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Paul Smith @GreatPaulSmith
, 14 tweets, 4 min read Read on Twitter
Based on @TeslaCharts research on $TSLA registration delays, I've outlined what is the most obvious explanation for a sizable portion of these delays

Having 2 dealer friends that did the same #fraud & were caught, Its the same scam just @ a much larger scale
How it works for dealers:

Credit line (flooring) secured by cars @ 85% of value, 15% cash by dealer
Inventory must be in known location so it can be audited by lender. Lender is putting up $, needs to know where their collateral is.
Dealers have lots, also off site locations, but those don't change and are known by the flooring co

When car is sold, $ is received, Car is given to to new buyer with temp tags, the new owner leaves the lot.
Dealer receives the $ pays down the lender, gets their 15% back + profit, registers the car, title sent to lien holder (if you finance it goes to the bank)
The Fraud
$ is received, dealer gives car w temp tags but delays registering/sending the title. Until car is registered & title is transferred , flooring lender still thinks the car hasn't sold & is dealer inventory.

Dealer just stole that 85% of the $ the lender fronted them
What $TSLA is doing w M3
Instead of a flooring line they have an ABL but same idea

Sells car (A), receives $, new owner drives off with temp tags.
Tesla uses the money for other expenses, stealing from the ABL. They delay months, keep giving new temp tags as long as possible.
Once they sell another new car (B), they take those proceeds,they register car (A) & pay down the ABL, but play the temp reg game with car B, till they sell another car (C)
$TSLA must be thousands of cars deep in this scheme & I suspect that's what's been keeping them alive this long & why they haven't raised $.

Like any Ponzi, they need to sell more cars to pay off their ABL for the unregistered cars they took the money for
If sales decline or Tesla cant keep up the sales pace , those unregistered cars will never be registered
Connecting the dots:

$TSLA was close to death but in Q3 the registration delays begin when they are in their worst financial shape.
$TSLA is the OEM & dealer. The fraudulent possibilities are endless. With no 3rd party dealers, there are no checks & balances.
Their ABL is suppose 2 audit inventory, but there is no location for that, unlike traditional dealers
Tesla is deliberately hiding inventory all over the US from the ABL and #SGF -#SAF
And how can an ABL audit "in transit"?
Auto Nation sells 500k cars a year, Longo Toyota has sold 500 cars in a day.
Have you ever heard of the DMV being overwhelmed not being able 2 register cars?
It looks like they are doing this 4 their CPOs as well

A slight Possibly is they never paid off the used car to get the title but are selling cars they don't even own. Hence the stories of "lost titles"

Its all a big money grab to stay alive!
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