Thread by @cppinvest

1/ Finally got through the Q1 2019 Tesla earnings transcript. Was surprised to see battery production constraints listed as a reason for negatively impacting volumes and revenue. But not really. . .

$TSLAQ

2/ In spite of the production challenges, Elon still touts battery production and its integration into manufacturing as a competitive advantage.

3/ Remember when we all had high expectations for battery production? In 2017 even when Elon was floating both public equity and debt. Funny how that happened. . .

4/ But maybe battery production isn’t a competitive advantage. Because battery production issues have been a common theme. From July 2017, battery issues were the issue with car production. . . said the battery company:

5/ Aaaaand said battery production problems continued into the Fall of 2017.

6/ Which brings us to today where we find - get this - battery production was an issue hampering production. Again.

7/ So what was the point of Gigafactory 1? I get the desire to integrate and streamline production. But it has failed. Why do you need to “source from suppliers around the world” and “scrounge” for battery supplies when you’ve spent billions on a state of the art facility?

The Gigafactory (among other tesla assets) represents misplaced capital. So now he wants to raise. When you are a CEO, you are a steward of other’s capital. Where and when has he ever proved to be a good steward of capital?