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8/22/2018 Tesla's Market Manipulation Lawsuits Could Kill Its Privatization Plans Given What Happened To Porsche - Tesla,
Tesla, Inc. (NA…
Tesla's Market Manipulation Lawsuits Could Kill Its Privatization Plans

Given What Happened To Porsche
Aug. 21, 2018 7:04 PM ET140 comments | 28 Likes
by: Motorhead
Summary
Porsche is currently being sued for $6.2bn by 40 plaintiffs for alleged market
manipulation of VW's stock in October 2008. The lawsuits have dragged on for
nearly a decade.
The lawsuits against Tesla due to Musk's tweet on going private at $420, "funding
secured", could be a much easier case for plaintiffs to win since funding wasn't
secured.
If claims against Tesla reach the levels that Porsche now faces, it would amount to
1.6x Tesla's shareholders' equity and could likely bankrupt the company.
Any potential investor in a Tesla privatization deal would be wise to take a look at
what happened to Porsche and how badly the stock has performed since the
lawsuits were launched.
Editor's note: Seeking Alpha is proud to welcome Motorhead as a new contributor. It's
easy to become a Seeking Alpha contributor and earn money for your best investment
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Background on Porsche's Market Manipulation Lawsuits

In October 2008, just after Lehman Brothers went bankrupt, Porsche's management
revealed that they had raised their stake in Volkswagen (VW) from 35% to 42.6%, while
owning VW options worth another 31.5%. Owning 75% of a company in Germany usually
leads to a take over. This essentially caused a short squeeze of epic proportion, as VW's
share price surged by 336% over the next two trading days and VW briefly became the
most highly valued company in the world.
Porsche had repeatedly denied that it had any intentions to take over VW, so when the
revelation was made that they owned the equivalent of nearly 75% of VW's stock, hedge
funds that were short VW--a safe bet at the time, given sagging global auto sales amid the
Great Financial Crisis--were forced to cover their short positions as sharp spike in VW's
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8/22/2018 Tesla's Market Manipulation Lawsuits Could Kill Its Privatization Plans Given What Happened To Porsche - Tesla, Inc. (NA…
stock triggered their stop-loss mandates. At the time, the short interest in VW was around
13% of its shares outstanding and the estimated losses for short-sellers was around
$37bn. Tesla's short interest at the time of Musk's "funding secured" tweet on August 7th
was 21%, but it is yet unclear how much total damages are given the lack of data on
options used to short Tesla.
Porsche's management specifically stated that they made this announcement for short-
sellers of VW in order to give them "the opportunity to close their positions unhurriedly and
without bigger risk." Another Porsche representative crowed in public that “A couple of
gamblers on the market got their odds wrong.” Porsche clearly had it out for the short-
sellers of VW's stock, very much how Elon Musk does, as can be seen from his repeated
casting of aspersions towards Tesla short-sellers on Twitter.
The crux of the plaintiffs' claims against Porsche's alleged market manipulation of VW's
stock was that Porsche's management had issued five statements denying any intentions
to take VW over while secretly accumulating VW shares and options.
The Case Against Musk for Stock Manipulation is Easier than

Porsche's
While it has taken nearly a decade for the hedge funds suing Porsche for $6.2bn to prove
that Porsche was guilty of market manipulation, the case against Musk appears to be
much more clear-cut. He has repeatedly trolled short sellers of Tesla's stock on Twitter
and made a (possibly) incriminating tweet just 7 weeks before his "funding secured" tweet.
Tesla's 2019 Senior Note Could add Ammunition to the Stock

Manipulation Lawsuits
Tesla has a convertible bond ("2019 Senior Note") due in March 2019, which is just over 7
months away. The total value that Tesla must pay back to bond holders who don't swap
their Senior Notes for Tesla's stock is $920m, or 71% of Tesla's June-end cash holdings of
$1.3bn (this number excludes the $942m in customer deposits counted in Tesla's cash &
equivalents).
The strike price of this 2019 convertible bond is $360, so it is extremely important for Musk
to get Tesla's share price as high above the $360 strike price as possible. While Musk has
repeatedly predicted that Tesla would be free cash flow positive and profitable at the
GAAP net profit level, he has admitted they won't be "rolling" in cash if this is achieved
during the 2H of 2018.
The "funding secured" tweet on August 7th did briefly get Tesla's share price above the
$360 strike price of the 2019 Senior Note, but it failed to remain at those elevated levels
after it became clear that funding had actually not been secured. Was Musk's going-
private at $420 per share tweet, not only an attempt to squeeze shorts, but also an effort
to get holders of the 2019 Senior Note to swap into Tesla's stock in order to avoid repaying
them $920m in March?
SEC Ruling Should be Key in How Much Tesla Faces in Legal

Liabilities
The SEC has now launched a formal investigation of Tesla focusing on two key factors:
1) Was Musk's August 7th tweet about Tesla going private; "funding secured" meant to
squeeze the shorts (market manipulation)?
2) What were the communications between Musk and Tesla's board regarding the going-
private deal?
Columbia University's John Coffee Jr, a law professor and corporate-governance expert
has commented that if the motive for Musk's tweet "was frustration with short sellers, then
that could be a case of market manipulation."
If the SEC's investigation forces Tesla or Musk to admit to market manipulation or any
other sort of wrong-doing via his "funding secured" tweet, the private lawsuits could be
armed with further ammunition to raise up the ante for punitive claims. It should be noted
that the current lawsuits against Tesla include not only short-sellers who got squeezed, but
shareholders who sold before the "funding secured" tweet was made on August 7th and
led to an 11% rise in the stock.
How Much Could the Legal Liabilities Amount to for Tesla?

