Tag Archives: Tesla

Elon Musk smoking weed has much more dire consequences than you realize, by Simon Black

Is the long rally for tech stocks, like Elon Musk’s joint, going up in smoke? From Simon Black at sovereignman.com:

An insane event on March 2, 2017 likely signaled the top of the current market…

On that day, shares of Snap (SNAP), owner of the popular Snapchat app, went public at a valuation of more than $30 billion.

But it wasn’t the sky-high stock price that made this IPO special. Nor was it the fact that the company’s co-founders, 26-year old Evan Spiegel and 28-year old Bobby Murphy, became multi-billionaires overnight.

What made this IPO special was the fact that it was the first time in US market history that a company publicly offered shares with absolutely ZERO voting rights.

Snap clearly highlighted the fact in its pre-IPO documents… “to our knowledge, no other company has completed an initial public offering of non-voting stock on a U.S. stock exchange.”

Still, investors piled in, knowing they were buying nonvoting shares… essentially granting totalitarian control of the company to two kids.

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Tesla’s Death Dive, by Eric Peters

Tesla and cryptocurrencies are plunging, which means the universe of hope-and-a-prayer investments is shrinking. What are the get-rich-quickers to do? From Eric Peters at theburningplatform.com:

It is beginning.

Actually, it’s been happening for a long time – like a slowly metastasizing cancer. The afflicted can no longer hide the underlying disease.

Tesla is dying.

Elon is panicking – and executives are bailing. Yesterday, the company’s chief accounting officer, Dave Morton, resigned less than a month after taking the job. What do you imagine he  . . . took account of?

Left column, right column. What didn’t add up?

“Since I joined Tesla on August 6th, the level of public attention placed on the company, as well as the pace within the company, have exceeded my expectations,” Morton said a statement released by the company in a filing with the Securities and Exchange Commission. “As a result, this caused me to reconsider my future.” Continue reading

As Musk Goes Nuts Publicly, Tesla Bondholders Get Antsy, by Wolf Richter

Bondholders usually get nervous about failing companies before stockholders. That looks to be the case with Tesla. From Wolf Richter at wolfstreet.com:

In terms of Tesla’s survival, this poses a problem.

Tesla shares fell 2.8% to $280.74 on Wednesday. They’re now down about $100 from the closing price of August 7 ($379.57) and down $107 from the high that day ($387.46). This was the moment when CEO Elon Musk had pulled another rabbit out of the hat during trading hours in order to brazenly manipulate up the share price by announcing a blatant lie – that he’d take the company private at $420 a share, “funding secured.” Today, shares closed $140 below the buyout-lie number.

The ludicrousness of his lie that had instantly spread all over the world had an unintended consequence for eons to come: The term “funding secured” can never again be pronounced with a straight face.

As a consequence, Tesla is now steeped in legal issues. It’s not like it doesn’t have enough issues already, with its “manufacturing hell,” as Musk himself called it, that refuses to abate.

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Fool me once, shame on Elon. Fool me twice. . . by Simon Black

How many lies will Elon Musk be allowed to tell before his adoring shareholders turn on him? From Simon Black at sovereignman.com:

There’s no doubt you know the story…

On August 7, in the middle of the trading day, Tesla founder Elon Musk surprised investors with a tweet saying he was considering taking Tesla private at $420 per share (a $72 billion valuation) with “funding secured.” He quickly followed up with “Investor support is confirmed.”

Shares of Tesla soared 13% to $387 on the cryptic social media update from Tesla’s exalted chief.

The news created a media frenzy around the already red-hot company (and prompted the SEC to investigate Musk and Tesla for potentially lying to investors about a takeover). A single tweet – while the market was still open, no less – was an odd and informal way to announce such a major event.

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Did Musk consult Tesla’s board of directors before making this public? Did they even know of his plans to take the company private? Is any of this even true?

It didn’t matter to Tesla’s shareholders, who believe Musk walks on water and his tweets are gospel. So the stock price soared.

And the deal made sense for Musk…

Investors, including himself, would make a fortune.

And he would no longer be bothered by those pesky short sellers, reporting enormous losses to the public and nagging production deadlines (which Tesla continually misses)…

As a private company, Musk wouldn’t even have to ask shareholders’ permission for a $50 billion pay package.

Only, Tesla isn’t going private.

Last Friday, in a blog post (you know the announcement has got to be important if it’s escalated to blog post formality) Musk announced Tesla would stay public.

He gave a bunch of excuses for the decision, including going private would be more time consuming than he realized and that his beloved retail shareholders (his congregation) couldn’t own shares in a private company.

To continue reading: Fool me once, shame on Elon. Fool me twice. . .

Geniuses of The Left and the Glory of Cars, by Tom Luongo

Cars that must feed off the electric grid are a bad idea, and their chief proponent, Elon Musk, is a darling-of-the-left “genius” who has brilliantly promoted a solution that’s not a solution. From Tom Luongo at tomluongo.me:

Former Theranos CEO Elizabeth Holmes is most likely going to jail.  She wasn’t Steve Jobs with a vagina, she was a fraud.

George Soros is not a “billionaire philanthropist” anymore than Hillary Clinton is the “most qualified person to ever run for President.”  He’s a cross between a virus and a vulture, first indiscriminately killing whole colonies of prey and looting their corpses long after they are dead.

Mark Zuckerberg is not the kid who brought the world together.  He’s just a creepy stalker with powerful friends.

