to question whether demand is softening for these older, higher-priced models. This follows a set of upgrades in April that improved the driving range and charging speed for both cars.
On investor calls recently, Tesla reiterated guidance that it would deliver 90,000 to 100,000 cars in the second quarter of 2019, and at least 360,000 in 2019. It has not said how many of these would be Model S, X and Model 3 vehicles or, eventually, Model Ys.
Tesla shares fell more than 10% last week on investors' concerns over demand, profitability and the impact of U.S.-China trade clashes on the company. They recovered slightly after an email leaked in which Musk promised that Tesla was on target to meet its second-quarter goals.
WATCH: How Elon Musk's tweets might be affecting the latest price targets for Tesla
VIDEO7:3607:36How Elon Musk's tweets might be affecting the latest price targets for TeslaSquawk Box
Author: CNBC Online news
Autonomous vehicle pioneer doubles down on technology Tesla CEO Elon Musk calls ‘freaking stupid’
Chris Urmson, co-founder and chief executive officer of Aurora Innovation Inc.David Paul Morris | Bloomberg | Getty ImagesA pioneer in autonomous driving is doubling down on a self-driving technology called lidar that uses sensors to help navigate through traffic — just a few weeks after Tesla CEO Elon Musk called the technology “freaking stupid.”
Aurora CEO Chris Urmson said his company bought Blackmore, which develops and manufactures the sensors, for an undisclosed sum. Light detection and ranging technology uses light in the form of a pulsed laser to measure the distance of objects from cars, drones and other gadgets.
VIDEO3:1403:14We aren't ready for autonomous driving: Consumer Reports' FisherPower Lunch “Lidar is critical for developing the safest and most reliable self-driving system, one that can navigate our roads more safely than a human driver,” Urmson said in a statement announcing the acquisition of Blackmore.
Urmson's belief in lidar is important given his track record and reputation developing autonomous vehicles. For years, Urmson ran the Google self-driving car project that was later named Waymo, the autonomous vehicle company which is widely regarded as the leader in driverless cars. Urmson left Google in 2016 shortly before the tech giant rebranded its self-driving car program.
Urmson's endorsement of lidar technology stands in stark contrast to the opinion of the Tesla CEO. In April, Musk was outlining his company's plan to have up to a 1 million robotaxi Teslas that will be completely autonomous.
Close-up of self driving minivan, with LIDAR and other sensor units and logo visible, part of Google parent company Alphabet Inc, driving past historic railroad station with sign reading Mountain View, in the Silicon Valley town of Mountain View, California, with safety driver visible, October 28, 2018.Smith Collection/Gado | Archive Photos | Getty ImagesThe key to that plan is Tesla's Autopilot technology. Tesla's Navigate on Autopilot system relies primarily on cameras that see the road and feed data to the car's computers, which in turn help navigate the car through traffic. Tesla's Autopilot does not use lidar, which is a suite of sensors capable of seeing around cars and trucks to help autonomous vehicles steer through traffic.
“In cars it is freaking stupid. It is expensive and unnecessary,” Musk said of the lidar technology. “Once you solve vision, it is worthless.”
Aurora, Waymo, General Motor's Cruise and other automakers and tech firms find Musk's vision of lidar to be short-sighted and wrong. They've invested heavily in using lidar in the autonomous vehicles and technology they are developing and testing.
In the case of Aurora, Urmson says Blackmore's lidar “can see further with less power, measure velocity instantaneously, and are less susceptible to the challenges associated with heavy weather.
WATCH: Best way to get autonomous vehicles on the road
VIDEO3:2903:29The best way to get self-driving vehicles on the roadCNBC's Meghan Reeder contributed to this article.
Real estate investor makes $11,875 a day in profit on Koenigsegg supercar he owned for five months
When California real estate investor Manny Khoshbin spent $2.2 million on the fastest street-legal car in the world, he had no idea it would also become the fastest-appreciating asset he'd ever own.
