Jim Chanos called Tesla Motors’ proposed merger with SolarCity”crazy” and “the height of folly” while outlining his short positions in the stocks on Tuesday.
The short-seller from Kynikos Associates estimated the combined company would burn through $1 billion per quarter and “constantly need access to capital markets.” He described SolarCity’s business model as “just plain uneconomic.”
Read more "This shows why Tesla-SolarCity is a ‘crazy’ merger, Jim Chanos says"Since Reyes’ departure from Tesla, Khobi Brooklyn, Director of Communications, became the most senior employee in the department and the de facto “Head of Global Communications”. We now learn that she is also leaving the automaker just a few months after Reyes.
As previously mentioned, Reyes has been VP of Communications at Tesla on two occasions. First from 2009 to 2012, when he left for a 2-year stint at Square, a financial service and mobile payment company. He then came back to Tesla in 2014. Brooklyn joined Tesla around the same time as Reyes (2009) and followed him to Square and back to Tesla again in 2014.
The company didn’t hire or promote another Vice President when Reyes left in March, but sources familiar with the situation told us that the company’s General Counsel and Elon Musk’s former divorce attorney, Todd Maron, among others had oversight and executive responsibilities of the communications department.
We asked Tesla for a comment on the situation, but our request went unanswered. The company rarely comments on employee matters.
Read more "Tesla’s Head of Communications departs"Summary
Beyond the minimal short-term effect of the new announced financing agreement, the fact that Tesla continues to choose every way possible to “spin” its narrative in a dissembling way is another red flag for Tesla investors. The Deutsche Bank financing agreement is just a drop in the bucket of all of the capital that Tesla will need over the next three years but the company just couldn’t resist suggesting otherwise. What’s amazing to me is that there is also not a lot more scrutiny about Tesla’s claims that its May 2016 financing was supposed to be all the capital needed to support “full production” of the Model 3 and to complete any additional investment needed for the Gigafactory.
Read more "Tesla’s New Lease Financing Disclosure: Who Writes This Stuff?"Elon Musk‘s trying to save his legacy off the backs of Tesla shareholders … so claims a Tesla shareholder who’s suing the icon.
The shareholder claims Elon’s move to infuse his failing SolarCity with $2.6 billion of Tesla stock is outrageous, self-involved and irresponsible.
According to the docs … Elon’s trying to run Tesla like a privately held company, moving money around not because it’s right for the car company but to build his own legacy of changing the world.
The lawsuit claims Elon doesn’t have his eye on the ball … that Tesla itself is operating in the red, burning cash, and he should focus on building electric cars. The stockholder calls Elon’s obsession with SolarCity “a dangerous distraction.”
The shareholder says SolarCity is a stinker … the company went on the auction block recently and didn’t attract a single bidder.
Read more "Tesla Shareholder Sues … DON’T BURN OUR MONEY TO SAVE YOUR CRAPPY SOLAR CO."With SolarCity owing money to SpaceX — Musk’s unlisted rocket developer — and insiders, and Tesla needing cash itself, the electric-vehicle maker’s highly valued shares are critical. In a rational world, holders of those shares would consider SolarCity’s wide discount alongside the fact that, despite this apparent bargain, no other bidders have emerged, and conclude Tesla is clearly overpaying and they should vote the deal down.
One twist they have to contend with, though, is that, in the absence of near-term profits, the value of Tesla’s stock is inextricably bound up with belief in the abilities and vision of Musk himself. While the decision to buy SolarCity may have dimmed that aura somewhat, a potential collapse at SolarCity if the deal doesn’t go through could be even more damaging — one of those damned if you do, damned if you don’t situations. Nothing is simple once you’ve entered the Muskplex.
Read more "That SolarCity Spread Spells Trouble For Tesla"