, 12 tweets, 6 min read Read on Twitter
1) The lawsuit against @elonmusk & $TSLA's Board of Directors over $TSLA's acquisition of SCTY is a rare insight into what true scumbags Musk & his clan are.

I read the Plaintiffs' Opening Brief & wanted to share a few bits that grabbed me. It's a tabloid-like read on Fraud 101.
2) "Unbeknownst to the market," SCTY was seeing its cash on hand dropping from $1.1bn at the beginning of 2015, to $0.2bn by year end.

Wonder if there's anything like this going on at $TSLA right now "unbeknownst" to us.
3) SCTY had to have *at least* $116m in cash, otherwise they would breach liquidity covenants that would lead to cross-defaults on other debts.
4) This is the graph SCTY finance officials show @elonmusk at the time. The figures circled in red are breaches of SCTY's liquidity covenants.

Wonder if we'll ever see a chart like this by Zach-Boy CFO on $TSLA's cash trends.
5) @elonmusk orders preparations for $TSLA to acquire SCTY. CFO Wheeler drafts a presentation for the Board on the fly. Conclusion: "it would be a financial disaster for Tesla."

Obviously, this didn't faze @elonmusk.
6) Financing wasn't an option. So what's the solution? Something Panasonic & other $TSLA suppliers know all too well: delaying payments to vendors. Who's idea? @elonmusk's, of course.

Any wonder why there's news from China about delays in GF3 gathering its needed suppliers?
7) Musk's cousin & SCTY CEO, Rive, told shareholders that SCTY's 2016 growth "would be the envy of most industries...in this country". Sound familiar?

2 months later, SCTY revises its 2016 installation target by 28%. Rive warns the Board that cash dropped down to $73m.
8) @elonmusk begins a vigorous lobbying effort on the Board & key shareholders to approve a $TSLA acquisition of SCTY. $TSLA retains Evercore as its financial advisor, the @GerberKawasaki of investment banks. Their first appraisal is redacted, but Musk likes the merger ratio.
9) Things get worse so @elonmusk holds his fake solar roof shingles presentation. Says it's a "no-brainer" that his car company merges w/ a (bankrupt) solar panel company. Depositions proved that all this was fake (sort of like Theranos). Acquisition goes through, nevertheless.
10) Naturally, $TSLA over-paid for SCTY. Section VI of the briefing explains why & is one of the funniest sections (Pg 30-37).

As one would expect Ross Gerber to do, Evercore left 45% of SCTY's cash-cow biz's *in* its DCF, despite this biz being scheduled to phase out by 2022.
11) This report is damning to @elonmusk & $TSLA. I still can't see how SCTY can still remain valued at $2.1bn on $TSLA's balance sheet, esp since we now know that a key cash source of SCTY (overlooked by Evercore) is being phased out gradually from 2020-22.
12) The evidence & depositions in this report, alone, are enough for the media to have a field day in showing just how far a fraudster like @elonmusk will go to hide his ineptitude. Link to the briefing is in the thread. Great read.

H/T @PlainSite

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