Elon Musk isn’t “the smartest guy in the room”.  He’s a huckster.  A talented huckster, for sure.  But, the lies of the huckster always catch up with them, like right now.

All of these people are the New Geniuses championed relentlessly by the Left. They are the media darlings of the past decade presented to us as the new faces of capitalism while pulling the strings of the political system to prove to us there is a better way forward for humanity.

But, there isn’t.  This con job of Soros’ “open society” is nothing more than a front for the same Utopian Trotskyism that destroyed Russia a century ago.  They are the same tired, pampered control freaks, the forces of centralization I call The Davos Crowd, set upon us to steal our wealth and and limit our choices.

Musk, in particular, is the worst of the three innovators listed above.  Why?  Because he’s trying to destroy the car.

And the car is the most important invention of the 20th century.  It gave us freedom of movement in ways our ancestors could only dream about.

Freedom of movement enhances trade and resource collection/distribution by orders of magnitude.  It gave us on-demand mechanical advantage not capable with block and tackle or teams of horses.

And Musk wants to tie the car to the centralized, massively inefficient electrical grid, owned and operated around the world by the State.  He wants to chuck a century of perfecting the internal combustion engine be it powered by gasoline or diesel.

To continue reading: Geniuses of The Left and the Glory of Cars

No Tesla Deal! Musk Backpedals Furiously Friday Night, by Wolf Richter

The water’s leaking into the Tesla rowboat faster than Elon Musk can bail. From Wolf Richter at wolfstreet.com:

Turns out, “Funding secured” was a lie, conceived in order to manipulate up the share price.

Tesla CEO Elon Musk has superseded the infamous August 8 tweet — “Am considering taking Tesla private at $420. Funding secured” — which had caused market capitalization to spike by about $6 billion, with a blog post late Friday in which he says that funding was never secured, but that instead it was his “belief” there was “more than enough funding,” and that the buyout isn’t going to happen at all.

We’ll get to some of the rigmarole in a moment, but deep down in his blog post, Musk says this:

After considering all of these factors, I met with Tesla’s Board of Directors yesterday and let them know that I believe the better path is for Tesla to remain public. The Board indicated that they agree.

So the mind-deal is off.

Here’s what he says about the advisors he hired after the “funding secured” tweet, and not before:

I worked with Silver Lake, Goldman Sachs and Morgan Stanley, who have world-class expertise in these matters, to consider the many factors that would come into play in taking Tesla private, and to process all the incoming interest that we received from investors to fund a go-private transaction.

And then there are the current shareholders to consider:

I also spent considerable time listening to current shareholders, large and small, to understand what they think would be in the best long-term interests of Tesla.

He did this after all hell had broken loose following his tweet, including a market reaction that indicated that there was a zero percent chance the buyout would happen at $420 a share, given that shares were trading as much as $120 below the buyout price.

And so, “based on all the discussions that have taken place over the last couple of weeks,” there are now – late Friday, August 24, not August 8 when he was tweeting-while-driving — “a few things” that are finally “clear” to him:

Given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company.

Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company.

To continue reading: No Tesla Deal! Musk Backpedals Furiously Friday Night

If You Read Between The Lines, Global Economic Leaders Are Telling Us Exactly What Is Coming, by Michael Snyder

Very few come right out and say what they mean anymore, but if you pay close attention, sometimes you can figure it out anyway. From Michael Snyder at theconomiccollapseblog.com:

Sometimes, a strongly-worded denial is the most damning evidence of all that something is seriously wrong.  And when things start to really get crazy, “the spin” is often the exact opposite of the truth.  In recent days we have seen a lot of troubling headlines and a lot of chaos in the global financial marketplace, but authorities continue to assure us that everything is going to be just fine.  Of course we witnessed precisely the same thing just prior to the great financial crisis of 2008.  Federal Reserve Chair Ben Bernanke insisted that a recession was not coming, and we proceeded to plunge into the worst economic downturn since the Great Depression.  Is our society experiencing a similar state of denial about what is ahead of us here in 2018?

Let me give you a few examples of some recent things that global economic leaders have said, and what they really meant…

Tesla Motors CEO Elon Musk: “We are definitely not going bankrupt.”

Translation: “We are definitely going bankrupt.”

Tesla is a company that is supposedly worth 51 billion dollars, but the reality is that they are going to zero.  They have been bleeding massive amounts of cash for years, and now a day of reckoning has finally arrived.  A severe liquidity crunch has forced the company to delay payments or to ask for enormous discounts from suppliers, and many of those suppliers are now concerned that Tesla is on the verge of collapse

Specifically, a recent survey sent privately by a well-regarded automotive supplier association to top executives, and seen by the WS , found that 18 of 22 respondents believe that Tesla is now a financial risk to their companies.

Meanwhile, confirming last month’s report that Tesla is increasingly relying on net working capital, and specifically accounts payable to window dress its liquidity, several suppliers said Tesla has tried to stretch out payments or asked for significant cash back. And in some cases, public records show, small suppliers over the past several months have claimed they failed to get paid for services supplied to Tesla.

Shark Tank billionaire Mark Cuban: “I’ve got a whole lot of cash on the sidelines.”

Translation: “I believe that the stock market is about to crash.”

To continue reading: If You Read Between The Lines, Global Economic Leaders Are Telling Us Exactly What Is Coming