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Mayor tied to Tesla Supercharger site questioned over ‘conflict of interest’

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Tesla Supercharger station in Aberdeen, Washington [Credit: Trebor Thickweb via app check-in]

He was young. Ambitious. Gifted. One of the greatest players to ever set foot on a professional baseball diamond, “Shoeless” Joe Jackson’s career ended in tatters for his alleged role in the infamous Chicago “Black Sox scandal” of 1919.

Call it a “conflict of interest.” It involved money. Lots of it.

Something else that involves money – lots of it – is afoot in Aberdeen, Washington: A Tesla Supercharger station and a “Gateway Center.” Aberdeen Mayor Erik Larson is a staunch proponent of both.

Updated: Mayor Larson fines himself $500 for violating the state’s conflict of interest ethics code

Mayor Larson is making the rounds looking for funding to help cover the costs of Gateway Center construction which is expected to cost upwards of $8M to complete, and incorporate Tesla’s Supercharger station into the design.

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Questions within the community are swirling around what appears to be a conflict of interest regarding the mayor’s involvement in the Tesla deal. Documents have surfaced showing that the mayor has, or had, a financial interest in the electric car company that’s building the Supercharger station, apparently while he was negotiating with the company to bring the project to a city-owned lot. Why the station is being built on publicly owned land rather than on a private site is also in question.

Background

Mayor Larson negotiated the original agreement with Tesla for the charging station, which could have cost the city up to $2,000 a month in utility bills. The lease agreement came before the Aberdeen City Council for approval last summer. Originally, the City of Aberdeen was on the hook for paying  electricity costs.

Tesla Supercharger station in Aberdeen, Washington during construction [Credit: Trebor Thickweb via app check-in]

As noted in the Aberdeen City Council meeting agenda dated July 13, 2016, the lease language at that time included (see page three):

“The Mayor has negotiated with Tesla Motors, Inc. for the construction of a Tesla supercharger station in Aberdeen on the city of the former Chevron station. The supercharger will be incorporated into the design of the Gateway Center. …  the city will also be responsible for… paying the utility bills for Tesla vehicles that use the charging station, up to monthly cap of $2,000 per month.” (Emphasis added.)

Reading further, Item 8 of that actual lease agreement specifies that:

“Tesla agrees to arrange for all Tesla-related utility services provided or used in or at the Premises… Tesla shall pay directly to the utility company the cost of installation of any all such Tesla-related utility services and shall arrange to have the utility service separately metered. (Counterparty) shall be responsible for paying all utility bills related to such meter after installation, including payment for electricity consumed at the Premises during the Term, up to two thousand dollars ($2,000) per month.” (Emphasis added.)

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Other Cities, Other Charging Stations

Tesla lease agreements with city governments aren’t new. Similar charging stations exist in five other Washington cities: Centralia, Burlington, Ellensburg, Kennewick, and Ritzville. There are eleven Supercharger stations in Oregon. All are located on either hotel/resort type private property or some other type of retail/outlet center. But the Aberdeen location is on a city-owned lot.

In California, two Supercharging stations on publicly owned property exist in Ukiah and Crescent City. But the terms negotiated by those cities for the stations are jarringly different from those negotiated for the Aberdeen site:

In Ukiah:

– “Tesla pays for the entire project, including staff time and utility costs.” (Ukiah Daily Journal, August 8, 2015.)

In Crescent City:

  • The city is being paid by the tenant for use of its property. A proposal by Recargo, Inc. to build and operate a universal electric vehicle charging station in Crescent City included a $4,800 annual payment from Recargo to the district for use of the property. (Del Norte Triplicate, October 11, 2016.)
  • “Essential components” of the city’s lease agreement with Tesla includes: “(1) the term, which is five years with two five-year options to renew, (2) Tesla will build and maintain the facility, and (3) the lease amount is one dollar per month.” (City of Crescent City Council Agenda Report, April 6, 2015.)
  • Tenant “agrees to arrange for and pay for all Tenant-related utility services provided or used in or at the Premises during the term of the Lease.” (#10 – Utilities – City of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)
  • “Tenant shall pay directly to the utility company the cost of installation of any and all such Tenant-related utility services and shall arrange to have the utility service separately metered.” (#10, UtilitiesCity of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)

In Aberdeen:

  • The city (re: taxpayers) could get stuck with “up to 30,000 for the costs of installing the new infrastructure for the city” per the re-negotiated August agreement.