When the SEC released incriminating rulings on Enron and Worldcom, it helped the
plaintiffs' cases against them to win $7.2bn and $6.1bn, respectively, in damage awards.
Just how much Tesla could face in legal liabilities is hard to calculate, but Fox News has
already reported that the Tesla's legal team is bracing for billions of dollars in liabilities
from private lawsuits.
As of August 7th, the outstanding short interest in Tesla was 35m shares, or roughly 21%
of its shares outstanding. The 11% increase in Tesla's shares due to Musk's tweet that
day therefore amounted to a $1.3bn loss for those shorts in total (a $37.58 rise in Tesla's
stock price x 35m shares short).
However, this does not include the following parties that incurred potential losses:
(1) Those who were short Tesla via options (some varieties of Tesla puts dropped by
nearly 50% that day and anyone who shorted the Tesla 9/21/18 call option, for example,
saw a negative impact of -198%). The losses here could be higher than those incurred by
short-sellers of Tesla's underlying stock.
(2) Those who can sue for either having lost out on the 11% spike in Tesla's stock due to
having sold before Musk's tweet.
(3) And those who bought Tesla's stock on the tweet and have seen Tesla's share price
decline by 19%.
Tesla's Share Price Could be a "Barking Dog" for a While

Since Porsche revealed its surprise 74% holdings of VW's stock on October 26, 2008,
causing a short-squeeze in VW's stock and the ensuing lawsuits that mounted, Porsche's
stock price has only risen by 35% in US-dollar terms up to now. Germany's DAX index has
increased by 158% (in US-dollar terms) and the S&P 500 index has surged by 236% over
the same time. The legal liabilities are to blame for Porsche's stock under-performing so
badly and Tesla's shares could face the same fate henceforth.
Porsche currently trades at a price/book ratio (PBR) of 0.49x and its market value is at a
23% discount to the current value of its VW stock holdings. But it does have net cash of
$1.1bn on its balance sheet and a total of $37.5bn in shareholders' equity. So if Porsche is
ultimately found guilty of manipulating VW's share price back in 2008, the $6.2bn in
damages owed to plaintiffs would only dent Porsche's shareholders' equity by 17%. By
contrast, Tesla trades at a PBR of 13.3x and has net debt of $10.3bn (excluding customer
deposits of $942m from cash), which yields a net debt/equity ratio of 2.6x. If Tesla were
forced to pay damages of $6.2bn, it would possibly wipe out the company, as Tesla only
has $3.9bn in shareholders' equity.
Tesla's Plans to Secure Funding to go Private Could also be

Negatively Impacted by Lawsuits
Porsche's legal liabilities caused huge disruptions in business expansion plans. It was
forced to abandon its buyout of VW in 2009 due to the prospect of huge legal claims for
alleged stock manipulation. In the end, the founding families of Porsche and VW bailed
Porsche out with a $9bn cash infusion in exchange for absorbing Porsche's automotive
division into the VW Group.
And it should be noted that it has taken nearly a decade to prove that Porsche was indeed
guilty of manipulating VW's share price. In fact, the two directors in charge of Porsche at
the time, were acquitted by a German court for stock manipulation in 2016, with the
presiding judge saying that it was impossible to prove how much Porsche's news release
in October 2008 was responsible for VW's share price nearly quintupling (keep in mind,
the German State of Lower Saxony owns 20% of VW and may have been more
benevolently inclined to rule in favor of Porsche, which was originally spawned by VW).
The case against Elon Musk possibly having attempted to manipulate Tesla's share price
is much more cut and dry, as explained above (the threatening tweet to short sellers on
June 17th, the "funding secured" tweet on August 7th and the need to get Tesla's share
price above the $360 strike price of its 2019 Senior Note).
Weak Start for Q3 May also be a Motive for Musk's "Funding

Secured" Tweet
By August 7th, when Musk made his infamous going private at $420, "Funding secured."
tweet, he must have been aware that Q3 was off to a slow start. While Tesla usually ramps
sales up in the last month of each quarter and sees a snap-back in sales volume in the
start of a new quarter, Q3 seems to be off to a particularly bad start in July.
Table-1 below shows data from North America and Europe, which accounted for roughly
87% of Tesla's Q2 revenues. As has been noted by other Seeking Alpha contributors, the
Model 3 sales in North America appear weak at only 14,600 units, given the fact that
11,166 units in transit at Q2-end. This means there were only a net new shipments of
3,434 Model 3 units in July.
Table-1: Tesla's July 2018 Vehicle Sales by Region

