Monday, 10 Dec 2018

Will Tesla go bankrupt? Should it short on the rebound In progress ?

I am basically a big fan of Elon Musk.

But in terms of cash, since a certain history of 2015, I got used to put my favorites aside!

Tesla quotes a fortune … the highest at $ 350, then a drop on $ 250 before bouncing today on $ 300. $ 50 billion capitalization without having ever earned the least cash, seriously, if it is not great art ????

tesla bankruptcy

The concern is that our friend Elon, genius creator, has a little trouble tightening the bolts and running. We often forget that a company, it remains a rather needy, repetitive exercise, to which the Japanese excel over the long term.

The genius of creation can not compensate.

Elon Musk made some choices. Obviously seeing his statements, he likes factories. It’s his big toys thing, with robots everywhere. But aside from that, his thing also seems to tickle the limits in borderline mode. It goes or it breaks. More than once, he has come close to the correctional …

Elon Musk has made a choice, build his latest fully automated factory Tesla, a choice not recommended by his entire board.

As a result, the board was right and the delivery delays are huge, just as Tesla does not manage to scale the volume to levels sufficient to make money.

Tesla is crying money. The more time passes, the more resources diminish. So much so that the idea of ​​bankruptcy or recapitalization is starting to circulate in US finance.

It is also said that 5 big players own more than 50% of the Tesla float. Adam’s invisible hand is more like the usual US oligarchic capitalist mafia. The behavior of these 5 large shareholders depend in part on the future of Tesla. In decoded language, Elon’s coucougnettes are likely to feel the string tightening very well … if the oligarchy decides to squeeze or even let go of the great holy man!

More serious, some traders (already short) report that profitability figures are phony. Tesla will never be able to release the expected margin for each model sold (but not yet produced …). Competition is also waking up among other manufacturers who sniff the new consumer demand on a segment to cash, as the state sponsors the purchase of a clean vehicle said of the future …

All this put end to end, the story still stinks of the ass.

Attack the action in shorts now, I would not do it. But if a bearish trend emerges or if bearish patterns are put in place, the short will be worth the detour.

As crazy as it may sound, Tesla is a special case that requires beliefs, faith to accept the delirious valorization of course, virtually unheard of in the stock market history.

We saw this on Amazon and it worked.

On the other hand, there are plenty of guys who fooled themselves, like GE, the great General Electric who was literally looted by the high finance to the point of being at the lowest now over 25 years.


Charles Dereeper

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