|Aside from concerns about the quality of the financial statements, Mark Tepper, president and CEO of Strategic Wealth Partners mentions how “there are stories of people not getting their vehicles, and then not getting their refunds for months.” While another concern being echoed among Tesla bears is in regards to the company’s growing reputation for being unable to deliver on the promises Musk makes.
“He hasn’t hit on any target or deliverable with any sort of reliability for years now. Why should I believe him now? Remember in 2016 when he said they’d be profitable and didn’t need any more money? Or when they said that in 2017? He’ll probably be saying the same thing at the bankruptcy hearing.”
-Harris Kupperman of Praetorian Capital
In addition to the red flags surrounding management is the latest news that January sales are down significantly, as the tax incentives have begun phasing out.
(chart courtesy of @teslashcarts)
Which makes it even more interesting to see what will happen in the next few days as the bond payment comes due. Especially with Musk creating a new round of suspense on Wednesday with a tweet that “some Tesla news” will be delivered on Thursday.
So if Musk is going to convince investors that the company is on solid footing, under good management, and that the data is accurate, he has some work to do. Because simply based on the events of the past year, as well as growing skepticism in the investment community, the possibility that Tesla will be exposed as an Enron is becoming a more real view in the marketplace.
To date the company has been able to navigate these issues. Yet especially if the Fed were to ever remove the unprecedented amount of credit it has injected into the system over the past decade, if the concerns regarding Tesla are indeed accurate, it may well in time rival Enron as one of the biggest financial scandals in history.
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