Source: Marklines, Inside EVs
Furthermore, sales in Europe appear to be falling off a cliff, with the high-margin Models S
and X being down -21% and -38%, respectively. Norway, which is Tesla's third largest
region of sales, with a 6% weight in revenues, saw vehicle sales drop by -40% in July (this
may have something to do with the problems Tesla is having building enough service
centers and Tesla getting a bad reputation for long waits for repairs).
While the last month of each quarter on average yields 52% of deliveries in a typical
quarter, things may turn up as we get into September. However, the high-margin Model S
& X have seen sales volume falling by 11% and 1%, respectively, during 1H 2018, and
this is no surprise, given that they're aging models and require full model changes (a very
costly feat for Tesla).
Data from China, Tesla's second largest region of sales at 13% of revenues, is hard to
come by. However, given that the Chinese government has hiked tariffs from 25% to 40%
for cars imported from the US, Model S and X sales there must be falling off a cliff as well,
especially when considering the local competition.
Given that the Model S & X combined are said to generate gross margins "north of 25%",
according to Elon Musk, the hit to profits in Q3 and Q4 if this sales decline continues could
be steep. And if this can't be covered by (1) higher sales of the Model 3 at Musk's targeted
15% gross margin, Q3 could see further losses and negative free cash flow. That could
possibly snuff out any possibilities of Tesla securing funds to go private.
Disclosure: I am/we are short TSLA, VIA PUTS.
I wrote this article myself, and it expresses my own opinions. I am not receiving
compensation for it (other than from Seeking Alpha). I have no business relationship with
any company whose stock is mentioned in this article.
Editor's Note: This article discusses one or more securities that do not trade on a major
U.S. exchange. Please be aware of the risks associated with these stocks.
Comments (140)
DisruptiveDave
Exactly, a point I have been making. Elon's ill fated Tweet "funding secured" has really thrown a monkey wrench into
both a Privatization Deal and into sustainable profitability.
No position.
21 Aug 2018, 06:36 PM
rennatus
I doubt Musk had any serious inttention of taking Tesla private. The game now is to make it appear so to
protect Tesla/Musk from fraud/manipulation claims.
21 Aug 2018, 07:13 PM
cabaretvoltaire
Eloon's bizarre funding secured tweet reported to be under acid (which may explain it after all) just invited
slew of lawsuits from longs, shorts, ex-employees, whistleblowers, suppliers, contractors, the variety of class
action for whatever the reason not to mention SEC subpoenas.
But maybe it was all planned as DIVERSION from the pathetic balance sheet and declining sales especially
in 2019 with offerings from Jaguar/Porsche/Audi to name a few?
21 Aug 2018, 07:28 PM
tjhmax
He has intentions. He has been talking about this on and off apparently for several years.
I hope it happens. As a Tesla investor and driver of their cars I am tired of the incessant sniping from the
cheap seats.
Tesla is one of the very few car companies that actually has a long term plan. GM and Ford just want to sell
you their next truck or SUV. Their trucks now come with ApplePlay..how cool is that!
21 Aug 2018, 08:03 PM
The Reasonable Investor, Contributor

Can You Support Elon Musk And Be Short Tesla Stock? www.invtots.com/...
21 Aug 2018, 08:04 PM
jackedtothetits
Actually autonomous driving is going to be the future in transportation. GM and Ford are leaders in this
technology along with Waymo. Tesla is not even close.
21 Aug 2018, 08:34 PM
daniel_k
What kind of AI HW and SW they are using?
21 Aug 2018, 08:40 PM
jackedtothetits
I can't find the exact software they use, but every article on autonomous driving technology says Waymo and
GM are the leaders.
www.zdnet.com/...
www.businessinsider.com/...
smart-mobility-hub.com/...
21 Aug 2018, 08:46 PM
ezeana1
But most have been predicting doom for Tesla. How worse can it be a company when doom was all we read
about?
21 Aug 2018, 09:02 PM
ckarabin
tjhmax if Tesla was tired of the bears sniping it should have just started hitting some of its publicly announced
forecasts for a change (or rather, for the first time) and then became profitable. That would have done it. Tesla
itself is at fault for there being so many bears and so many shorts
21 Aug 2018, 09:04 PM

Commonnonsense
tjhmax: "Tesla is one of the very few car companies that actually has a long term plan."
The Model 3 disaster was planned?