“Quickest $1.9 million I ever made,” Khoshbin told CNBC.
Khoshbin is an Instagram influencer with almost 1 million followers who eat up the almost daily car porn he posts. His feed is filled with pics and videos or his personal collection of insanely expensive rides — many of which sit in the middle of his real estate office, which doubles as a private super-car showroom.
Parked next to his 1,400 pound black aluminum desk, which is shaped like a stealth-bomber, are more than a dozen cars, including a one-of-a-kind Pagani Huayra Hermés edition, a Bugatti Mansory Linea Vincero and a full-body exposed carbon matte finish McLaren P1.
But none of those wheels are as fast as the Koenigsegg Agera RS he had delivered 12 months ago. The hypercar set at least five world records for speed for a street-legal car, with the fastest run clocking in at just over 284 miles per hour. Only 25 were ever made during its three-year run and they sold out in the first 10 months of its debut at the 2015 Geneva Motor Show. Khoshbin was in line for the last one, an Agera RS Gryphon that crashed in a test run when the driver lost control at a wet track in Trollhattan, Sweden, in 2017.
Khoshbin's Agera RS Phoenix inside showroomCNBCKoenigsegg said on its Instagram page at the time that it reached “a mutually satisfactory outcome” with Khoshbin “to spec an all-new Agera RS that will blow everyone's mind.”
Khoshbin added some over-the-top upgrades, including a 1,400 horsepower engine, a $300,000 tail wing for increased aerodynamics and lots of 24 karat accents, including the gold-covered exhaust pipe. Parts of the engine and the stripes that run around its entire carbon body are covered in gold.
Gold-exhaust pipe on Agera RS PhoenixCNBCKhoshbin dubbed it the Agera RS Phoenix, rising out of the ashes of the Gryphon. Besides the pricey add-ons, it was the last Agera RS Koenigsegg ever made — making it highly desirable to collectors.
“I wasn't thinking about selling it. Honestly, I was buying to keep it permanently, but I got an offer I couldn't refuse,” Khoshbin told CNBC.
Rear view of the gold-accented Agera RS Phoenix and $300k tail wingCNBCHe says a mutual friend connected him to a prospective buyer who, like Khoshbin, had an appreciation for carbon fiber dripping in gold.
“He had another Koenigsegg in carbon and gold and this was a perfect match to the other in his collection,” Khoshbin said. Just like the Agera RS, the deal moved super fast. It took about a week to negotiate a price, he said. “I said $5 million, we negotiated and landed at $4.1 million.”
Manny Khoshbin and 1,400 pound black aluminum office desk@mannykhoshbin on InstagramIn just over five months, Khoshbin pocketed $1.9 million in profit — which works out to roughly $365,595 a month, $11,875 a day or $495 an hour.
While the real estate investor says he's made millions of dollars buying and selling buildings, he's never made this much money in so little time.
Soon after closing the Phoenix deal, he used the cash to buy a Bugatti Veyron Grand Sport Vitesse Rembrandt with just 770 miles on the odometer. The bronze-colored beast, which can go from 0 to 60 in a mind-blowing 2.6 seconds, was a bargain at $2 million. The car's previous owner, a Texas billionaire, bought the Bugatti new in 2014 for just north of $3 million.
Khoshbin at dealership eyeing his Bugatti Rembrandt with Nick Jones, General Sales Manager of Bugatti Long Beach@mannykhoshbin on Instagram “I love cars, but at the end of the day you got to be strategic and smart with your money,” said Khoshbin.
He's passionate about rare cars and says investing in them is more fun than other collectibles like art. “You can't take your Picasso to lunch, but you can drive your Bugatti to the restaurant,” he said.
When I asked Khoshbin if there's a car in his collection that he won't sell he answered without skipping a beat.
“No, the only thing I won't sell is my wife and kids,” he said.
