Friday, May 1, 2020

WTF Is Up With Elon Musk?

OMG!  Is Elon off his meds?  I've never seen him act this erratic and strange before.  Well...I've never actually seen him, seen him, like in person, but the tweets have been Trumpian bizarre lately.  The investor conference call on Wednesday was a mess any time Elon went off topic.  I was left wondering, is it okay for a company CEO to go on an expletive laced rant publicly?  Well...no.  But what if he's Elon Musk?

Before discussing the ethics of the usage of profanity for all to hear while running a publicly held company, let's go over some of Elon's dumbest moves while CEO of Tesla.

Some of Elon Musk's Dumbest Moves

In 2018, he broke the law by tweeting he had Funding Secured for a buyout of TSLA at $420 a share by a Saudi fund.  This would've taken the company private.  Outcome: He settled with the SEC ($20 million fine) and lost his role as Chairman.

The previous situation came on the heels of Musk's war with short-sellers.  Fiercely attacking your critics on social media is NOT a good look.  Reminds me of someone...

In 2019, Elon decided to poke the sleeping bear.  You see, what had happened was...Elon needed approval from legal before tweeting anything about TSLA.  On February 19th, Elon tweeted out that TSLA would make around 500,000 cars, a "blatant violation" of the 2018 settlement, according to the SEC.

2020 has been a strange year, hasn't it?  If seeing the price of a barrel of oil go negative weren't strange enough, we're all still semi-confined at home, and in constant danger of catching a deadly disease (unless you already have) that wasn't around a year ago.  Now we gotta witness Elon losing his shit!  The market didn't care.  TSLA's Q1 numbers looked good.  

Probably Not A Good Idea

Expressing an opinion about the handling of the Covid19 pandemic is bad people!  Nothing good comes of it.  Sure, YOU can take to FB and vent all you want.  You might lose some of your "friends" over it.  At worst, you might lose your job.  But most of us plebs aren't going to diminish the market value of the company we work for.

Bring on Elon's tweets from today.  More patriotic ramblings related to his stance on the handling of Covid19 AFTER "Tesla stock price is too high imo".

             

 First thought...wtf is Elon doing?  I was a shareholder in February of this year, and got out before the Covid19 bloodshed.  If I were a shareholder today, I'd be pissed off!  The stock tumbled as much as 13% and wiped out $14 billion of Tesla's value.  Is it not enough that today's investors have to factor in the market risks associated with a Twitterer in Chief?

It's not a secret that TSLA burns wads of cash.  It always has.  The Tesla story has always been about growth.  And Elon.  But now it's mostly about Elon.  He's a total loose cannon.  Cursing, obsessively tweeting, getting deeper into politics than ever before, attacking critics over social media, what's next?

Look, I like Elon when he's focused.  The man is trying to save the human race by getting us all to Mars.  Respect.  However, it's not his job to let investors know the stock is overbought!  He did the shorts a favor today.  Oh the irony.      

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