The Tweet was planned?
The lawsuits were planned?
Elon works in mysterious ways.
21 Aug 2018, 10:30 PM
John R. Clark
~max---
Is Tesla's long-term plan anywhere in writing, or does it rattle around inside Musk's head, subject to his every
tweet?
A long-term plan would include upgrades to or replacements of Models S and X, plus the next 4 or 5 new
vehicles with dates of introduction, locations to be built along with much else. Yeah, Musk has been talking
about stuff off and on, excepting the off, for years. But a plan dependent on one person's every impulse and
utterance is no plan at all.
21 Aug 2018, 11:48 PM
Stephen Tips
The SEC does not want to hurt TSLA - too many would be seriously hurt by collateral damage - any
significant punishment could cause major disruption to not only TSLA, the markets, upstream and down, but
everything/anything . . . all things Tesla. I just don't see that happening.
More likely the SEC will work with Tesla to help express contrition, thereby calming the waters. No jail time
but probation.
(MHO)
22 Aug 2018, 12:06 AM
browndlee
No jail time but a modest fine and admission of Musk’s error. That leads to the private lawsuits where the real
costs are.
22 Aug 2018, 01:06 AM
DT in Calif
Elons defense should be that Twitter is not an official communication medium for the company, he was acting
as a layperson, not as CEO, you can never trust anything written on the internet, and investors should always
do their due diligence before making an investment decision. Thus if an investor lost (or made) money on the
stock in the days that followed, the responsibility rests squarely on the investor's shoulders. It's not Elon's
fault that anyone would believe anything he says. Just look at his track record.
22 Aug 2018, 01:39 AM
nick name
One difference is that vw;s shorters were professionals, and they should have been given more info. Teslas
shorters are beginners (why otherwise short a stock with ”religious” investors?). All beginner shorters should
be aware that musks words on twitter cant be taken seriously.
22 Aug 2018, 02:45 AM
Aussie Machead
Maybe Elon's tweet actually meant that his own share money was available as "funding secured" as opposed
to the corollary of someone coming along to Tesla and buying up a lot of shares with the aim of taking the
company private when Elon's substantial holding although much less than 51% could still be used to assure
the market that "Funding is NOT secured!"
Lets face it - it was a minor tweet where the meaning from two words could never really be established - and
it has no formal signature - it is just an idea which if Elon is thinking that way then it is better he tells everyone
at once rather than a select group of friends who can play the market and make profits on early secret
information. We live in an era of crazy tweets - many lies, many discriminatory and many from a POTUS who
can't keep to the same story from one day to the next.
22 Aug 2018, 03:54 AM
memberbs
"Elons defense should be that Twitter is not an official communication"
That's easily destroyed. Any tweet he's ever made including an announcement or in the capacity of CEO will
definitively throw that rather weak argument to the curb.
A few hours of billable pay for a paralegal / researcher.
22 Aug 2018, 06:16 AM
DT in Calif
Sorry, the comment above was meant in sarcasm. It is the defense of "it's not my fault, it's yours. I lie all the
time, everyone knows that, you should have never believed me or my tweet in the first place."
22 Aug 2018, 06:25 AM
Analitik I am Montana Skeptic and so is my wife

@Aussie Machead "it was a minor tweet...it has no formal signature...just an idea.."
Garbage. Tesla has indicated in the past that Elron's tweets are a source of information about the company's
intentions and milestones. As such, his Twitter account is an official channel for Tesla communications.
Elron is facing serious charges for stock manipulation and/or fraud and will likely be found liable.
22 Aug 2018, 06:51 AM
Hermann Balck i am Montana Skeptic

Tesla is a leaderless right now, Musk going to jail and no one on the BoD has the courage to do the right thing
only increase their personal and corporate liability the longer they drag the lie out. No one is in charge! Musk
has only been at the plant 3 days in the past 2 weeks, and 1 for a PR video! LOL
22 Aug 2018, 07:10 AM

S. Tips, you're suggesting the "Musk" precedent should set back SEC securities laws 100 years! Back to the
anything goes buyer beware, the stock promoter could be a liar, but that is ok.
22 Aug 2018, 07:24 AM
CommodityInvestor
Musk has relentlessly pumped the stock with deceptive and misleading disclosure for years. This time he
pushed too far.
22 Aug 2018, 07:42 AM
Buddha1010
If PwC insists the company make a provision (reserve) for litigation exposure that is reasonable, there will be no
earnings in Q3. A going concern qualifier may also be in order.
Ouch!
21 Aug 2018, 06:43 PM
Chimichanga Grande
I don't see how Tesla can avoid booking at least a $1B reserve in current liabilites. The question is which
quarter does it get booked in?
21 Aug 2018, 07:27 PM
cabaretvoltaire
Would PwC have the balls to state going concern qualifier even with the low cash level of $1.69 bil as of mid
Aug trumped by $3+ bil accts payables and $1.15 bil debts are due over 3 month period (Nov-Feb)?
21 Aug 2018, 07:31 PM
49334681
Thank you Buddha. I have commented on the dangers facing PwC several times and a reasonable reserve
for litigation exposure is likely required given the number of filings and the implications of the tweet.
Retired auto analyst / CPA
21 Aug 2018, 08:06 PM
dunnpfiff
The Big Five that became the Big Four may become the Big Three.
21 Aug 2018, 08:37 PM
ckarabin
It must be booked at the point that it is probable and estimable. Which says Q3
21 Aug 2018, 09:05 PM
ezeana1
Do one really need to look at the auditors’ reports in all instances in their DD before deciding on companies
like Tesla? There are enough signs and warnings. How much is really enough reserve for contingent
liabilities?
I bought Apple shares without looking at their financial statements. I just saw everybody everywhere with
iPhones. I am yet to see Tesla vehicles in my neighborhood.
21 Aug 2018, 09:16 PM
RasMoyag
@cabaretvoltaire Based on my experience in, around and out of PWC, I will confirm that PWC is prepared to
issue a going concern qulification after the BK has been filed. And not before.
21 Aug 2018, 10:47 PM
dc1reg
But quarterlies aren’t audited
22 Aug 2018, 06:18 AM

Also a provision for SC $2.6 Billion write off.
22 Aug 2018, 07:26 AM
Bill Cunningham, Contributor

"Also a provision for SC $2.6 Billion write off."
@Hermann Balck i am Montana Skeptic
What SC assets to you expect them to write off?
22 Aug 2018, 07:40 AM
Rob Marstrand, Marketplace Contributor