His car obsession continues in the meantime. He's already put a deposit on a replacement for the Phoenix, ordering a Koenigsegg Jesko with 1,600 horsepower that will cost him around $3 million.
Manny Khoshbin with wife Leyla Milani and Pagani Huayra Hermés Edition@mannykhoshbin on Instagram
Shares leap higher after Fiat Chrysler and Renault propose merger
VIDEO5:1405:14Fiat Chrysler submits proposal for merger with RenaultSquawk Box EuropeFiat Chrysler and Renault, two automakers looking to curb costs producing vehicles and pool resources for developing the next generation of automobiles, are planning a merger to create the world's third largest automaker.
According to a statement from Fiat Chrysler Automobiles, the combined business would be owned 50/50 between shareholders of FCA and Groupe Renault. A board of governors would hold a majority of independent directors.
Shares in Fiat Chrysler and Renault jumped 13% and 11.5% respectively.
The merger still requires approval by the boards of both automakers.
The joint organization would produce estimated sales of 8.7 million vehicles a year and would be considered the world's third largest car manufacturer.
Fiat Chrylser said the combined entity would generate savings of 5 billion euros annually ($5.6 billion) and be “carried out as a merger transaction under a Dutch parent company.”
The press release from Fiat Chrysler added that there would be no plant closures as a reults of the tie-up and the union should provide an opportunity to lead in the development of electric and autonomous vehicles.
During Fiat Chrysler's most recent earnings call, CEO Mike Manley was asked about the possibility of merging with another automaker and told analysts. “We are going into an environment where there are going to be opportunities.”
Fiat Chrysler's partnership with Renault is completely separate from the Nissan-Renault-Mitsubishi alliance.
For Renault, the partnership with FCA renews speculation the French automaker's alliance with Japan-based Nissan may not last.
The two companies hold stakes in each other, but that alliance has been strained since the arrest of Nissan-Renault CEO Carlos Ghosn late last year. Ghosn has been charged in Japan with committing financial crimes while serving as CEO of Nissan, charges Ghosn and his lawyers vehemently deny.
Last year, Fiat Chrysler sold 4.85 million vehicles worldwide, with the vast majority being sold in North America where Jeep and RAM Trucks are two of the most popular brands. Meanwhile Renault sold 3.81 million vehicles in 2018, with most of its business happening in Europe.
Fiat Chrysler and Renault are in advanced talks to merge the automakers
FILE PHOTO: The logo of FIAT carmaker is seen on a vehicle in Cairo, Egypt, May 19, 2019. Picture taken May 19, 2019. REUTERS/Mohamed Abd El Ghany/File PhotoMohamed Abd El Ghany | ReutersFiat Chrysler and Renault are in advanced talks to merge the two automakers.
Sources say the talks, which have been happening over the last several weeks, have picked up speed in recent days and could lead to an announcement regarding a merger or partnership as soon as tomorrow.
The CEOs of both automakers have made it clear they are open to partnerships with other automakers that would give them the economies of scale to further cut costs both in terms of manufacturing as well as in developing vehicles. The move could be especially beneficial in Europe where auto sales overall are under pressure.
During Fiat Chrysler's most recent earnings call, CEO Mike Manley was asked about the possibility of merging with another automaker. “We have made it clear in the past that we want to be active and proactive to develop our business and improve the value for our shareholders,” Manley told analysts. “We are going into an environment where there are going to be opportunities.”
Meanwhile, under former CEO Carlos Ghosn, Renault was increasingly interested in a full merger with Nissan, its partner in an alliance that has delivered mixed results. When the two automakers first formed their alliance in the late 1990s, the combination helped Nissan cut losses and ultimately become a highly profitable automaker. These days there's growing tension between Nissan and Renault since the arrest and detention of Ghosn late last year. Japanese authorities have charged Ghosn with a number of crimes relating to his tenure as CEO of the Nissan-Renault alliance.
Whether Fiat Chrysler ultimately joins the Nissan-Renault alliance is unclear.
