But should a potential investor or customer engage their System 2 before buying Tesla stock or a Tesla vehicle, the case for buying the car — which is expensive, attractive, and seems to work fine as long as the driver can keep the battery charged – is far stronger than the case for buying the stock.

This comes to mind in considering the ginormous cash crunch facing Tesla due to its $2.6 billion merger with SolarCity — the solar energy service run by his cousins. (I have no financial interest in the companies mentioned in this post).

This merger offers investors four compelling reasons to bet against Tesla.

1. Strategic Rationale Is Weak

2. Musk Is Gripped By Delusions of Grandeur 

3. Combined Companies Can’t Grow Out of Their Cash Conundrum

4. Tesla Has Weak Corporate Governance

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