Tesla Motors Inc (TSLA) CEO Elon Musk Tweets Back At Bloomberg

Tesla stockBlomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk tweeted that he plans to work on an environmental impact blog post this weekend to disprove an article which appeared in Bloomberg Businessweek today. Musk calls the article “BS” and “beyond ridiculous.”

Tesla’s Musk takes on the media… again

Musk has been anything but shy about addressing things in the media which either aren’t right or are misunderstood. In fact, some would say he’s a PR nightmare because he doesn’t seem to have an internal filter. But anyway, it will be very interesting to see what he has to say in his post. It will probably be a good one. If the Bloomberg article is incorrect, then it needs to be disproven.

His promise of a post explaining away Bloomberg’s article comes the same day he accused New Jersey Gov. Chris Christie of making a “backroom deal” regarding legislation which banned Tesla’s from being sold in the state.

What Bloomberg has to say about Tesla and graphite

The issue raised in the article has to do with the graphite mines in China. Tesla Motors Inc (NASDAQ:TSLA)’s batteries use graphite, as do the Plug-in Prius hybrid made by Toyota and a number of electronic cars. The batteries in Apple Inc. (NASDAQ:AAPL)’s iPhones and other electronic devices also use graphite.

Unfortunately, China’s graphite mines have been linked with the major pollution problems the nation has been battling for some time. As a result, China has been shutting down graphite mines and processors, thus cutting down on the commodity, just as demand for it is rapidly rising.

Tesla’s gigafactory could strain supply

In order to battle the battery supply constraints Tesla Motors Inc (NASDAQ:TSLA) has been dealing with, the automaker is planning to build a gigafactory. Experts interviewed by Bloomberg estimate that the factory could double the demand for graphite, which would mean six new minutes would have to open up. However, the opposite is happening, with up to 55 graphite operations being suspended in Shangdong province. That area alone controls 10% of the global graphite supply. Many expect that the Chinese government could close even more mines.

However, Australia’s Uley graphite mine is scheduled to reopen this month. The mind had been closed for over 20 years because China’s mines caused reduced graphite prices.

Other problems in China

Processing graphite into its usable form also causes pollution in the form of waste water, according to Bloomberg. Mines use hydrochloric acid to process the graphite, and if mines are poorly managed, the waste water gets into the environment where it can harm every form of life.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)



About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

9 Comments on "Tesla Motors Inc (TSLA) CEO Elon Musk Tweets Back At Bloomberg"

  1. Because you say it, it must be true. I’m sold…want my wallet too? Just ask. You can believe what I say as much as I believe you.

  2. Please sign this petition.
    We need 100,000 signatures by Apr 10. We have 3,224 as of Mar 17, 6:20pm PDT

    “Inform New Jersey that markets should be free for Tesla Motors and for everyone”

    “We ask that you inform Governor Chris Christie and the New Jersey Motor Vehicle Commission to overturn their hastily decided rule to ban Tesla from selling direct to consumers. The backroom negotiated amendment was put in place to protect dealers and not protect the people of New Jersey. In a free market, the people should decide for themselves.”

    https://petitions.whitehouse gov/petition/inform-new-jersey-markets-should-be-free-tesla-motors-and-everyone/ptHTHYMP

  3. ‘Tesla, Apple, Panasonic and Sony DECLINED to comment on the potential effect of higher graphite prices for its batteries and production practices in China.’ By Elisabeth Behrmann – Bloomberg
    “BS” MUSK?
    Globalized commodities are priced according to demand. For example; the price of U.S. domestic crude oil compared with Brent. Wish our oil could be $45 per barrel, in the Energy Independent USA.
    “BS” Answer Bloomberg’s question!

  4. I know right, sucks that my 3000 investment turned into 30000. worst decision I ever made!!

  5. Yeah, because we all know gasoline cars are going to be around forever!!
    (not)

  6. Musk is a lunatic. People investing in Tesla are gonna lose big

  7. It’s all Indians doing the writing on this site.

  8. Morons…

  9. You really need to proofread your articles. In one instance you write “minute” instead of “mine”, and in another you write “mind”. Childish mistakes that lower your credibility.

Leave a comment

Your email address will not be published.