Oh dear, the SEC and courts with all their boring, boneheaded rules and regulations (as Musk probably sees it).
If investors are ever offered $420 they should grab it while they can.
21 Aug 2018, 06:46 PM
DisruptiveDave
I think that 420 is a "pipe dream" at this point. Pass me the Hookah Elon.
21 Aug 2018, 06:49 PM
DisruptiveDave
I do agree with you Rob. Anything close to $420 and cash out quickly. Risks have gotten much higher in this
very risky stock.
21 Aug 2018, 06:52 PM
.50 CAL MA DUCE

@DisruptiveDave
Don't bogart that joint my friend, pass it over to me......
21 Aug 2018, 07:19 PM
Mikey4
If he had passed on using the pills and booze and stuck to just using the hookah, then he might have been
fine, excepting the whole crooked character thing...
22 Aug 2018, 03:44 AM
Long-Short Manager, Contributor

Whether or not the SEC charges Musk with criminal behavior (and if so, whether or not they succeed), the civil case
that private parties have looks pretty darn strong. With such a small cash cushion and even under the best of
scenarios marginally positive cash flow, it is clear that any 9 figure award can kill the firm. Right now this is all in the
distant future for many investors. But so are projections of rapidly growing broad EV demand and much of the positive
views keeping this story stock humming. At some point, both positives and negatives have to be discounted at the
same rate. This can happen rapidly, as in the recent fall from 380 to sub 300 or slowly over time as news on the legal
front ekes out.
21 Aug 2018, 06:50 PM
Kevin Sloan, Contributor

Judges/juries do not just give otu 9 figure awards like it's candy..
21 Aug 2018, 07:32 PM
.50 CAL MA DUCE

@Kevin Sloan
www.chron.com/...
Funny, you should mention that.
21 Aug 2018, 07:38 PM
.50 CAL MA DUCE

@Kevin Sloan
www.chron.com/...
21 Aug 2018, 08:29 PM

My analogy to not handing out verdicts like that like "candy" refers to the fact that they are not at all
common...you just referred to a singular example of the largest settlement in the history of the world....
21 Aug 2018, 08:58 PM
Commonnonsense
Kevin: "you just referred to a singular example of the largest settlement in the history of the world"
It won't take a gigantic settlement to bury Tesla. Could they even pay $1 billion? Can they even pay all their
lawyers?
The sheer number of suits would worry a solvent company.
21 Aug 2018, 10:38 PM
stevedd
@Kevin Sloan
Shorts lost about $1B as a result of the Musk tweet. This ignores option traders and longs who bought at
$380 for a quick $40 profit on a $420 buyout followed by a rapid decrease in price.
Under Calif law, triple damages plus attorney fees are awarded for fraud ie. "Funding was not secured". Total
damages $1B * 3 = $3B + 1/3 for attorney fees = $4b total.
22 Aug 2018, 12:09 AM

Class action lawsuit take absolutely forever. Legal costs for Tesla will not begin to pile up in earnest, will take
months to even form the class, more months/years for the class to be certified. More months/years for
discovery. By that time Tesla will either be 0, or worth a ton of money that it won't even matter, or already
private.
22 Aug 2018, 01:38 AM
kenberthiaume
when it's a clear case of fraud, they might.
22 Aug 2018, 07:29 AM
roadmonk
Musk said "funding secured" which he knew to be false and which he knew or should reasonably have known would
move the market, but the SEC is now reportedly worried that its investigation could damage shareholder value?
That's like the police worrying that catching an arsonist might depress neighborhood home values.
21 Aug 2018, 06:53 PM

Oh I didn't know the SEC concluded that funding was not secured and that SEC also concluded that Musk
knew it was false and that he knew or reasonable should have known it would move the market. Can you link
me?
22 Aug 2018, 01:39 AM
kenberthiaume
if funding was secured, then what is musk doing scrambling for buyers? it was a done deal, subject ONLY to a
shareholder vote.
22 Aug 2018, 07:31 AM
Analitik I am Montana Skeptic and so is my wife

