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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.
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.
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.
Wonder if we'll ever see a chart like this by Zach-Boy CFO on $TSLA's cash trends.
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?
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.
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.
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
H/T @PlainSite
