Here’s an interesting take by Greg Barker on why the U.S. Government seems keen on letting Elon Musk get away with breaking the law on multiple fronts. It’s a cynical view that Musk is a distraction for the impoverished masses.
Now that Theranos’s Elizabeth Holmes is out of the picture, Musk has become crony capitalism’s chief beneficiary. He’s the vaporware emperor who has no clothes, but the bogus “visionary tech genius” narrative surrounding him will, and must, prevail. The U.S. establishment needs to prop up the Muskian empire. It distracts poor and impoverished citizens from risinginequality in America by reassuring them that innovation and prosperity are reaching new heights. Which, according to fellow vaporware enthusiast, Richard Branson, and his “space flight”, is apparently only 264,000 feet. —Greg Barker
I don’t really agree that the façade which Musk represents is aimed at the “impoverished masses”. It seems to me that it benefits the elite much more who invest in fraud schemes like Tesla.
But I agree with Greg 100% that Musk’s empire was teetering on the brink of collapse. If Solar City had gone down, it would have dragged Tesla and SpaceX along with it. And the only way to get that deal past investors was to stage a fake product demo. This was fraud through and through.
This is why Musk is on the record as saying that “without him Tesla would die”. It’s because Tesla is a poor money-making machine. Tesla has incinerated over $10 billion dollars of investor cash. And if you subtract the government mandated ZEV carbon credits, most of their tiny profits are gone too. Without the fraud, Tesla would’ve died in 2019.
I think a lot of people still misunderstand why Tesla is considered a fraud by so many in the financial world. They see that the cars are real so they ask “how can Tesla be a fraud”.
For starters, have you noticed that Tesla keeps announcing updates to their FSD software that make little difference? Did you know that according to accounting standards, as various “steps” are achieved that revenue can be released from the accruals?
They don’t understand that Musk isn’t just selling cars. He’s also selling the stock to investors. And the stock price implies a future profitability that will never come to be. There will be no revenues from Solar City synergies, driverless taxis, no energy revolution, no insurance company profits, no semi-truck profits, etc. It’s all a fraud to drive the stock price up. And it’s going to come to an end one day.
I don’t really agree that the façade which Musk represents is aimed at the “impoverished masses”. It seems to me that it benefits the elite much more who invest in fraud schemes like Tesla.
But I agree with Greg 100% that Musk’s empire was teetering on the brink of collapse. If Solar City had gone down, it would have dragged Tesla and SpaceX along with it. And the only way to get that deal past investors was to stage a fake product demo. This was fraud through and through.
This is why Musk is on the record as saying that “without him Tesla would die”. It’s because Tesla is a poor money-making machine. Tesla has incinerated over $10 billion dollars of investor cash. And if you subtract the government mandated ZEV carbon credits, most of their tiny profits are gone too. Without the fraud, Tesla would’ve died in 2019.
I think a lot of people still misunderstand why Tesla is considered a fraud by so many in the financial world. They see that the cars are real so they ask “how can Tesla be a fraud”.
For starters, have you noticed that Tesla keeps announcing updates to their FSD software that make little difference? Did you know that according to accounting standards, as various “steps” are achieved that revenue can be released from the accruals?
They don’t understand that Musk isn’t just selling cars. He’s also selling the stock to investors. And the stock price implies a future profitability that will never come to be. There will be no revenues from Solar City synergies, driverless taxis, no energy revolution, no insurance company profits, no semi-truck profits, etc. It’s all a fraud to drive the stock price up. And it’s going to come to an end one day.
Musk has the audacity to say that the public accounting firm of Ernst & Young is lying. Interesting. Between Musk and EY, one of these two entities has been known to play fast and loose with the truth on a regular basis. And it’s not EY. In fact, when you want an impartial judge that gets as close to the “gospel truth” as possible, you can’t really do any better than one of the big accounting firms. It’s who any board of directors will call in to find out if any of their management staff is “making stuff up”.
With Musk, up is down and down is up.
With Musk, up is down and down is up.
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