Rocketman or conman?

They may look sexy, they may, as a commenter on an earlier post so eloquently put it, “go like snot,” they may save the planet, one may even have been launched into space – but the laws of economics still apply and?Harris Kupperman has some serious misgivings about the longevity of the Tesla production:?Quote.

Tesla?s Bullshit Conversion Cycle is the key financial metric underlying this scheme (from @ProphetTesla)

I originally started following Tesla as I felt it was a structurally unprofitable business nearing a cash crunch as hundreds of competing products were about to enter the market.

As I?ve studied Tesla more closely, I?ve come to realize that Elon Musk appears to be running a Ponzi Scheme disguised as an auto-manufacturer; where he has to keep unveiling new products, many of which will never come to market, in order to raise new capital (equity/debt/customer deposits) to keep the scheme alive.

The question has always been; when will Tesla collapse? […]

We?ve already seen the mass exodus of senior Tesla executives. When they say they ?want to spend time with their family,? it really means they ?want to spend less time in prison.?

Executives Fleeing Tesla Is A True Bull Market ?Up And To The Right?

Next, we have the first whistle-blowers?there will be MANY more. Currently there are at least 3 different ones feeding information to journalists. Using past frauds as a guide, once we get to this point of the media cycle, the fraud usually unravels pretty fast.

Given the perilous state of Tesla?s finances, they are in urgent need of new capital. The question is; who would want to invest new capital when Tesla is now admitting to knowingly selling cars without testing the brakes in order to hit some arbitrary one week production target? When a company admits that it will sacrifice vehicle quality and even risk killing its customers to win a twitter feud and start a short squeeze, regulators must step in.

The question is; what else has Tesla done illegally to hit its targets? We know that Tesla long ago passed over the ethical threshold of selling faulty products that have killed people?what other allegations will soon come to light?

Elon Musk demanded that Tesla stop testing brakes on June 26. Doug Field, chief engineer, resigned on June 27. Is this a coincidence? Of course not?Doug Field doesn?t want to be responsible for killing people. I think Tuesday?s article will speed up the pace of Tesla?s bankruptcy quite dramatically and I purchased some shorter dated puts after reading it.

Tesla is the fluke stock-promote that found a way to address society?s fascination with ?green technology? and the ?next Steve Jobs.? Elon Musk eagerly stepped into the role of mad scientist and investors gave him a free pass. It now increasingly seems that everything he?s done for the past few years was simply designed to keep the share price up, keep the dream alive and raise more capital?as opposed to creating shareholder value.

Along the way, customer safety has been ignored in order to hit production targets and appease the stock market. In addition to not testing brakes, a recent whistle-blower has accused Tesla of installing over 700 dangerously defective batteries into Model 3 vehicles. I suspect there will be many more allegations as whistle-blowers come out of the woodwork.

[…] I suspect it will all end soon. Theranos and Enron both collapsed within 90 days of the journalists getting up to speed. The reporters now know the right questions to ask and Tesla will be out of cash by the time they are all answered. […] End of quote.

Tesla vehicles may not burn petroleum products but the company is burning a lot of cash trying to get them to market.? There is an awful lot of red in this chart!