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.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
Yup. “Funding secured”.
Investor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote. https://t.co/bIH4Td5fED
— Elon Musk (@elonmusk) August 7, 2018
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.
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