Tesla is on the verge of bankruptcy. That’s really… promising actually. Not only because Tesla is owned by the most narcissistic, asshole in the automotive industry, and believe me, that’s saying a lot, but because the boy wonder underling of the ‘stable genius’ is a complete asshole as a human being.
According to Investopedia.com, John Thompson of Vilas Capital stated, “That without any doubt, Tesla is on the verge of bankruptcy”. Not only is its competition ramping up, but Tesla’s rating has been downgraded again from B3 to B2.
TSLA, is trading down 9% on Wednesday morning and has fallen 35% from its high, having declined another 18.5% in the last three months.
Maybe the Dogeboy should have taken a scalpel to his own spending, but, no, of course not, he’s gifted, just watch any MAGA rally and by God, you can see it!
Thompson wrote a note to investors this week forecasting Tesla to crash within 3 to 6 months.
“As a reality check, Tesla is worth twice as much as Ford Motor Co., yet Ford made 6 million cars last year at a $7.6 billion profit, while Tesla made 100,000 cars at a $2 billion loss”, wrote Thompson.
According to Fortune.com,
“Tesla’s share price has fallen 58% since its peak in November 2021–and sales are down. In the last quarter, Tesla reported 8.5% drop in deliveries from last year.
Tesla’s business model of vertical integration is now a huge problem. Per Leander of London-based investment firm Clean Energy Transitions told CNBC,
“I actually think the company could go bust.” Tesla’s vertically integrated business model is only suitable for a company that expects rampant growth. “That’s a brilliant model when you grow because you have negative working capital so you actually get paid for growing and you capture all the margins.”
However, once sales falter, a company is stuck having to pay off the liabilities it incurred to fund those expenditures with a shrinking amount of cash. In essence, it now finds itself with growing debts and shrinking revenues: a dangerous situation for any company, especially one n as competitive a market as EV’s.
Much of the demand is slowing because other EV’s are entering the market, in particular, several Chinese companies are making cheaper models that are eating away at Tesla’s business.”
And that’s with 100% protectionist tariffs in place in the U.S.
Thankfully, the rest of the world thinks the Chinese vehicles are awesome compared to the crap that Tesla is putting out.
And, if that wasn’t bad enough, because of Dogeboy’s alienation of all of those in the western democracies, including non-democratic countries like China, — his odds of securing new buyers, and investors has as much hope as a snow ball in hell.
I can hardly wait to see the last Tesla on the production line.
Musk should call it, The Death Valley Model. It has a nice ring to it.
Since the man is a completely amoral shitbird, my hope is that BYD and all the other Chinese manufacturers destroy Tesla’s sales outside the U.S.
Maybe he can fire the last one to Mars.
Even those who want Tesla to succeed will likely dump their Cyberjunk vehicles while the selling is good.
Otherwise you’ll be able to buy a ‘Cybertruck’ for the cost of a Starbucks and use it as a planter in the driveway.
So, much winning.
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