Tesla’s Elon Musk Tweets “Supercharger Announcement Pushed to Next Week. Something Else This Week” (UPDATE)

4 years ago by Eric Loveday 21

Something Must be More Important Than the Supercharger Announcement...Wonder What Is?

Something Must be More Important Than the Supercharger Announcement…Wonder What Is? (May 14 Tweet)

There’s a big Supercharger announcement coming from Tesla Motors, which we assume will be plans for expansion of the now-limited network, but ahead of that announcement is “something else,” according to a recent tweet from Tesla CEO Elon Musk.

What’s this “something else?”  Perhaps Musk’s earlier May 9 tweet (see below) foreshadows what’s in the works at Tesla.

Hmm...

Hmm…

The Supercharger announcement will conclude Tesla’s lengthy list of notifications/updates for now, but Tesla is slotting in a surprise announcement, which will likely pour out this Friday.

There’s been speculation that Tesla will announce something related to battery swapping and even talk of some sort of range-extending battery that fits in the Model S’ “frunk” (front-mounted trunk), but as of right now, both of those guesses lack evidence that would tie either into this week’s announcement.

So, what’s coming next?  Any guesses?

UPDATE: Nothing too exciting, actually.  That is, unless stocks are your game.  See press release below (we bolded a couple of the highlights):

Tesla Motors Announces Offerings of Common Stock and Convertible Senior Notes

Elon Musk to Lead Common Stock Offering; Tesla Intends to Pay Off Department of Energy Loan with Interest

Palo Alto, CA – May 15, 2013 — Tesla Motors, Inc. (NASDAQ: TSLA) announced today offerings of 2,703,027 shares of common stock and $450 million aggregate principal amount of convertible senior notes due 2018 in concurrent underwritten registered public offerings. In addition, Tesla has granted the underwriters a 30-day option to purchase up to an additional 405,454 shares of common stock and $67.5 million in aggregate principal amount of the notes.

In addition, Elon Musk, Tesla’s Chief Executive Officer and cofounder, intends to purchase shares of common stock at the same public offering price for an aggregate purchase price of $100 million. Of this amount, approximately $45 million would be purchased in the common stock offering, and approximately $55 million would be purchased directly from Tesla in a subsequent private placement due to the waiting period requirements of the Hart-Scott-Rodino Act.

The aggregate gross proceeds of the offerings, including the options granted to the underwriters, and the private placement is expected to be approximately $830 million. Tesla intends to use the net proceeds from the offerings to prepay Tesla’s outstanding loan from the United States Department of Energy, pay the cost of convertible note hedge transactions and for general corporate purposes.

The notes will be convertible into cash and, if applicable, shares of Tesla’s common stock. The interest rate, conversion price and other terms of the notes are to be determined.

In connection with the offering of the notes, Tesla intends to enter into convertible note hedge transactions and warrant transactions which are generally expected to prevent dilution up to 100% over the offering stock price. In connection with establishing their initial hedge of the convertible note hedge and warrant transactions, the hedge counterparties or their affiliates expect to enter into various derivative transactions with respect to our common stock concurrently with or shortly after the pricing of the notes, including with certain investors in the notes.

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21 responses to "Tesla’s Elon Musk Tweets “Supercharger Announcement Pushed to Next Week. Something Else This Week” (UPDATE)"

  1. kdawg says:

    Car swapping. You rent a Tesla, drop it off at a dealer when its empty, and take off in a full one. (just a SWAG)

    1. Eric Loveday says:

      @kdawg…That was my thinking too…Makes a lot more sense than battery swapping.

    2. Bonaire says:

      Good swag. That came to me when I was reading the story.

      Drop -n- Swap.

      Roll in with your Model-S and get a loaner while in town – you charge your car while tooling around in the rental – come back and drive off in your fully charged car.

    3. Brian says:

      I was thinking along these lines, but that’s far from “faster than you can fill a gas tank” if you consider the fact that this will be done only on road trips. On road trips, one tends to take a lot of baggage. It would then take a while to repack the new car.

      But you are probably right.