@Kevin Sloane, Elron has admitted, in his interview with The NYT, that there was no settled contract for the
buyout of Tesla when he made the tweet about "funding secured" and that he only assumed that it was
formality from discussions with a member of the Saudi PIF.
Plus he admitted he made the tweet to get back at shorts for the frustration he felt with them.
All the SEC needs for conviction is to compare the timing of the tweets against the stock price movements
and civil applicants only need to add the value of their plaintiffs' trades for their cases to be carried. All Elron
and Tesla can really do is try and string things out.
A contributor should show more awareness of reality than you display.
22 Aug 2018, 07:36 AM
N32117
I cannot think that any private equity offer would be attractive to an investment syndicate, given the existing financials,
much less the exposure to litigation. Having been on the investment side of the PE negotiating table more than once,
even with best-case growth and profitability scenarios, I can find no way to close such a deal at a risk-adjusted ROI
that makes any remote sense for PE. Can anyone here moot a PE investment scenario that makes sense?
21 Aug 2018, 06:54 PM
Krypto
@N32117 I believe I can justify taking Tesla private. If Vladimir Putin provides 50 billion dollars and George
Soros backs Vlad and his new found friend Elon with another 50 billion, then Apple can add in another 50
billion and they can buy Tesla shares at the bargain basement price of about $1000 per share.
With secured sales of one million Model 3's per year for the next 40 years at an ASP of $60,000 (since all
Apple stockholders and employees will buy one, along with every Russian since Vlad will decree it) the net
profit per year will be 12 billion on just the Model 3, and another 10 billion on the Tesla Solar tiles and energy
division, yielding 22 billion in profit, NOL's will cover the taxes, and with a revolving loan of only 150 billion at
6%, the mere 9 billion per year in interest will be well covered and Vlad, Soros, and Apple will all be richer,
and the world will be a better, cleaner, and more peaceful place.
This result can be secured easily.
21 Aug 2018, 09:17 PM
RasMoyag
And the best part of that plan is that it is better than what Elon could ever imagine, even in his wildest dope
induced sleeps on the production floor. Methinks we have found a candidate for the CFO job.
21 Aug 2018, 10:51 PM
DT in Calif
An electric Lada, nice. Priced at under 25k, and battery range not a problem because the wheels will probably
fall off first.
22 Aug 2018, 06:29 AM
David G.
More noise. Short at your own peril. Shareholder lawsuits take forever. SEC investigations do as well. Privatization?
Not so long.
21 Aug 2018, 07:00 PM
Chimichanga Grande
The problem is that any investor(s) willing to take Tesla private will price in estimated lawsuit and SEC
settlements, and the deal economics will be adjusted downward accordingly. I would be surpised if further
investments in Tesla pencil out unless there are massive changes in ownership, shareholder dilution,
restructuring, etc.
(no position in Tesla)
21 Aug 2018, 07:34 PM
dannylgriffin
I don't know about that. They can take their time in an investigation into small insider trading. The incident is
in the past, and I would think any real market damages are negligible if any. Time is not of the essence. In this
case it is. This is an ongoing issue and if the SEC takes their time, seems to me they would be exacerbating
the problem.
21 Aug 2018, 07:38 PM
.50 CAL MA DUCE

@David G.
Ask Martin Shkreli how long it takes for the SEC to move on someone that's committed securities fraud, you'll
have to go at visiting hours. Depending on how complex a securities fraud is, yes they can take years to
resolve, for Shkreli, it was about 18 months, so I guess that's "forever" for some people. Porsche is a good
example of how long it can take. But Elon's will be much easier since his communications were public, and
now documented as false, which, I would argue, he knew the "financing secure" tweet was false. Elon, knew,
or reasonably should have known that his "financing secured" tweet was false, misleading.
Only a true Tsla fan boi would post a statement so void of facts as yours is. If anything, as these lawsuits
mount, as the SEC pressure mounts, like Porsche, it will cause the stock value to collapse. No one but a blind
Tsla fan boi, a follower of Musk would keep their investment in a company facing multiple lawsuits, on many
fronts.
But Tsla doesn't have the kind of money Musk will need to combat these lawsuits there are competitors either
producing EVs or that have EVs on the drawing board. Including the makers of the car Lucid, which is way
beyond a Tsla, they are the same people that helped Elon build Tsla. So they know what NOT to do.
You're living proof that common sense isn't so common, you labor under the delusion that somehow the SEC,
the lawsuits that have been filed will take so long that Tsla would be profitable enough, to have the cash flow
to pay what could be multi-billions of dollars in payouts to parties damaged, by Musk's reckless, and very
stupid tweets, and still avoid bankruptcy.
Banking on the SEC and lawsuits taking years to resolve makes as much sense as tweeting "financing
secured". Or tweeting that someone is a pedo, (then apologizing by saying, oh, I was angry), when you know
those statements to be untrue. No investor(s) with any sense would invest in a company who's CEO is facing
the scrutiny of the SEC, that potentially has multiple lawsuits filed by investors. Why do you think that
institutional investors are bailing.....
By the way, here's the company that the Saudis, really did invest in, remember them, the Saudi's according to
Musk's tweet, were going to invest, to help with the buyout that was never going to happen. This is the car, I'll
buy, not a Tsla, for $60,000 this car is far and away better than a lousy Tesla.
https://lucidmotors.com/
21 Aug 2018, 08:01 PM
highwater888
@David G.
The number of PE investors who are willing to fund a going private transaction for a profitless company is
remarkably small; the number of PE investors willing to fund a going private transaction for a profitless
company also subject to major --big $$$-- legal and regulatory claims is probably zero. Your comment seems
to suggest that those claims would be evaded in your 'fantasy' privatization but that is simply not the case.
21 Aug 2018, 10:05 PM
Buddha1010
"Shareholder lawsuits take forever. SEC investigations do as well."
But operating losses don't take forever; in fact, they repeat quarter after quarter with TSLA.
Call your British bookmaker and ask what odds he'll give you hat TSLA goes BK before 2019. You may me be
unhappily surprised.
21 Aug 2018, 10:15 PM
Motorhead, Contributor
Author’s reply » The SEC had already been investigating Tesla for potential misleading goals given by Musk
regarding the long-delayed ramp-up of the Model 3. The "Funding secured" tweet just gave them an excuse
to "enforce" an investigation, which gives them the right to subpoena anything they need.
This investigation could be much faster than usual given the fact that the CEO of a company tweeted he was
taking it private and that funding was secured. If it was secured, there would be contracts, investment banking
valuation models justifying $420, etc. So my guess is that the SEC asks for this kind of stuff and Musk can't
show them anything. Case closed!
22 Aug 2018, 03:06 AM
wdhamiltonz
There are three cut and dry communications which were false about funding secured, so three cut and dry
counts of securities fraud. What might take a while to investigate the other counts of securities fraud. They
have been investigating those for a while, I don't think this will be years from now, but likely a few months at
least. They will want to try all the cases at once.
22 Aug 2018, 07:49 AM
Indica Trading and Investments

