Mark Spiegel wrote in a letter recently to investors why he's short on Tesla.
Wow, the sheer volume of links he included is astounding.
It's only a matter of time before the stock bubble bursts but that may not be until after the Model 3 is launched. The Model 3 will be the project that pushes Tesla to the point of no return. Up until now, and including the Model X, Tesla is able to mitigate their losses through high margin product sales. The Model 3 will go in a new direction that ushers in lower margin products that MUST be made up for through much higher volume. When those unit sales don't materialize the stampede will occur. Until that happens, this stock is riding on hope.
Wow, the sheer volume of links he included is astounding.
It's only a matter of time before the stock bubble bursts but that may not be until after the Model 3 is launched. The Model 3 will be the project that pushes Tesla to the point of no return. Up until now, and including the Model X, Tesla is able to mitigate their losses through high margin product sales. The Model 3 will go in a new direction that ushers in lower margin products that MUST be made up for through much higher volume. When those unit sales don't materialize the stampede will occur. Until that happens, this stock is riding on hope.
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