[Credit: Conservelocity]

Key items in the re-negotiated agreement between the city and Tesla include (Aberdeen City Council Meeting Agenda, August 24, 2016. See page 3):
  • The provision requiring the city to pay for electricity used by Tesla vehicles was removed.
  • The proposed new lease requires Tesla to pay for all costs of charging Tesla vehicles.
  • The lease also requires Tesla to install infrastructure “that would allow the city to add charging stations for other electric vehicles at some point in the future.”
  • The city “will reimburse Tesla up to $30,000 for the costs of installing the new infrastructure for the city.” (Emphasis added.)

According to minutes from the August 24, 2016 Aberdeen City Council Meeting, a motion to adopt the re-negotiated lease agreement carried.

An interesting wrinkle, as announced by Tesla on November 7, 2016, is that Tesla has decided to stop offering unlimited free use of its network fast-charging stations worldwide beginning this year.

So, other than hopes of helping “attract potential tenants to the center as the first project participant” and providing “nearby restaurants and retailers with additional business” per Mayor Larson, just how, exactly, does the supercharging station tangibly benefit Aberdeen taxpayers or offset “up to $30,000” in reimbursements to Tesla “for the costs of installing the new infrastructure for the city”?

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The Daily World reports that “A $30,000 grant will help Aberdeen reimburse Tesla for installing the station.” In light of the agreements hammered out with other cities for charging stations on public land, however, why is Aberdeen on the hook for reimbursing Tesla for any installation costs?

Another wrinkle:

According to an October 28, 2016 story in The Daily World, five Aberdeen sites were in the running as possible locations for the new Supercharger station, including the parking area for the Center. Larson explains:

“They (Tesla) could have easily worked with Gateway Mall or sought out private ownership, but they were interested in the Gateway Center parking lot.”

Why was a publicly owned site selected instead of a privately owned one? Is city government using public funds to compete with private business?

Additional questions swirl around Mayor Larson’s financial interest in Tesla Motors.

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Some questions:

  1. Did Mayor Larson disclose his financial interest/common stock in Tesla Motor Company anywhere other than on his 2015 and 2016 PDC F-1 forms?
  2. As a candidate, Mayor Larson reported his stock value as $4.5K – $23.9K. After he was elected, he reported the value as $24K – 47.9K. What’s up with that?
  3. The mayor apparently handled all negotiations with Tesla, even though he had/has a financial interest in the motor company (See PDC F-1 forms, above). Did the city know about his financial interest in this company? If so, did it okay the mayor as negotiator of the Tesla lease agreement anyway? Why?

Perhaps a contract negotiator sans an apparent financial interest in the project under negotiation might be a good idea?

While we’re raising questions, what of Shoeless Joe? After the Black Sox scandal, Jackson never set foot on a professional baseball diamond again. He was banned for life along with seven other Chicago players for their alleged involvement in intentionally throwing the 1919 World Series to the Cincinnati Reds. Jackson’s alleged involvement in the conspiracy is still the subject of hot debate. Some maintain that the only things Joe was guilty of were being young, ambitious, gifted, and a bit naive.

Ring any bells?

Kristine Lowder

This guest post was written by Kristine Lowder of Conservelocity. Do you have a post you’d like to share? Email it to us at info@teslarati.com

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Tesla contract with Baltimore paused after city ‘decided to go in a different direction’

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Credit: Tesla

Last Summer, Tesla landed a $5 million contract with the City of Baltimore for a fleet of electric vehicles for the local government. However, Mayor Brandon Scott decided to pause that investment in September after the City “decided to go in a different direction.”

This is according to John Riggin, spokesman for the city’s Department of General Services. Riggin confirmed that the contract with Tesla has not been fulfilled, and Baltimore is going with other options for the time being:

“No Tesla units have been ordered, and none are in the City’s fleet.”

It now seems that the contract, which was set to be run until 2027, is not really a typical “contract” in the sense of the word. Riggin said the city is not obligated to spend the money for vehicles from Tesla, and that it is evaluating offerings from a variety of OEMs, including Ford and General Motors.

Tesla chosen over Ford for $5 million Baltimore City EV fleet

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Riggin said the value of the contract is more of a ceiling and not necessarily an obligation to spend the committed amount in full.

