This article popped up on my feed on the weekend:
All companies in a capitalistic system need to earn profits and those profits need to be attractive relative to the amount of shareholder capital employed. Tesla has never earned an annual profit. Along with digital currencies and Unicorns, Tesla appears to be caught up in a gold-rush-fever type of emotional response, both from a “they will take over the world” and a “they will save the world” combination of hopes, instead of their owners looking at the numbers …
… As anyone with automotive experience knows, profit margins are far higher on bigger, more expensive cars. Therefore, the faster Tesla makes Model 3’s, the more money they will lose.
I’ve been saying this for a while now. Elon Musk is the biggest fraud the world has ever seen. He recently approved an increase in his annual salary to $5 billion per year, more than every other CEO of a top fortune 500 company combined.
And this is the problem that I have with shorting Tesla stock – the timing.