Monday, August 26, 2019

"He's Full Of Shit": New Bethany McLean Expose Eviscerates Elon Musk's Solar City Bailout (TSLA; SCTY)

That's ZeroHedge's headline. They forgot the acute accent (not to be confused with a cute accent) in exposé.
Over the years we've had some thoughts on Tesla's purchase of SolarCity, oh look, here's 2017's "So, How Was Tesla's Purchase Of SolarCity Not a Fraud? (TSLA; SCTY)". Unfortunately it didn't get a rise out of Elon, discovery would have been fun.

We like Bethany McLean, Vanity Fair not so much since finding out they spiked stories on Jeffrey Epstein and his victims.
And from ZeroHedge:
Bethany McLean's reputation proceeds her, with good reason. She's mostly known for tackling the Enron scandal and the 2008 financial crisis - two of the biggest financial frauds over the last decade or now. She co-authored Enron: The Smartest Guys in the Room, which was later made into a movie.
And now, she's setting her sights on Elon Musk and Solar City, something we expected was about to happen last week.

As we said yesterday during our report about Vern Unsworth's lawyer threatening Elon Musk, the boy wonder has created so many legacy legal liabilities, it is tough to track which ones - and when. Now, it's appears that one of the biggest whoppers, his "bail out" of Solar City that skeptics such as this website and countless others long believed to be a sham, has finally been thrust into the limelight by an author whose gravitas simply can't be ignored.....

If the headline on that FRAUD post (and the dozen links within) doesn't get the point across, here's another one on Elon and his cousins the Rive brothers:
August 1, 2016
Tesla-Solar City: Cousins Shouldn't Get Married (to each other) TSLA; SCTY--UPDATED

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....
And now, dammit, for some reason I want to throw that damn accent mark on Élon and Rivé and...

See also:
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.... 

And many, many more, use the search blog box if interested.