A partnership between Fiat Chrysler and Renault would also help the automakers pool resources for the development of electric and autonomous vehicles. Renault's EV program is considered to be more advanced than Fiat Chrysler's, but neither automaker is considered a leader in electric vehicles.
A spokesperson for Fiat Chrysler would not comment when reached by CNBC. Renault could not immediately be reached for comment.
Fiat Chrysler and France’s Renault are in talks to form a partnership
A row of Fiat Chrysler Automobiles (FCA) 2017 Crysler Pacifica minivan vehicles are displayed for sale at a car dealership in Moline, Illinois, on Saturday, July 1, 2017.Daniel Acker | Bloomberg | Getty ImagesFiat Chrysler and Renault are in discussions to form a partnership, a source familiar with the talks told CNBC.
The Italian-American and French automakers are looking at a number of opportunities that would have the companies working together in the future, the source said.
It is unclear if a partnership between the two automakers would lead to Fiat Chrysler eventually joining the Nissan-Renault-Mitsubishi alliance.
Fiat Chrysler declined CNBC's request for comment. Renault could not be immediately reached for comment.
The Financial Times first reported the story.
Back in March, The Financial Times reported that Renault planned to take up merger talks with Nissan within the year, and then potentially acquire Fiat Chrysler.
Fiat Chrysler's chief executive, Mike Manley, previously told the FT: “If there's a partnership, merger, relationship that makes us stronger, then I'm absolutely open to looking at it.”
If Fiat Chrysler is added to the Renault-Nissan-Mitsubishi Alliance, which dates back to 1999, it would become the largest global carmaker, with 15.6 million combined sales a year. The current leader, Volkswagen, sold 10.8 million last year.
Read Tesla CEO Elon Musk’s email to employees: Company averaged 900 Model 3s per day this week
Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019.Frederic J. Brown | AFP | Getty ImagesTesla shares rose more than 1% Thursday after CEO Elon Musk sent an e-mail to all employees saying the electric vehicle maker is close to reaching its target production numbers for the Model 3 this quarter.
The e-mail's optimistic tone helped Tesla shares turn positive for the first time in seven days. The company added over $500 million to its market cap, reaching around $34.6 billion, in early trading on Thursday.
Here's what Musk wrote to employees:
Subj. Exciting Goal!
Date: May 22, 2109
To: Everbody
As of yesterday we had over 50,000 net new orders for this quarter. Based on current trends, we have a good chance of exceeding the record 90,700 deliveries of Q4 last year and making this the highest deliveries/sales quarter in Tesla history!
In order to achieve this, we need sustained output of 1,000 Model 3's per day. Almost all parts of the Model 3 production system have exceeded 1,000 units on multiple days (congratulations!) and we've averaged about 900/day this week, so we're only about 10% away from 7,000/week.
If we rally hard, we can do it!
Thanks for your hard work
Analysts had been losing confidence in Tesla's stock during the past week as the company entered cost-cutting mode. In an email to employees obtained by CNBC last week, Musk stressed the need for “hardcore” measures to cut spending.
Citi analysts wrote Tuesday that Tesla's shares could fall more than 80% to $36, citing “lingering demand/FCF (free cash flow) concerns.” In a private call with Morgan Stanley clients Wednesday, Morgan Stanley research analyst Adam Jonas said he was skeptical about the company's ability to grow, CNBC reported.
“Tesla is not really seen as a growth story,” Jonas said on the call, which CNBC heard in a recording. Today, “It seems like a distressed credit and restructuring story.”
Loup Ventures co-founder Gene Munster gave the stock its latest downward revision Thursday. Munster expected the company would miss its delivery expectations this year especially as trade tensions drag on between the U.S. and China. He lowered 2019 delivery estimates about 10% to just 310,000 vehicles compared to guidance between 360,000 and 400,000.
While Musk's email to Tesla employees shed a light on production progress, logistics remains another challenge for the company in meeting its second-quarter delivery goals.
