General Motors (GM) MAKES $6 per share and their shares are $34. That's infinity times what TSLA makes and 3 times what they TSLA wishes it would make and the stock is about 1/10th the price yet GM LOST 3.3% yesterday while TSLA gained 7% – this is MADNESS!
Oh, and I forgot to mention that GM also pays you a 4.3% ($1.52) dividend while you own their fine stock. GM is also makes the new Chevy Bolt (the Volt is their old model), which is essentially everything the Tesla Model 3 is supposed to be only the Bolt is already shipping and GM already makes 10M cars a year, 100 TIMES more cars than TSLA makes. That's current, proven capacity – not fantasy capacity.
The Bolt is priced at $37,000 WITHOUT the rebate that TSLA includes in their "starting price" and, with the rebate, the net on a Bolt can be less than $30,000 – about 20% cheaper than the non-existent Model 3. Even worse for Tesla, the Bolt gets 238 miles of range and they didn't have to spend $2Bn building a "GigaFactory" to do it.
If GM can buy, off the shelf, batteries that are as good as the ones Tesla HOPES to make in the future – what's the value of their new battery factory? Come on, it's not a brain-teaser – the factory is worth NOTHING – it's a pointless waste of money that was only and excuse for Musk to raise another $2Bn from investors to cover the losses at TSLA. Batteries are a readily available, low-margin commodity and having their own battery factory is nothing more than an expensive distraction for Tesla – one of many.
Back in February, we made great money shorting TSLA when they popped to $280 and we shorted them again at $280 last week and yesterday we adjusted our April play to a June $300 short, so we're bearish into earnings but, rather than argue Tesla valuations with hundreds of angry fans all day – I'll simply do this.