People seem to forget that the $TSLA stock price rise was due to the Saudi fund investment rumours sparked by the
Financial Times leak earlier in the morning... Elon's tweet was just an attempt to provide transparency and quell the
rampant speculation which was going on at that time...
Think of if Elon had said nothing... there's no way he would be able to take Tesla private the price would be too high
probably about $460 right now and much too expensive... Elon is actively trying to keep the price lower these days so
that he can have enough capital available to go private...
21 Aug 2018, 07:16 PM
Scott Beyer
Kinda think that bubble would've been deflated quickly when the story broke of Saudi investment in Lucid.
And oh. That name. I think the Saudi's have a much better sense of humor than given credit for sometimes.
Lucid > Ambien + wine + twitter + sleep deprivation
21 Aug 2018, 07:57 PM
speechu
Lots of people claiming no position but commenting very promptly. Absolutely nothing suspicious about it.
21 Aug 2018, 07:17 PM
.50 CAL MA DUCE

@speechu
Believe it or not, but people can have an opinion without owning Tsla stock, duhhh. Like Trump it's fun to
watch true ass clowns at work.
21 Aug 2018, 08:23 PM
SingletonEngineer
Thanks, Motorhead, for an interesting and fact-filled discussion of the VW/Porsche takeover bid a decade ago.
You have illustrated well some of the off-market issues that may ultimately determine Tesla's future - and that of some
exposed investors.
21 Aug 2018, 07:20 PM
ari5000
If they ran the SEC like they did ICE I would be inclined to agree.
21 Aug 2018, 07:26 PM
e_dehbashi
Suppose lawsuit damage if any comes out to be 1.5 B as you pointed. If Tesla goes private then the stock value would
be in the 500 range so by then the lawsuit amount is chunk of change!
21 Aug 2018, 07:26 PM
johnvolk2010
I get it - the more liabilities you have, the higher the stock price. No wonder Elon thinks he's a genius.
21 Aug 2018, 11:48 PM
bronsonbrooks
are they going to sue Tesla Corp. or Elon Musk himself? It would seem that suing the Tesla Corp would be a waste of
time considering they have a very low cash balance.
21 Aug 2018, 07:27 PM
kenberthiaume
Then they'd get assets in bankruptcy. The company is worth 50 billion plenty of value for lawsuits.
22 Aug 2018, 07:33 AM

Oh short Tesla what a surprise. Also all wrong. I will write an article on why lawsuits have zero effect on companies.
21 Aug 2018, 07:30 PM
DisruptiveDave
Kevin: please write your article on "why lawsuits have zero effect on companies." That should be a lovely
science fiction piece. You can collaborate with Trent Eady and Ray Bradbury.
JNJ will welcome your article as well. It's too late for Enron.
21 Aug 2018, 07:51 PM
JohnH_
And here I have been running my company so I don't get sued like a clown.
21 Aug 2018, 08:28 PM
TommyIrish
‘I will write an article on why lawsuits have zero effect on companies.“
Try telling that to the shareholders PhilIp Morris, BP or the Names at Lloyd’s Insurances that were
bankrupted, just to name a few.
21 Aug 2018, 08:30 PM
.50 CAL MA DUCE

@Kevin Sloan
Well, I'd be sort of inclined to believe you, but then again, lawyers...
what do you have when you have 500 lawyers at the bottom of the ocean..
A good start.
21 Aug 2018, 08:32 PM
jackedtothetits
Oh, this made me laugh so hard
22 Aug 2018, 06:40 AM
jackedtothetits
This guy is a clown. July 17th is exactly 3 weeks before August 7th when he announced "funding secure" at $420. If
this guy doesn't end up in prison, I'm going back to investing in Penguin and Panda bear futures.
21 Aug 2018, 07:30 PM
Mikey4
Penguins may produce. Panda bears, not so much.
22 Aug 2018, 03:57 AM
jackedtothetits
I always short panda bears Mikey. Always.
22 Aug 2018, 03:59 AM
blackqqt
even if Tesla has poor execution, not one person could deny its ingenuity. them wanting such an innovative American
company, which is an icon and does not outsource, to die, is so troubling and so unpatriotic.
21 Aug 2018, 07:31 PM
.50 CAL MA DUCE

