The Q4 2017 Results and Panic at Tesla Central
Tesla just released their Q4 2017 earnings and as many expected, it’s more bad news. Even the “good” news was hiding more bad news beneath the surface. Improved cash flow? Not really, Tesla hoarded ZEV credits and cashed them in all at once and they have deposits on the money-losing roadster and semi-truck. For the non-accountants in my audience, deposits actually are liabilities on the balance sheet.
What I found the most entertaining about all of this didn’t even have anything to do with Tesla per se. It was how Elon Musk timed the launch of his Falcon Heavy rocket right before Tesla reported all the bad news. The desperation at Tesla central must be getting thick. Thick enough for their Chief of Sales and Service to call it quits. How many high-ranking Tesla executives have quit in the last 12 months? I may have to go look that up and write a post about it. The insiders know the full picture of what’s going on and they’re voting with their feet.
I don’t blame Elon Musk for pulling such a blatant stunt at misdirection. With the tide of public opinion turning against Tesla, what else can he do? By now everyone pretty much expects Tesla to simply go bankrupt at some point. It’s an easier prediction than ever to make. The Tesla defenders seem to be fewer and fewer these days. We’re all just waiting to see who’s the most accurate at pegging the timeframe.
Tesla’s downfall isn’t without grace. The rocket launch/earnings release reminds me of Buzz Lightyear falling in the original Toy Story kid’s movie. Yeah, Musk’s auto empire is falling, but at least it’s falling with style. And how fitting is the sight of a Tesla roadster getting jettisoned out into the cold vacuum of space to be destroyed by radiation? That about sums up Tesla’s situation back here on Earth.
Now available in iBooks —> The Tesla Bubble
I don’t blame Elon Musk for pulling such a blatant stunt at misdirection. With the tide of public opinion turning against Tesla, what else can he do? By now everyone pretty much expects Tesla to simply go bankrupt at some point. It’s an easier prediction than ever to make. The Tesla defenders seem to be fewer and fewer these days. We’re all just waiting to see who’s the most accurate at pegging the timeframe.
Tesla’s downfall isn’t without grace. The rocket launch/earnings release reminds me of Buzz Lightyear falling in the original Toy Story kid’s movie. Yeah, Musk’s auto empire is falling, but at least it’s falling with style. And how fitting is the sight of a Tesla roadster getting jettisoned out into the cold vacuum of space to be destroyed by radiation? That about sums up Tesla’s situation back here on Earth.
Now available in iBooks —> The Tesla Bubble
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