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Thousands of British firms could be allowed to convert to being German after Brexit

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Germany is planning to allow thousands of small businesses registered under British rules to convert to being German firms after Brexit.

The draft bill, seen by CNBC and put forward by the Federal Ministry of Justice and Consumer Protection, was adopted by the German government Wednesday. If passed through the German parliament, amendments could be made to the country’s Transformation Act, affecting around 10,000 small to medium-sized businesses.

Under EU freedoms, those businesses were able to register their firms under British rules despite being based in Germany. Reasons for this were that it was considered cheaper and simpler.

Current laws dictate that to become a German limited liability company, small firms must have a minimum share capital of 25,000 euros ($28,809) – higher than the share capital required to register as a British limited company. Share capital is the total value of all the shares that a company issues.

Under the new regulation, companies registered as British will be able to convert without increasing their capital.

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Tesla CEO Elon Musk: extreme micromanager

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Tesla’s future as a mass-market car company hinges on efficient, automated production of the Model 3. Tesla will lose $6,000 for every $35,000 Model 3 it sells, says UBS analyst Colin Langan. It only breaks even if the car sells for over $41,000. Tesla has yet to produce the $35,000 base model of the Model 3.

Tesla did meet the goal of producing more than 5,000 Model 3 vehicles in a week during the third quarter. It made 80,142 vehicles (including 53,239 Model 3’s), beating Wall Street analysts’ expectations. But the company is nowhere near the 500,000 mark Musk promised in 2016. As of the end of Q3, Tesla has produced 167,975 cars this year. To put that in context, Ford makes that many cars approximately every 10 days.

Tesla promised investors that it will achieve positive cash flow and profitability in the second half of 2018. But some investors and analysts are deeply skeptical this will happen. Tesla’s debts are quickly coming due: The company has to pay around $230 million in November, part of a larger $1.3 billion debt bill coming due in March 2019, according to AP.

Faith in the Tesla CEO is being tested like never before. Investors are wary of his social media and legal battles, attitude toward regulators and recreational drug use.

Many employees think Musk is essential to the company’s success. They praise his creativity, sense of humor and inspiring speeches. Some credit his hands-on management style with building a great company. A former Tesla and SpaceX employee, Spencer Gore, who is now the CEO of Impossible Aerospace, explained:

“Elon Musk is in a position most will never experience — trying to deliver an industry-defining product on a limited budget. He can’t afford to make decisions slowly, or even always compassionately. When he involves himself in low-level details it’s to enhance execution speed. For some engineers, this can be frustrating, at times heartbreaking — but Elon’s unconventional style is what built the Tesla we all chose to join.”

But other employees describe how Musk’s management style has increased costs and complexity in the factories.

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Saudi Arabia says journalist Jamal Khashoggi was killed after a fight broke out in consulate

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A man holds a poster of Saudi journalist Jamal Khashoggi during a protest organized by members of the Turkish-Arabic Media Association at the entrance to Saudi Arabia's consulate on October 8, 2018 in Istanbul, Turkey. 

Chris McGrath | Getty Images News | Getty Images

A man holds a poster of Saudi journalist Jamal Khashoggi during a protest organized by members of the Turkish-Arabic Media Association at the entrance to Saudi Arabia’s consulate on October 8, 2018 in Istanbul, Turkey. 

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Top VC deals: Instacart hits a $7B valuation; Bill Gates raises an EU energy fund

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 A weekly recap of the most interesting venture capital deals, funds and start-ups.

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