,
12 tweets,
3 min read
Read on Twitter
Extremely unclear as to how $TSLA is trading above $2.00 given the information available to the market. It's over. There is no viable path forward.
Why not? First, almost no one is buying the cars. There's no profit left at the new low price, which is just there now to balance bad PR. The star CEO is is civil contempt of court after committing securities fraud. The CFO left. The GC left. The HR VP left. So did 60 others.
Those that weren't laid off in Big Layoff 1 or Big Layoff 2 want to leave because they see the writing on the wall. Top talent is already gone. Gigafactory 1 will soon be Panasonic's. Gigafactory 2 is an empty fraud subject to clawbacks. Gigafactory 3 is an open field in China.
The stores are all closing. The Model S and Model X lawsuits continue to pile up because of design and manufacturing defects, including those from buildings cars in a tent. The Model 3 has more flaws than the S or X, but those lawsuits haven't even hit yet for the most part.
There isn't enough reserved for warranty repairs. The DOJ was investigating Model 3 production numbers long ago, and is likely triply interested now. The Parulekar accounts payable wire fraud case is still mostly sealed. And there's likely been an SEC referral to DOJ over Musk.
Then there's the cash crunch. Today, $920 million in cash vanishes. They misled investors on cash position in the 10-K so they probably only have a couple hundred million left (if that), so the company is running on fumes and has to delay small claims hearings over $5K disputes.
Can someone on Wall Street please explain where the $50 billion in value remains for this company?
Because if that wasn't enough, the cars also have a tendency to A) change lanes on their own; and B) spontaneously combust, killing people, as if we're back to the days of the Ford Pinto.
Other than that? Customers owed refunds have reported that their checks are bouncing. And European buyers want to return their damaged cars that don't seem to be compatible with superchargers at a time when the company has pinned its hopes on Europe.
SolarCity still has not produced the roof tiles Musk promised en masse—admittedly a massive engineering challenge, but also securities fraud due to his statement. Solar has dragged Tesla team into ~100 pointless lawsuits (not tracked on PlainSite) involving liens and mortgages.
Then you have the unions, who are still pissed because not only did they get tied up in the bonds, which the Teamsters are still suing over, but Tesla has been treating its workers, and especially minority workers, like dirt, and so the now-very-empty factories are unionizing.
To clarify, the Model 3s were the ones built in the tent. But all models would appear to suffer from design defects.
