• 1 hour Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 3 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
Oil Stocks To Watch As Geopolitical Risk Mounts

Oil Stocks To Watch As Geopolitical Risk Mounts

Oil market sentiment has turned…

Oil Quality Issues Could Bankrupt Venezuela

Oil Quality Issues Could Bankrupt Venezuela

Falling Venezuelan oil quality could…

Tesla Targeted by SEC, Cancels Car Buyback Program

Tesla charger station

Tesla has been making headlines these days because of the investigations into two accident involving Tesla cars, one of them with a fatal result. The company however may have to deal with much bigger problems than whether its autopilot is safe or not very.

Reuters reports that the electric vehicle maker has discontinued a car buyback program that guaranteed buyers they could resell their Model S or Model X to Tesla within three years of purchasing them at no less than 50 percent of the original price.

The news comes on the heel of a warning that the sales target for the second quarter will again miss projections. In the first quarter of 2016, the carmaker shipped 14,820 cars instead of the projected 16,000 cars. The company said at the time that the discrepancy was due to a major shortage in component parts, but that issue was solved before March.

The second-quarter missed sales target warning that Reuters says Tesla posted earlier this month may have more to do with disappointing demand than anything else, as Tesla also cut the base price for the Model S and launched a lower-price version of the Model X.

Related: In World Of $50 Oil, Shale Beats Deepwater

Tesla has announced that over the next 12 months it has enough cash to buy back just 4,209 cars – which amounts to US$192.4 million in total at US$45,711 per car, Reuters has calculated. At the same time, at end-March this year, the total liabilities Tesla had accrued from its buyback guarantee program US$1.58 billion.

In addition to the investigation that focuses on its autopilot program, Tesla is also the target of a Securities and Exchange Commission probe that wants to find out if the company concealed the information about the fatal crash from its investors when it placed US$1.4 billion in new shares in May.

Now, sales are continually falling short of expected demand, and cash is tight. Amid all this, Tesla is planning to acquire SolarCity.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Stock Shaman on July 14 2016 said:
    It's Tesla this Tesla that. Folks there is a paradigm shift in public transportation going on right now and all you write about is Tesla. Did you know that the Giga 1 Tesla battery plant when it hits 500,000 units will effectively suck up all the lithium mined that year? Did you know that there are another 11 plants being built around the world right now and they will all be operational by 2020? Did you know that Germany, Sweden, Finland and Norway all have legislated the personal fossil fuel car out of existence by 2030? That's right they are going full electric! VW is coming with 30 models and building a lithium battery plant for $11 billion. Did you know that Ford has ponied up $4.5 billion for it's EV plan? A company like Ford or VW can dial up 500,000 ev's in a year without breaking a sweat. Canada now stands at 1% Ev' sales and the buzz I hear is Canada will follow suit..Why? Paris Accord. That’s why the Europeans are going electric to keep too the Paris accord! They are flying electric planes now and developing electric passenger planes (Air Bus) Yet, all you want to read and write about is Tesla,Tesla,Tesla, I feel like a Brady bunch TV. show Marsha x 3. last year $ALB bought the only lithium mine in North America for $6.2 Billion! Since the purchase their stock has gone from $42 to an all-time high of $86 today. They mine water! pull Lithium saturated water from a underground aquifer spray it out over the desert ,let it dry into salt and extract the lithium from the salt. Check out this co. as they may have just discovered what might be "the perfect lithium basin" 120 miles from the Tesla Giga 1 lithium battery plant.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News