Back in January Ferrari announced that they were going to build an electric supercar before Tesla ships their new Roadster in 2020. Even though it is probably 2 yrs out for both cars, it seems Ferrari's wager is a sound one. Not because Tesla will surely miss its target like it always does but because it may not exist in 2020.
How much longer is Tesla going to be solvent? Should we all be shorting the crap out of this stock? This much is for sure.
1. They will miss their restated production target again on March 31.
2. Quality issues seem to be taking a toll. It was reported that a factory shutdown last month was required to rework 40% of the parts in the factory.
3. Currently about 23% of the company's stock is being used to short them
4. Their Z score is 1.26 indicating financial distress.
5. They will likely run out of money (again) very soon. How will they raise with such a huge upheaval in their senior finance team? (see below)
6. A rash of high profile departures in the last month or so are surely stinging:
Global President Sales and Service, Chief Accounting Officer, Treasurer/VP Finance/CFO.
They have had 2 CFOs quit in a span of a year.
I don't know about you but this doesn't sound very encouraging yet the stock is still hanging in there. 400,000 or so deposits on unbuilt Model 3's are probably up in smoke due to the company's enormous $1B per quarter cash burn.
Are you guys shorting? If so, when? Do you think they will find more money and keep going?
Pic @knutemotorsport (of a Verde Kers Lucido F12 TDF the most awesome green vehicle in the world)
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