Thread by @ClaireMusk

Thread on the #Tesla Model 2 Fraud (aka "Fluffy Pillow" h/t @passthebeano)
It's being asked as an earnings call question again. It's simple: Musk LIED. The "Fluffy Pillow" is NOT going to happen for $25k. Musk just hiked the Model 3 SR+ (50 kWh) price to $42k... $TSLA $TSLAQ 1/6

...and that's *with* corner cutting with inferior Chinese LFP cells, killing lumbar adjustments, cheap paint, ersatz chips, not doing brake testing, etc.
Maybe #Tesla can cut $3k more with a tiny battery, but that'd mean a <150 mi. range. Making it a subcompact... 2/6

...might shave only a few hundred in raw material costs. Tesla's cut to the bone. There's nothing left to squeeze.
Elon Musk's strategy behind the #Tesla "Fluffy Pillow" was to use the car as a loss leader. He banked on FSD uptake pushing it into positive margin territory. 3/6

But with #FullSelfDriving being exposed as a total & dangerous fraud, even fanboys are getting nervous. Owners are openly talking about a class action. #FSD uptake rates must be tanking. There's no way Musk can sell a car that costs $30k to make for $25k. The problem... 4/6

...is that Musk's production capacity expansion strategy (Texas, Germany) was thought out around the same time that Musk was banking on the "Fluffy Pillow" reaching fruition, the maturity of "Full Self Driving", and a global expansion of EV subsidies. 5/6

Now that "Fluffy Pillow" is a no-go, and FSD is DOA, the only card Musk is praying will come up are subsidies to push EV/Tesla sales. If subsidies don't go his way, the Texas factory is going to eat #Tesla alive, literally (cash burn) and figuratively (narrative death). 6/6