The contract has not been canceled officially, but City Comptroller Bill Henry said to the Baltimore Sun that it has gone back to purchasing Mustang Mach-Es from Ford, the vehicle that was snubbed for Teslas back in July when things were initially decided.

The timing of the pause is interesting, and it does not seem to have anything to do with CEO Elon Musk’s direct involvement with the Trump administration, although the EV maker’s frontman was already vocalizing his distaste for the Democratic White House run by the Biden Administration.

Baltimore has a citywide goal of achieving carbon neutrality by 2045, and has used EVs in its fleet for several years to reach that goal. It plans to electrify the city vehicle fleet by 2030.

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Tesla at risk of 95% crash, claims billionaire hedge fund manager

Tesla stock has been extremely volatile as of late amidst souring sentiments over CEO Elon Musk’s political leanings.

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Credit: Tesla Singapore/X

Christer Gardell, a Swedish billionaire and hedge fund manager, issued a stark warning about Tesla stock and what he believes are bubbles in the stock market. The billionaire’s insights about Tesla were shared during an interview with EFN

Tesla stock has been extremely volatile as of late amidst controversies and souring sentiments over CEO Elon Musk’s increasingly political leanings.

Alleged Tesla (TSLA) risks

Gardell did not mince words about Tesla, stating that the electric vehicle maker’s valuation could drop as much as 95% due to the “circus” surrounding its CEO. 

“Tesla, especially now with the whole Musk circus going on everywhere, is probably the most expensive stock on the global stock exchanges right now. It could go down 95% – and maybe it should go down 95%,” he said in the interview

The Swedish billionaire sees Tesla as fundamentally a car company. Thus, he does not understand why the market has given the EV maker such a high value. For context, the Tesla story has been changing in recent years, with the company growing its energy business and delving into AI and robotics.

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Gardell Slams “Eternal Bubble

Gardell believes the EV maker has become a poster child of sorts of a market that has become speculative, where share prices do not reflect true valuations anymore, as noted in a CarUp report. The hedge fund manager noted that in Tesla’s case, this “eternal bubble” should have burst long ago.

“I have commented that it should have burst over the past five years, but it still hasn’t. The valuation is incomprehensible,” he explained. The hedge fund manager, however, noted that once the crash happens, the decline would be dramatic.

“It’s always hard to say when. It could happen in a month, six months, a year, three years, or five years – it’s impossible to answer. Because there’s so much money dominating the stock market now, and they don’t care about the value of the shares, they speculate on price movements,” he said.

U.S. Stocks Overpriced, Europe Offers Value

Looking beyond Tesla, Gardell flagged broader risks in the U.S. stock market, which he described as significantly overvalued. “American stocks have received very large flows recently. If you look at the American stock market, it is very expensive, both from a purely absolute perspective and from a historical perspective,” he stated.

In contrast, Gardell touted European stocks as a more attractive option for investors. “And the difference between American stocks and European stocks has never been greater. Normally, European stocks have had a discount of 20%, now it is 40%. And that is too high,” he noted.

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Tesla store shooting incident under investigation

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Oregon police are investigating a shooting incident involving a Tesla store.

A Tesla store in Tigard, a city southwest of Portland, was vandalized around 2:00 am on Thursday, March 6.

“The damage was discovered by employees who arrived for work this morning (3/6/25) at the dealership on SW Cascade Avenue. Investigators believe at least 7 shots were fired, damaging 3 cars and shattering windows. One bullet went through an office wall and into a computer monitor. Fortunately, this happened overnight when the property was unoccupied,” stated a Tigard Police report.

Crime scene technicians and investigators are gathering physical and video evidence of the shooting. Tigard Police did not officially announce a motivation for the shooting at the Tesla store. However, they acknowledge that a few Tesla locations have been targeted across Oregon and the nation.

Tesla locations across the United States and abroad have been experiencing attacks recently. Most of the company’s locations experience arson attacks. For instance, in France, around a dozen Tesla vehicles were reportedly torched in a suburb near Toulouse. Meanwhile, in Massachusetts, a few Tesla Superchargers were allegedly set on fire near a shopping center. Tesla protests have also started in various locations.

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Police have not provided an official reason or motivation for all the arson attacks and the Oregon shooting because they are still under investigation. However, Elon Musk is definitely at the root of the matter.

Elon Musk has recently found himself the target of plenty of ire in the United States and Europe. Tesla is taking the brunt of all the anger pointed toward Musk.

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