Short thread on $TSLA / Musk for my non-finance followers who have been asking about the fraud charges.
Nothing new for those following the situation in this thread, but a high-level summary of some of the clear lies for those entirely out of the loop.
Nothing new for those following the situation in this thread, but a high-level summary of some of the clear lies for those entirely out of the loop.
1/ In late Sept the SEC sued Musk for fraud. Musk misled investors and pumped up $TSLA share price with false statements, presumably hoping to avoid a convertible payment ($920M in March 2019) that TSLA most likely can't afford without a new equity raise (debt not realistic). 
2/ In a July lawsuit, three former $SCTY employees sued the company for alleged sales practices used to justify "an unreasonably high valuation" for a raise.
This week the State of Oregon clawed back $13M from SCTY who "inflated prices to qualify for higher tax credits."
This week the State of Oregon clawed back $13M from SCTY who "inflated prices to qualify for higher tax credits."
3/ In Sept former $TSLA employees sued the company for misleading investors with regards to Model 3 production, both in terms of i) when automated production would begun and ii) how many cars a week the Company could produce.
These lies allowed TSLA to raise $1.8B in junk bonds.
These lies allowed TSLA to raise $1.8B in junk bonds.
4/ Remember the internal pump memo Musk shared Sept 7, two weeks after $TSLA announced the $420 LBO was never going to happen?
It said Q3 production would double Q2, i.e. go from ~53K to ~106K cars.
Clearly it was known internally it'd be impossible to get to >100K by then.
It said Q3 production would double Q2, i.e. go from ~53K to ~106K cars.
Clearly it was known internally it'd be impossible to get to >100K by then.
5/ In Oct 2016, Musk also lied about the Solar Roof product to help justify bailing out $SCTY for $2.6B. Musk was largest owner (his cousins involved), and used $TSLA to bail out the failing company right before liquidity crisis to fill his and cousins' pockets (Cc: @TeslaCharts)
6/ That all barely qualifies as the tip of the ice berg, but should give people who haven't followed the $TSLAQ saga some color on what's going on around the company and Musk.
He's definitely not in this "to save the planet." This is all to fill his and friends' pockets.
He's definitely not in this "to save the planet." This is all to fill his and friends' pockets.
To be clear, this is NOT the bear case for $TSLAQ -- the business itself is flawed and unsustainable, and won't be able to generate positive cash flow long-term any more than to produce the $35K Model 3s.
This thread merely gives color on Musk's fraudulent ways.
This thread merely gives color on Musk's fraudulent ways.
Disclaimer (not that it wouldn’t be obvious to anyone who reads the thread): I’m definitely short $TSLA via put options. Good time to load up on $50s because this one is a zero.
