Tesla: The Big Short and Asking for Cash Back

Tesla is coming out with earnings on August 1st, tomorrow. It seems like a nice time to write on a couple interesting stories that popped up recently.

Via CNBC we learn that Steve Eisman of "The Big Short" is now a bear on Tesla stock:

The portfolio manager called the company's founder Elon Musk a "very smart man" but raised concern about the CEO's ability to follow through on lofty ambitions. "He's got execution problems," Eisman, portfolio manager at Neuberger Berman, said in a Bloomberg Television interview Friday. "He's nowhere in autonomous driving, as far as I can tell, and big competition is coming in his space next year."

I think there is no doubt that Musk is a very smart man. He's built 3 electric vehicles. But then he's also a person who likes to over-promise. And then there is the building cars in under a tent situation.

Libya: Problems on the West Front and Money

Most of my recent write-ups on Libya has focused on the east. Here's something that recently happened in the oil fields in the western part of Libya -- though nothing like the battle that occurred in the eastern terminals.

Via E & P Magazine:

Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bbl/d) on July 14 after two staff were abducted in an attack by an unknown group, the National Oil Corp. (NOC) said . . . “Four of the station staff were initially kidnapped, but two of them have been since released,” it said. “Oil wells in the surrounding area have been shut down as a precaution, and all other workers evacuated.”

Who wants to bet that this unknown group abducted the four station staff due to a desire for a monetary payoff from the oil profits?

US Shale: Other Topics Other Than Supply Growth

One can't lie, the Permian Basin is booming. Per the Dallas News:

The oil industry has such a ferocious appetite for workers that it'll hire just about anyone with the most basic skills. "It is crazy," said Jazmin Jimenez, 24, who zipped through a two-week training program at New Mexico Junior College in Hobbs, about 100 miles north of Midland, and was hired by Chevron Corp. as a well-pump checker. "Honestly I never thought I'd see myself at an oilfield company. But now that I'm here -- I think this is it." That's understandable, considering the $28-a-hour she makes is double what she was earning until December as a guard at the Lea County Correctional Facility in Hobbs. 

US Shale Forecast: IHS Markit

Via the Oil and Gas Journal, IHS Markit forecasts that Permian basin oil production will double between 2018 - 2023. Per the article, that would mean oil production will hit 5.4 million bpd. This would make the Permian basin production higher than every OPEC nation outside of Saudi Arabia.

There is an interesting quote from the article:

Permian oil production already is a major force in world supply growth, the report said, adding that IHS Markit analysts expect a “stunning” level of growth that will comprise more than 60% of net world production growth.

Libya: Part 4 - LNA backs down on oil grab

I previously wrote a couple weeks back that the LNA decided to lay claim on the oil terminals of Ras Lanuf and Sidra. The terminals were originally run by the National Oil Corporation (NOC) that reports to Tripoli. My speculation was that the take-over had to do with control of the oil money.

Via the Guardian it was reported that Khalifa Haftar (LNA) backed down and handed control back to the NOC. Here are some points:

1. The US did not back the LNA move.

2. Various other allies including France, Egypt and the United Arab Emirates did not back the take-over.

Tesla: Break and Roll Test

I'm not all that positive on Tesla. I just have to believe that other car companies will start to take their market share. Also, recent news of them building cars in a tent just seems extreme. And I can't help but wonder if as a consumer it makes sense to be buying a car that was part of a stretch goal production target. Yet, when it was reported that Tesla was skipping the "brake-and-roll" test  (CNBC) I had to admit I was wondering why it was being made into such a big deal.

Tesla has decided to skip a "brake-and-roll" testing step in the manufacturing of its Model 3 vehicles. . . .“Every car we build goes through rigorous quality checks and must meet exacting specifications, including brake tests. To be extremely clear, we drive *every* Model 3 on our test track to verify braking, torque, squeal and rattle. There are no exceptions.”

Sweden - Part 2: Gang Violence, Immigration and Sweden Democrats

Reuters has an article up that perhaps doesn't provide much new information about Sweden then the post I did back in March. This is my part 2 of looking into the article.

1. It is mentioned that the police believe there are 3 or 4 gangs operating in Malmo. Okay, you're the police, and you can't figure out if it is 3 or 4 gangs?

2. In Malmo, 45 percent of the population are immigrants. In the suburb of Rinkeby, outside Stockholm, 91 percent are immigrants or children of immigrants.

Sweden - Part 1: Gang Violence and Immigration (Reuters)

Reuters has an article up that perhaps doesn't provide much new information about Sweden then the post I did back in March, but let's see what's going on. This post looks at a couple contractions I see in the article.

1. The article seems to have a couple contradictions -- though that could be based on me not properly reading the article or the article not providing necessary support information.

2. First contradiction - the article starts out with this quote:

Dozens of people have been killed in the past two years in attacks in the capital Stockholm and other big cities by gangs that are mostly from run-down suburbs dominated by immigrants. 

But then later states:

. . . official statistics show no correlation between overall levels of crime and immigration.

LIbya: Part 3 -- Eastern Libya and Oil Grab

After regaining control of the Ras Lanuf and Sidra oil terminals, the Libyan National Army (LNA) laid claim to the terminals and transferred responsibility to an entity based in Benghazi. Previously, responsibility for running the terminals was based in Tripoli via the National Oil Corporation (NOC).

The Government of National Accord (GNA) based in Tripoli responded. Per Aljazeera:

"The oil revenues are sent to the Central Bank of Libya to meet all Libyans' needs, solve crises and manage the affairs of all areas in the country without discrimination," the statement said. 

The eastern-based authorities made a similar attempt to bypass the Tripoli government in April 2016, but their planned sale of 300,000 barrels per day of crude was stopped by the UN Security Council.