  2. David Murray says:

    Ugh… I hope it is not battery swap. I wish they’d put that idea to bed. (they being an ambiguous term for anyone who supports it) as it is a horrible idea.

    Much like kdawg said.. I’ve made the case many times that from a business prospective it would actually be cheaper to swap the whole car out along the way at a station somewhere.

  3. zilm says:

    10k Model S this week

    1. Josh says:

      +1. I agree that this could be the something else announcement.

    2. Anderlan says:

      1k. 1k would be slightly more than double the 400 units a week needed for 20k in a year. 10k would be a 20x production speed increase. Maybe, if they’ve been seriously filling the rest of the plant and hiring a bunch of people without anyone noticing. That would be heartening with regard to gearing up for simultaneous X and S production, on the path toward 100,000+ Bluestar, anyway.

      1. Josh says:

        zlim and I were referring to 10k total Model S deliveries since the beginning of production, which by most estimates should have occurred this week. We were both wrong though, that is too tame for a Tesla announcement.

  4. Schmeltz says:

    That was the first time I heard about the idea of a range extending battery pack to put in the “frunk”. I like that idea better than anything else I’ve heard to date.

  5. Could be says:

    Could be an second stock offer. Tesla needs more funds to keep the R and D going. Their stock is at a good position right now where it wouldn’t be diluted too much.

    1. Eric Loveday says:

      Right on…Update Coming

  6. GreenDay says:

    Stock Split!

  7. GreenDay says:

    No way it’s battery swap.
    Have you looked at the sardine can they are in?
    http://3.bp.blogspot.com/-JSCZzvn0ty4/T49WQF6A2zI/AAAAAAAAAaA/QLb6T1QuSn8/s1600/frame.JPG

    1. Eric Loveday says:

      Yes…we agree…battery swap not possible without some major alterations…we may have miss counted, but we think 17 bolts hold that pack in place and we know its an integral structure of the vehicle

    2. Josh says:

      Battery swap in less than 5 minutes was one of the design criteria for the Model S. One commenter on the TMC forum said a service tech swapping his 12V battery said it was harder than swapping out the main battery. The tech had swapped “many” main packs in his 2 months working for Tesla. (not sure why they had to swap some many main packs)

      I am not sure that is what Tesla is going to do from a business standpoint, but from a technical standpoint, supposedly it is possible.

      1. Eric Loveday says:

        Yes…it’s possible in less than 5 minutes…but word going around the web is that it’ll be done at a public station…not at Tesla service centers…we don’t see that as possible right now

  8. MrEnergyCzar says:

    Ready charged fully loaded Tesla’s waiting to exchange at all supercharger locations…

    MrEnergyCzar

  9. Cavaron says:

    Does anyone remember “Back to the Future” and how they “charged” the car in the first movie? You can charge 14.235 Model S (85kw) with 1.21 gigawatt 🙂

    kidding

  10. Dan Frederiksen says:

    Wow, that’s the ponzi scheme approach I advocated for TSLA : )
    offering more stock to pay off the loan so as to give the (false) impression of an even more successful business despite never having done the slightest bit of profit.
    Amazing 🙂

  11. John Bingham says:

    We know that it’s a supercharger announcement and we know that the clue is “under your nose” for Tesla drivers. Most likely there’s more software to be revealed from the recent updates that hasn’t been enabled yet, but will soon be another aspect of the console display (under your nose!).

    Superchargers currently run at up 90 or 120kW, but a second car at the same station may have to take a lower rate of charge and, as far as I know, the second car will not automatically receive the full rate even if the first car finishes charging.

    With more communication between the car and the supercharger that problem can be resolved, and it may even be possible to have faster charging from the supercharger as well if there is additional communication with the battery management system in the car. The big problem for both of these to happen is the maximum total current draw from the supercharger station.

    Maybe each station will have additional batteries (or supercapacitors) that can be charged from the solar panels/utility grid to keep the average power drain within reasonable limits, but then be able to “dump” charge quickly to recharge a car when needed.

    Again the maximum current draw is the limit, both for the connecting cable and the battery management system.

    Whatever – we’ll know very soon!