Tesla: You can lie about Funding Secured and suffer no consequences

by JDH on August 11, 2018

Yes, I got killed on my Tesla short play.  I assumed that when they released horrifically bad results, the stock would tank.  I assumed that repeated customer complaints about crappy car quality would cause the stock to tank.

Apparently not.

All it took was a tweet from Elon Musk to “confirm” that financing was confirmed to take the company private at $420 per share.

Yup.  “Funding secured”.

Of course this is a lie.  Investor support comes in the form of cash.  What investor group has $70 billion to complete the largest “go private” transaction in corporate history?

None, apparently.  “All it takes is a shareholder vote” is a lie.  What you really need is $70 billion to buy a company that can’t make cars, and can’t make money.

It ain’t happening, folks.

But, as I have said before, imminent and inevitable are not the same, so this scam could continue for many more weeks or months.

Time will tell.

See you next week.