In the first quarter of 2019, Musk said the increase in overseas business stressed the company's logistics operations. Half of Tesla's global deliveries happened in the final 10 days of the first quarter.
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Watch: How Elon Musk's tweets might be affecting the latest price targets for Tesla
VIDEO7:3607:36How Elon Musk's tweets might be affecting the latest price targets for TeslaSquawk Box
Don’t expect Apple or Amazon to buy Tesla, Morgan Stanley analyst warns investors
Elon MuskMike Blake | ReutersIn an invitation-only call with institutional clients of Morgan Stanley on Wednesday, research analyst Adam Jonas — a long-time Tesla bull — expressed skepticism about the electric vehicle maker and said not to count on a buyer like Apple to bail the company out.
“Tesla is not really seen as a growth story,” Jonas said on the call, which CNBC heard in a recording. Today, “It seems like a distressed credit and restructuring story.”
Some details of the call were previously reported by Business Insider.
Jonas spent some time on the call responding to the hope that a big tech company like Apple or Amazon might buy Tesla. in a CNBC interview on Tuesday, analyst Craig Irwin of Roth Capital Partners rekindled the rumor that Apple once made a bid for Tesla.
But Jonas poured cold water on the notion of a big tech acquisition today.
He explained, “For risk mitigation and liability containment, they may not want to expose themselves to the unlimited liability of being involved in owning a business where occasionally a car catches on fire, takes down a building, or accidentally kills a pedestrian or passenger, things that happen. The auto industry has an ugly side to it. The roads are very dangerous. There's a lot of stored energy in a vehicle. And the regulatory environment [around autonomous cars] has not had time to cure yet.”
Jonas acknowledged that Apple has interest in transportation (as do Amazon and other big tech firms). But Morgan Stanley's tech researchers, he said, don't expect Apple to have a service or related hardware devoted entirely to transportation until the 2030s.
He added, “Perhaps those big tech firms don't want to expose themselves to that up front. And moreover they realize the autonomous race is more of a marathon where over a 10- or 20-year period you collect real world miles. There may be other ways to do that besides owning a full-stack, awesome, great auto company.”
SpaceX to the rescue?Apart from shooting down the idea of a white knight, Jonas also expressed skepticism about the company's current state.
“In late 2018, demand was exceeding supply, cash flow was strong, there was a ton of excitement around the Model Y,” Jonas said. “Today — supply exceeds demand, they are burning cash, nobody cares about the Model Y.”
Finally, Jonas told investors that, given the precedent of Tesla's acquisition of SolarCity, there's a possibility Musk could use his 54% stake in SpaceX, a company that has a post-money valuation of $31.5 billion, to eventually collateralize Tesla.
“There's a precedent for Elon Musk to think across his portfolio of companies,” he said.
Jonas said near-term, Wall Street is expecting Tesla to deliver just 70,000 vehicles in the second quarter of 2019. While he and Morgan Stanley have a more optimistic estimate of 82,000 vehicles, that still falls short of Tesla guidance. The company said it would deliver 90,000 cars this quarter, and wrote in a first-quarter shareholder letter:
“Although we are driving towards higher internal goals, we reaffirm our prior guidance of 360,000 to 400,000 vehicle deliveries in 2019, representing an increase of approximately 45% to 65% compared to 2018.”
Tesla and Morgan Stanley did not immediately respond to requests for comment on the call.
Morgan Stanley was a lead underwriter in Tesla's $2.7 billion offering of stock and convertible notes, which closed earlier this month. The week of the offering, Morgan Stanley said it saw the funding as a 12-month bridge to help the company gain a foothold in China.
Tesla's stock is down 15% since last Thursday, and dropped 6% on Wednesday to under $193. The slide began last week after an e-mail surfaced in which Tesla CEO Elon Musk urged employees to cut spending and told them he would personally oversee outgoing expenses.
