Story:
https://seekingalpha.com/article/4145646-tesla-breaks-faith-believers-time-go-short
Summary
. I think Tesla just made the biggest strategic mistake of its existence.
. Tesla, a faith-based investment, broke faith with its believers.
. Assume your cash will end just as all Tesla's cash ends: With a rapid burn.
"Elon Musk’s immense self-regard has led him to believe his company can do things differently from the way other automakers do them. He has special insights and visions that afford him the luxury of shortcuts. But what seems to him a special vision and understanding seems a prodigious arrogance and ignorance. By far the most important subsidy has been the $7,500 U.S. federal tax credit. If the Tesla buyer could not make use of it, then the leasing company could."
"But for Tesla, the end is near. That credit will be slashed in half in Q4, and will disappear altogether in 2019. Meanwhile, Tesla's competitors will have lots more running room. Tesla Is Structurally Bankrupt. Even once it ramps up Model 3 production, Tesla still will be losing hundreds of millions each quarter. As CoverDrive has spelled out, the company is structurally bankrupt - which is to say it depends completely on continued capital infusions for its survival."
Telsa stock was $341 when this was posted it's at $259 right now.
https://www.marketwatch.com/story/t...l-collapse-says-hedge-fund-manager-2018-03-27
“Tesla, without any doubt, is on the verge of bankruptcy,” he told clients in an email over the weekend. He explained that funding will be hard to come by in the face of problems in delivering the Model 3, declining demand for the Model S and X, extreme valuation and a likely downgrade of its credit rating by Moody’s from B- to CCC.
“As a reality check, Tesla is worth twice as much as Ford [estimate of the enterprise value of both companies], yet Ford
F+2.03% made 6 million cars last year at a $7.6 billion profit while Tesla made 100,000 cars at a $2 billion loss,” Thompson said. “Further, Ford has $12 billion in cash held for ‘a rainy day’ while Tesla will likely run out of money in the next 3 months. I’ve never seen anything so absurd in my career.”
Tesla declined to comment on Thompson’s views
https://www.google.com/amp/s/seekin...e/4159709-tesla-headed-credit-driven-meltdown
Tesla Headed For A Credit Driven Meltdown
Mar. 29, 2018 7:45 AM•
TSLA
Summary
- Moody's not only cut credit ratings but gave criteria for further ratings cut.
- We expect Tesla to fall short of Moody's expectations in a big way leading to further credit downgrades in about a month.
- We see Tesla headed for a credit driven meltdown.
When Tesla (
TSLA) raised debt capital in August of last year, we have argued that
was an insane move on the part of the management.
In November of last year,
we argued that the basis behind Moody's credit ratings of Tesla debt was no longer valid and that Tesla debt would be downgraded and Tesla would need to raise capital in 90 days.
https://www.forbes.com/sites/jimcol...ns-musk-needs-to-sell-stock-now/#86ef80571f73
Turkey's President Recep Tayyip Erdogan, left, shakes hands with Elon Musk, right, Tesla and SpaceX CEO, prior to their meeting in Ankara, Turkey, Wednesday, Nov. 8, 2017. Erdogan's office did not immediately provide details on the meeting, however it comes days after a consortium of five Turkish businesses, including mobile phone operator Turkcell, launched a joint venture to design and produce a Turkish-made car, a joint venture was launched under Erdogan's urging. (Pool Photo via AP)
The firestorm surrounding Tesla's creditworthiness intensified late Tuesday as Moody's downgraded Tesla's Corporate Family Rating from B3 to B2. Tesla's bonds sank after the news and were last quoted at 87.7 cents on the dollar. I've been asked many times in the last few days how to check Tesla's bond prices; the source is Finra's TRACE system and the link to pricing of Tesla' 5.3% notes due 2025 is
here.
http://openinsider.com/screener?s=T...2l=&v2h=&oc2l=&oc2h=&sortcol=0&cnt=100&page=1
John Douglas Field. Tesla VP Dumping Shares?
https://www.google.com/amp/s/www.ti...-1000-shares-of-tesla-inc-tsla-stock.html/amp
John Douglas Field Sells 1,000 Shares of Tesla Inc (TSLA) Stock
Thursday, March 22nd, 2018
Joseph Griffin
Tesla Inc (NASDAQ:TSLA) VP John Douglas Field sold 1,000 shares of the business’s stock in a transaction that occurred on Friday, March 16th. The shares were sold at an average price of $321.41, for a total value of $321,410.00. Following the transaction, the vice president now directly owns 20,561 shares in the company, valued at $6,608,511.01. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through
the SEC website.
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John Douglas Field also recently made the following trade(s):
- On Thursday, February 15th, John Douglas Field sold 1,000 shares of Tesla stock. The shares were sold at an average price of $330.06, for a total value of $330,060.00.
- On Tuesday, January 9th, John Douglas Field sold 1,000 shares of Tesla stock. The shares were sold at an average price of $334.87, for a total value of $334,870.00.
