by Dave Kranzler, Investment Research Dynamics:
Elon Musk should have considered a career as a children’s fairytale author. He would have made multiples of his current net worth selling his amazing fantasies and optioning the movie and tv series rights. He’s spent the better part of the last few years spinning fantasies as a means of addressing the growing army of analysts and truthseekers who report the facts about Tesla. He’ll say anything in an attempt to drive the stock price higher. The “funding secured” $420 buyout fraud is just the tip of the iceberg, if not wholly emblematic of Musk’s desperation to succeed.
At the shareholder’s meeting on Tuesday Musk referenced an alleged shortage of batteries that was constraining the ability to make deliveries and to bolster his claim that demand is strong. Of course, the facts say otherwise about demand (see this, for instance: Q1, April, May EU deliveries) . The battery claim will serve the purpose of Musk’s excuse for falling short of his assertion last week that Tesla “might” set a record in deliveries.
As his remedy to the battery shortage lie, Musk said “We might get into the mining business, I don’t know, maybe a little bit at least.” In some ways, that statement is just as shocking as the “funding secured” tweet. Mining companies spend years and millions looking for mineable deposits of cobalt and lithium. Then if a company is lucky enough to find a deposit, there’s several more difficulties to overcome in order to get a mine operating. Musk’s assertion minimized the cost and effort required to “get into the mining business.” He made it sound like anyone can make it happen. It’s the definition of hubris.
The “mining business” pronouncement typifies the degree to which Musk will say anything to fortify his lies – his fraudulent narrative – surrounding Tesla’s inability to execute a business model successfully. The fact that journalists, the financial media and Wall Street analysts refuse to hold Musk accountable for his chicanery enable its perpetuation. The victims are the people who die in car accidents connected to the unregulated mechanical failures with Musk’s products and the investors who are blind to his deceit.