24 Comments
Jul 29·edited Jul 29Liked by Lawrence Fossi

Lawrence, that bit about how Tesla might no longer qualify for inclusion in the S&P 500 was an educational moment I loved in this great piece. Thank-you for making that so clear a non-college graudate such as myself can understand your lawyerly explanations. I admire how you go out of your way to speak and write in such beautiful, concise language instead of lawyerese.

I believe this board and Musk have killed this company with what has always appeared to be complicit collusion.

The worst board members are those who were present when Musk has done drugs - or who have done drugs with him. Being in the hospitality business for 40 years, I know alcohol and drugs are the key to people confessing secrets to one another in bars & nightclubs. Lovers lose their inibitions and awareness of their speaking volume when impaired. Old friends of mine who ended up in black tie private clubs or who cater upscale private parties tell me businessmen are notorious for spilling knowledge shareholders have never heard. And yet the board knows of his drug use and doesn't act in behalf of shareholders?

Again, I can't shake the board knows certain board members have partied with Musk. They also know another board member flew Musk to his property in Hawaii to dry out. How can they with their duties, to protect and serve shareholders, maintain and abide with Musk as their status quo Techno King at Tesla?

The Tesla board sees his drug use amp up his extreme Xitter posts. His posts become worse and more embarrassing by the day. In secret, I bet you board members are in panic.

And I believe this board's nervousness is expanding when they read how others who once were close to Musk are now posting the most embarrassing snapshots of their soul-sucking realities in dealing with an ever more vicious Musk.

This past week, I thought the posts from his daughter exposing his lies about her youth and vindictiveness, and then from Grimes' mother yesterday about him not responding to scheduled child visitations for a beloved grandmother's funeral, were the most insightful and hurtful examples of Musk's sociopathy I've ever read. And I keep it keenly in mind these two examples just came to light last week.

I can't get past how the monster inside him has grown so large that his family and extended family either defy and fight the His Nibs lying and arrogance, or they cower and beg him, crying on social media, for him to show some humanity in his black heart. I have never seen the likes of anything like last week when it comes to Musk's cold-hearted sociopathy being embarrassingly cruel.

There has to come a point where people once enamored by him finally realize the evil which lies beneath their cult's hagiography of Elon.

There comes a time when people must realize any purchase of products, stock, or Xitter use, is support shown to Elon and it is feeding this dangerous narcissist who is an Enemy of Democracy.

That said, I'm hoping in the future you will be the one to interview the one female board member with what sounded like a conscience and who quit not long ago. I bet you when this blows up in investors' faces, she'll finally be able and willing to tell what was really going on. Tesla's Enron Moment, I sure hope you're the author who explains what was going on behind the scenes with the board.

The book needs you as the lead invesigative writer working with couple of our best $TSLAQ critics steeped in forensic accounting. Man, what a book that would be.

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Great comment, ROY.

I have begun wondering what Tesla's D&O coverage looks like at this point. It feels as if we are getting to the point where the directors will have to rely on an indemnity from the lying CEO.

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So many excellent things to ponder here, and in the @paulferrell comment, too. I'll be back to offer some further thoughts.

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Jul 29Liked by Lawrence Fossi

I couldn't disagree more about TSLA getting excluded from the S&P. It is a cult stock. S&P is cowed by the cult. They will bend over backwards to keep TSLA in the S&P, thereby keeping TSLA's cult of speculators in the S&P.

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I hope you noticed the final section of the piece I published yesterday.

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I'm getting lots of pushback on this from others, too. I'll have some further thoughts for you soon.

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Jul 29·edited Aug 1Liked by Lawrence Fossi

I am sure you are correct, but at some point TSLA could get into a position when it can no longer be kept in the S&P 500. This might happen if the board continue to act as carpet-baggers, strangling the company in the process. Serious cash remains to be raised for future model programmes and things like Model S II, Model X II, Cybertruck as well as Semi have not really produced a return on investment, yet.

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Jul 29Liked by Lawrence Fossi

Another great article! The corruption and greed of Musk & board is astounding. Can't believe investors keep buying into his obvious lies.

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Jul 29Liked by Lawrence Fossi

When your board is friends and relatives, it’s not really that astounding.

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We are all suffering from recency & anchoring biases. When this turns, it will turn hard.

Btw, I most certainly do NOT short TSLA. And I discourage others from doing so as well.

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Jul 29Liked by Lawrence Fossi

Great article! That said, all your points are well and good, but NQ is ripping. The cult just bids and bids and bids.

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Jul 29Liked by Lawrence Fossi

When investors live in fantasy, is reality relevant?

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Jul 29Liked by Lawrence Fossi

Superb. As I understand it, the “Special Committee” consists of one person. This person “interviewed” Elon in a process critical to the proxy statement $25 billion downside of a “no” vote. This mysterious “Interview With The Vampire” is indicative of the surreal nature of the $60 billion pay package and the process used to obtain it.

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"Interview With The Vampire"

I love that!

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Aug 1Liked by Lawrence Fossi

As I recall, at one point, Tom Cruise was hanging from the ceiling during his interview. Maybe Elon was doing the same during his mysterious interview.

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Jul 29Liked by Lawrence Fossi

I have often wondered what percentage of Tesla free float is held by index funds or other index products. That's got to be a very big number.

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Jul 29Liked by Lawrence Fossi

A great article to remind the Tesla board they are appointed to look after the interests of shareholders as well as the company as an entity including employees, rather than their own interests - in other words, governance. The shareholder lobby by board members showed very poor governance. Once again, thank you Mr Fossi.

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Jul 29·edited Jul 29

The 120 forward PE is highly unrealistic because it implies a bounce back in earnings. With Musk supporting the Orange monster and 93% of his us customers being democrats, the earnings are going to go down, rn the PE is nearing 140, with a boycott it may double or triple

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Jul 29Liked by Lawrence Fossi

Also have you seen der wankpanzer Tesla Cyberdumpster?

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I've seen several. I think by this point it's safe to say that the "halo effect" some imagined would result from the CT's introduction is not quite working out.

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Aug 1Liked by Lawrence Fossi

The Cybertruck can not be sold in the EU27 or UK due to the number of sharp edges and - I think - viewing angles may also not be legal. In effect this is a USA only product. It needs a new upper skin to maximise the majority of the investment and so reach other markets at something like a sane price for customers.

This will not be a small amount of cash, but better than throwing the whole thing away.

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European roads are, on the whole, more narrow than US roads. Tough sell for the Cybertruck.

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Amazingly the Ford F-150 Raptor, which easily spills over all the markings of a car park space, has a small but dedicated following. Cybertruck is slightly smaller, or, put it another way - slightly bigger than the average BEV tarmac road crusher. So, yes, not Model Y or Model 3 level seller, but of interest.

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The Chancellor’s reference to Gates and Bezos not needing a gargantuan pay package beyond their equity stake to motivate them leads to another point. They both stepped aside and Microsoft and Amazon are doing just fine. Way in excess of TSLA market cap. Any truly independent board would consider those factors.

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