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Elon freakin’ Musk

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Tesla produces beautiful cars in my opinion, but their business is a pile of garbage. Elon Musk is a genius puppet master and extremely scatterbrained.

As I mentioned last week, I personally believe in shorting Tesla stock. Let me justify my statement before you think I’m nuts.

Starting with the positive, I love the cars that Tesla produces. I think that their lineup of three models of cars works great to target different segments of the market. My personal favorite is the Model X as I love the butterfly doors.

Now that I have said something nice, allow me to trash the company.

Starting with the puppet master himself, Elon Freaking Musk. There is no doubting that the dude is insanely smart and has started companies that help the world every day. Behind all of the good though lies a troubled businessman.

If anyone studies how Mr. Musk keeps Tesla stock so high, they will start to see how he abuses the media for his capital benefit.

Essentially Musk keeps the public distracted from the dysfunctional business that is Tesla. When Tesla has a tragic event such as a self-driving car crash, Musk attempts to distract the public by announcing a new product.

Obviously it is great to have a long-term growth plan, however, there is no reason to announce a new vehicle every six months such as a semi truck, Model Y (hinted at), or the Roadster. Sure it is good to have these new aspirational vehicles, but if the company continues to miss its production numbers for its existing vehicles.

Please finish producing the cars demanded before running to the media with some new vehicle that you will miss production goals for in three years, and say “oh, we have made much progress and plan on rolling them out next year.” You can only say next year so many times before you piss off investors and decide to announce a new project for the next three years.

Also, if Elon Musk wants to remain chairman and CEO of Tesla he needs to discontinue his work at his other companies including, but not limited to Space X, The Boring Company, and Open AI.

Tesla is a public company, and as CEO of a multi-billion dollar public company, it is the CEO’s duty to investors to devote their lives to two things: their family and the company. That’s it, he needs to eat, sleep, and breath Tesla.

I don’t care if he is more passionate about one of his other entities if he wants to pursue something other than Tesla, that is fine, leave Tesla and hire a new CEO.

Next, take a look at Tesla’s massive pile of debt. According to Yahoo Finance, in 2017 the company had $12.57B in dept.

For crying out loud! The company loses billions of dollars every year, and when they deplete their small stack of cash they will need to raise more debt or even more scary, through equity!

It will only take the slightest recession to take down Tesla to the point where they cannot pay their debts and vehicle orders will slow.

If Musk wants to prove to me that he is a business genius, he will have to figure a way out of the stormy waters that he will endure some time in the next three years.

This has been a rant the loosely justify my short on Tesla stock.

The founding story of Tesla and how it has gotten to the point it is at today is nothing short of impressive, but the ship is headed for a massive iceberg.

Short Tesla.

DISCLAIMER: Cameron is not a certified financial advisor and all things stated should be considered solely as entertainment and NOT for financial transactions.

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Elon freakin’ Musk