Rather, Mr. C might want to go back to a subject he knows very well, the unfolding disaster at the SolarCity subsidiary. Some links below.
From MarketWatch:
‘The corporate-governance disaster that is Tesla continues,’ says one of the fiercest critics of Musk and company
Tesla shares are down 5.8% since CEO Elon Musk’s Aug. 7 go-private tweet
Jim Chanos, the prominent investor at the head of hedge fund Kynikos Associates, has some choice words for Tesla Inc. and its board a day after CEO Elon Musk put the kibosh on a plan to take the electric-car maker from out of public hands:
Musk in a blog post wrote on Friday that “given the feedback I’ve received, it’s apparent that most of Tesla’s existing shareholders believe we are better off as a public company.”
Musk stunned fans and critics of Tesla alike on Aug. 7 when he announced plans to take the car manufacturer private at $420 a share, describing that he had “funding secured,” suggesting that the process was in its later stages....MOREIn pre-market trade the stock is at $313.50 down $9.32 (2.89%) after dipping as low as $303.52.
Some previous commentary on SolarCity and the merger:
August 1
On Elon Musk: Some People Are....Different (and the phony SolarCity invoices) TSLA
June 21, 2018
Reuters Exclusive - "Tesla to close a dozen solar facilities in nine states: documents" (TSLA)
Dec. 18, 2017
So, How Was Tesla's Purchase Of SolarCity Not a Fraud? (TSLA; SCTY)
Dec. 4, 2017
The Short Argument Against Tesla
Mr. Chanos was taken to the cleaners by Mr. Musk on SolarCity, had Tesla not bought it, SCTY was on its way to bankruptcy court. We have quite a few posts on the bad blood between the two, use the 'Search Blog' box search term SCTY if interested....
TSLA $302.87 Down $3.66, last (1.19%)
Oct. 25, 2017
"Tesla cites performance reviews as it fires SolarCity employees, though workers say reviews never took place" (TSLA)
The question that comes to mind is: Was the acquisition of SCTY a
July 27, 2017
Why SolarCity Has Become a Shell of Its Former Self Since Tesla Buyout (TSLA)
This is a $3,000,000,000 scandal and no one seems to care....
June 22, 2016
SolarCity/Tesla: Analysts React (SCTY; TSLA)
Not only is Tesla taking on almost $3 billion in SolarCity debt, it is also buying into the problem of even more negative cash flows, both Operating and FreeCashFlow.
Which of course, along with the corp. governance nastiness, explains why Tesla has lost almost 11% of its market cap, amounting to $3.14 billion on the 133 million shares out and more than the entire market cap for SCTY (98,296,422 shares at $22.30, up 5.2%).
The market is saying SCTY is worth less than zero to Tesla.
We'll have a lot more to say about this in the coming days....
Tesla-Solar City: Cousins Shouldn't Get Married (to each other) TSLA; SCTY--UPDATED
So, Who Will Write A Fairness Opinion On The Tesla/SolarCity Deal? (TSLA; SCTY)
More On SolarCity/Tesla and Fairness Opinions (SCTY; TSLA)
"Elon Musk Faces Cash Squeeze at Tesla, SolarCity" (TSLA; SCTY)
"Short-Seller Chanos Calls Tesla-SolarCity Merger 'Crazy': CNBC Conference" (TSLA; SCTY)
Today In Depreciation: Does Tesla Really Understand What It’s Buying in SolarCity? (TSLA; SCTY)
Tesla, SolarCity Tumble Ahead Of New Merger Financials (TSLA; SCTY)
Attentive reader may have noticed we didn't cover Mr. Musk's press conference on the roof tile solar panels last Friday. We've been at the market long enough to recognize a master magician's "hey, look at this" misdirection. The tiles aren't going to matter to anyone for at least a year, probably two, and by then I would expect the market to have changed to the point that they will be recognized as a niche at best.
The oohing and ahing from the assembled journos was kinda funny though; in a naïve, never had to bet real money sort of way....
October 13, 2016
"Wait, Tesla Motors Might Need to Raise $12 Billion?!?!" (TSLA; SCTY)
And many more, use the search blog box if interested.We've been thinking $6 billion to cover the build-out of the factories in Fremont, CA and Nevada and the New York SolarCity plant along with funding the higher cash burn after the SCTY merger.
And we were at the high end....
