Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Musk Carnage Continues: Analysts Baffled While Liberals And Tesla Owners Berate CEO

Courtesy of ZeroHedge View original post here.

Update 5/11/2020 0815AM EST: Elon Musk continued his war of words with – well, the entire world – last night, as Twitter continued to react to Musk's decision to sue Alameda County over not allowing him to re-open his Fremont factory. 

Former Secretary of Labor and Berkeley professor Robert Reich, who Musk had called a "boring idiot" in both English and Russian on Sunday took another jab at the embattled CEO, saying "Billionaires are not the answer".

Responding to one of Musk's insults, Reich said, "if only you had put as much effort into delivering the ventilators you promised as you put into this tweet."

Perpetual Tesla cheerleader Adam Jonas at Morgan Stanley also offered up his take on Musk's claims to want to move from California over the weekend. First and foremost, he predicted a monstrous $2 billion to $4 billion cash burn for Q2 and said GAAP loss estimates of $500 million could be too high:

We believe that the sentiment consistently displayed by Musk is likely out of genuine concern for the severity of the decline of profits and cash flow for the company in Q2. While we believe the liquidity / balance sheet of the company is intact, we are prepared for Q2cash burn to be on the order of magnitude of $2BN to $4BN,given large payable outflows and revenues down as much as 30% Y/Y.

In our view, while the situation is clearly out of Tesla’s control, Elon Musk’s urgency and willingness to take decisive action shows the impact the shutdown is having on the company globally. Taking a look at consensus numbers for 2Q20,expectations call for nearly $900MM in cash burn and GAAP net loss of ~$500MM; we believe these may still be too high.

He also predicted that Tesla's next U.S. Gigafactory would be announced in 1-3 months and could happen in Texas. The note does little to address the financial implications of such a move and estimates it could take "up to 3 years for a complete relocation from California".

Jonas still predicts a majority of the company's global production volume will come from Fremont over the next 2 years and also believes there is "morale risk" to employees from Musk's erratic behavior: 

We believe that there is risk to the morale of employees and staff currently in Fremont, as the questions of not only returning to work by June 1st in California continue to loom, but now the new question of continuing to work in California at all.

All OEMs and other contingencies in the supply chain are struggling with similar issues in the road to their targeted May 18th restart. As investors model a number of scenarios for cash consumption in Q2, we believe some attention should be paid to the potential problems for other counter-parties that could add to the volatility of near term financial outcomes.

But despite the massive predicted cash burn and the slate of numerous new risks, Jonas keeps his $680 price target on the name. As one does…

In the interim, Tesla owners and once-fanboys have been spotted on social media all weekend echoing the thoughts of these owners:

Sending liberals and Tesla owners further into a rage alike will be the fact that Sen. Ted Cruz openly petitioned for Musk to move his operation to Texas over the weekend, as well: 

For now, it still looks as though  it is Tesla's intention to re-open Fremont when Elon Musk, not the government, says so. 

--

Update 5/10/2020 0800AM EST: As he stated he was going to do yesterday, Tesla CEO Elon Musk filed an 18-page lawsuit that asked a federal judge to allow him to re-open his factory in Fremont.

"Alameda County's power grab not only defies the governor's orders, but offends the federal and California constitutions," the lawsuit said. The suit argues that Alameda County "had violated the due process and equal protection clauses of the Fourteenth Amendment and sought an injunction that would allow the company to operate."

Later in the day on Saturday, Tesla, likely covering for Musk's fiasco and trying to do damage control, put out a blog post called "Getting Back to Work". 

The response to Musk's actions this weekend from many on social media, including Democrats and left-leaning California politicians, was robust. CA Assemblywoman Lorena S. Gonzalez simply Tweeted "F*ck Elon Musk."

And she doesn't appear to be the only one that's "over" Musk and his antics. Comedian Michael Rapaport referred to Musk as "Ant Dick Man", saying "Guy thinks he's Tony Stark but he ain't".

"Fuck that bozo," replied celebrity jeweler Ben Baller.

Former Secretary of Labor and Berkeley professor Robert Reich called Musk "the worst of capitalism". Musk then responded, in Russian, calling Reich an idiot. 

"Hard times are a test of character; and by that measure Elon Musk is proving a total zero," said Columbia professor and Author Tim Wu:

"This is a perfect time to remember all the people who thought this guy was going to save the world," one journalist wrote. 

Finally, well known Tesla short seller, Yale law school graduate and former 30 year trial attorney Montana Skeptic broke down the (lack of) merits of Musk's lawsuit, before offering up his services pro bono to help out Alameda County in this thread:

Of course, if the SEC had just done its job the first time Musk committed securities fraud, we wouldn't be having to deal with any of this mess. But far be it for us to expect that.

--

Recall just days ago we reported that Tesla was sending people back to work at its Fremont factory in Alameda County before the area's lockdown expired.

Then, late last week, Alameda County responded by telling Musk that he could not re-open his factory. “We have not given the green light. We have been working with them looking at some of their safety plans. But no, we have not said that it is appropriate to move forward,” Erica Pan, interim health officer for the Alameda County Public Health Department, said on an online town hall meeting on Friday. 

That was enough to trigger a total Elon Musk meltdown. The CEO, who has been going off on diatribes about civil liberties on conference calls and podcasts alike, Tweeted out on Saturday that he is going to be suing Alameda County for not allowing him to re-open.

Calling it the "final straw" Musk also said he was going to move Tesla's headquarters out of California and to either Texas or Nevada.

Musk also called the county's interim health officer "ignorant", claiming she was acting "contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!"

Most importantly, however, she is acting against the interest of Elon Musk and Tesla. 

People on social media weighed in about Musk's meltdown:

Recall, on Tesla's recent earnings call, toward the end and increasingly angry, Musk unleashed a 5-minute rant complete with an f-bomb in which the CEO doubled down on his stance against the shelter-in-place orders that have gripped the United States economy in recent weeks, warning that the factory shutdowns are a "serious risk" to the electric automaker's business. 

Hey, thanks for all the tax breaks and subsidies, California, see you later!

 


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!