That news was followed by a bad Consumer Reports review of Tesla's new Autopilot Navigate feature in its Model 3 electric sedans. The stock may also be reacting to ongoing trade tensions between the US and China, as Tesla has staked its future on building and selling its cars there.
WATCH: Morgan Stanley says Tesla could hit $10 if this happens
VIDEO6:1906:19Tesla could hit $10 if this happensFast Money
A major Chinese automaker postpones its US launch as trade war drags on
Daniel Acker | Bloomberg | Getty ImagesGAC Motor, one of China's largest carmakers, has postponed its launch in the U.S. because of the ongoing trade war between the world's two-largest economies, a company executive said Tuesday.
The automaker, headquartered in Guangzhou in southern China, said its entrance into the U.S., which was anticipated for this year, will be postponed.
“The current relationship between the U.S. and China, the trade war, the relationship is uncertain” said Hebin Zeng, president of international at GAC Motor. “We postponed the plan to enter the North American market.”
Zeng declined to give a specific timeline on when GAC could enter the U.S.
“In terms of when we will go into the market, we will have further discussions depending on the changes of circumstances,” he said.
Geely is the only Chinese carmaker that sells in the U.S. through the Volvo Car brand that it owns.
GAC has been expanding into several international markets, particularly in the Middle East.
Apple bid to buy Tesla in 2013 for $240 a share, analyst says
GP: Elon Musk, chief executive officer of Tesla Inc., speaks during an event at the site of the company's manufacturing facility in Shanghai, China, on Monday, Jan. 7, 2019.Qilai Shen | Bloomberg | Getty ImagesWith Tesla's stock sinking to around $200 this week, Craig Irwin, an analyst at Roth Capital Partners, told CNBC on Tuesday that the electric car company could have sold to Apple six years ago for a significantly higher price per share.
“Around 2013, there was a serious bid from Apple at around $240 a share,” Irwin said in an interview on “Squawk Box. ” “This is something we did multiple checks on. I have complete confidence that this is accurate. Apple bid for Tesla. I don't know if it got to a formal paperwork stage, but I know from multiple different sources that this was very credible.”
Apple and Tesla did not respond to requests for comment.
Tesla is down more than 38% in 2019, to a share price of $197.76 at the start of trading Tuesday. The stock has plunged 46% from its high in August, when CEO Elon Musk said he had “funding secured” to take the company private at $420 a share.
Knowing there was a “very credible” bid on the table in 2013 keeps Irwin from being more bearish on the stock today.
“If Apple had interest then, they would probably have interest now at the right price,” he said.
VIDEO6:3806:38Watch a Tesla analyst weigh in on Morgan Stanley's revised bear caseSquawk BoxIrwin said that Apple's car project continues to develop in secret, and that the company is building large “dry rooms” in California to do something related to automotive batteries. According to Irwin, those rooms are designed to handle the environmental containment required for the production of lithium-ion batteries.
“My checks are Apple is building several dry rooms, including a couple that are much larger than what you would need for watch or consumer product battery development,” Irwin wrote in a follow-up email.
Irwin is not the first to suggest that Apple and Tesla have held discussions. The San Francisco Chronicle reported in 2014 that Musk met with Apple's head of mergers and acquisitions and most likely CEO Tim Cook as well.
If the two companies were to combine, it would be by far Apple's largest acquisition ever and one of the biggest in the history of the technology industry. Tesla's current market cap is about $36 billion. The most Apple has ever paid is $3 billion for Beats Electronics in 2014.
For a deal to take place Apple would face the question of what to do with the outspoken Musk and his tendency to gain attention for many of the wrong reasons, whether it's tweeting out material nonpublic information or smoking weed on a podcast.
“Regarding the acquisition: my understanding is Apple wanted Elon Musk to step away, and that was a deal killer,” Irwin said in the email.
Correction: In August, Tesla CEO Elon Musk said he had “funding secured” to take the company private at $420 a share. An earlier version mischaracterized his statement.
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