Mr. Musk’s logic and assumptions are deeply flawed about SolarCity and Tesla

Summary We use Tesla’s SolarCity acquisition conference call language to show why Mr. Musk’s logic and assumptions are deeply flawed. We believe the transaction has negative synergies and SolarCity’s costs are likely to increase. SolarCity is not only unsuited to Tesla but there is inherent conflict of interest between the companies when it comes to […]

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Tesla Can’t Win This One

“Either Tesla loses because the deal is completed or Tesla loses because it not being completed requires losing faith on Elon Musk’s unbelievable promises and infallibility.” Tesla Is Built On Faith Tesla has made many unlikely promises. Things like bringing the Model 3 to fruition already during 2017 and to sell 100k of those cars […]

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SolarCity Destined for Bankrupcy

Why Solar City has a date with destiny. Point 1: Basically: Solar City is deceiving investors. “Stated differently, you can run a company that burns $100s of millions of dollars in cash, yet take on massive amount of debt/leverage, and include this in your definition of free-cash-flow, and Abracadabra you’re a good business. At best […]

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Has Elon Lost his Touch?

LOST GOLDEN TOUCH? The quiet support was drowned out by criticism as the stock fell. This deal feels like (Musk) has lost his Midas touch. I also feel like Musk is trying to do too much,” said well-known investor Jeffrey Gundlach, chief executive at DoubleLine Capital, which does not hold Tesla shares. Investors who short […]

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