@blackqqt
I've never seen anyone post anything about wanting to see Tsla die. Not one, but that doesn't mean that Elon,
isn't a visionary either. It just means that Tsla shouldn't have Elon as a CEO. He has put Tsla in harms way, he
could by a single tweet, run his company into bankruptcy, with a single tweet.
How about Elon trying honesty for once. He's set these stupid production numbers, then blame short sellers,
short selling stock won't destroy your company. The way to win against them is to make the company a
winner.
21 Aug 2018, 08:37 PM
blackqqt
a foreigner looking at this would be laughing this ass off. this is a ingenious company and a charismatic CEO
that every country wants. this is a company so out of its time that possessing it not only leads to substantial
technological gains but even moral high ground, not even to mention practical sustainability benefits that
should not be understated. possessing Tesla, spaceX and boring would grant you the next phase of humanity.
yet this is how Americans treat their heroes! by shorting and spreading rumors and desperately wanting it to
die! China, Saudi and others would so gladly scoop up Tesla and Elon if Americans indeed drives them out.
nobody is perfect! don't pretend to be saints, shorts! what's more don't stand in front of human progress!
21 Aug 2018, 09:06 PM
Oiltech
seems the Saudis want more to do with Lucid and the people that Musk pushed out than they want to do with
Enron Musk. But keep telling yourself it's the shorts fault the company is in financial distress.
21 Aug 2018, 10:11 PM
blackqqt
why can't Saudis invest in both? are you Saudis and know what they think? shorting the company is fine.
spreading FUD is evil. the company does have some operational issues, but we need to help it but trying to
be negative whenever there is a chance. why? this is the only company tackling sustainability in all
seriousness
21 Aug 2018, 10:31 PM
johnvolk2010
People around the world said almost the exact same thing 80 years ago until Der Fuehrer ruined it all by
tweeting "victory secured" as he saw his Panzers closing in on Moscow.
21 Aug 2018, 11:50 PM
stevedd
@blackqqt
A lot of shareholders would be happy if Musk forgot about sustainability and started focusing on profitability.
22 Aug 2018, 12:21 AM
johnvolk2010
Sustainability? LMAO. Musk's jets make him a hypocrite. Besides, "sustainability is a demonstrably false
concept. The earth is a closed system wherein the sum of matter and energy cannot be lost. It can change
from, from one to the other and back.
22 Aug 2018, 12:36 AM
blackqqt
as I suspected, the shorts of Tesla are really shorting the future of humanity. they basically do not give a damn
about our future generations. all the financial analysis on the surface only covers up the fundamental attack
on sustainability itself.
22 Aug 2018, 12:45 AM
wdhamiltonz
Blackqqt, no lies and fraud do not represent the future of humanity. If Elon Musk was concerned about the
environment, would he own five Belle Air mansion? Go jetting across the globe? Sell flame throwers?
22 Aug 2018, 07:56 AM
Monaco Trader
Wrong, our bet is against his business model, balance sheet, lies, fraud and misrepresentation, NOT his
vision !
22 Aug 2018, 07:57 AM
wdhamiltonz
Blackqqt, if all shorts were against sustainability, why focus on only Tesla?
22 Aug 2018, 07:57 AM
Some dude with an engineering degree

It appears that Musk's wealth is in his 'foundation' and thus untouchable. Mr. Musk will walk away a free and wealthy
man in any event. These lawsuits over the '420' tweet will just be left trying to get blood from a rock. Musk knew
exactly what he was doing. He cleared a path for the Elephants to exit as well as himself.
21 Aug 2018, 07:35 PM
Mikey4
Some dude
Selling paper for cash is the exit strategy. They've been 'exiting' for awhile.
22 Aug 2018, 04:13 AM
JRP3
There was no need to get the stock above $360.
Funding secured does not have to mean signed documents.
Shorts have been crowing about how much money they made since the stock price dropped after the tweet.
This is a huge steaming nothing burger. TSLA will go private and the SEC will find no wrong doing.
21 Aug 2018, 07:38 PM
kenberthiaume
funding secured has to mean something other than wishful thinking or it's fraud.
21 Aug 2018, 09:32 PM
UncleBrian Research, Contributor

@Motorhead - I just wanted to congratulate you on a terrific article. You raise some excellent points, and the parallels
to the Porsche/VW situation is a very interesting take.
I will be interested to see what the SEC actually does here. I've seen conjecture anywhere from a slap on the wrist
(presumably to protect shareholders, of all reasons) to some sort of punishment that includes an admission of guilt. Of
course, that admission would be the lynchpin in any valid shareholder suit, so I'll be very interested to see how that
plays out.
Again, fantastic article, and I look forward to reading your analyses in the future!
21 Aug 2018, 07:41 PM
Author’s reply » Thanks so much for your feedback, UncleBrian Research. The SEC investigation could drag
on for a while, but the lawsuits will only mount further and once we get the WJS, FT, NYT, etc. writing about
the similarities to Porsche's legal liabilities, any potential investor will have to add billions more to the
estimated amount needed to take Tesla private. Keep in mind, all investment banks and/or private equity firms
will use enterprise value (market cap + net debt) rather than simple market value for their final calculations.
And I bet it won't add up to $420 per share.
21 Aug 2018, 11:16 PM
speechu
Looking for a few more opportunities to swing trade before it goes private at $420/share.
21 Aug 2018, 07:58 PM
speechu
Thanks to the shorts for providing multiple opportunities for easy gains in an otherwise sideways market so far in
2018.
21 Aug 2018, 07:59 PM
djunh
agreed - reviewing the charts, as a short it looks like the best way to do this stock in 2018 is to take profits
quickly. A strategy of fading the upper bollinger band, and buying in long at support would have probably done
well. All in hindsight of course.
21 Aug 2018, 08:26 PM
00Billy
No Thank you....my long friend. (106% profit on puts sold yesterday)
you help me Ill help you... and together will get rich while every other car company passes tesla in ev's.
21 Aug 2018, 09:59 PM
djunh
@00Billy
amen to that. Nicely done. My puts are for bankruptcy but should have taken a quick profit in hind sight. Now
that I know how this thing handles, I think I might trade it more. Most of my short entries have been proven
right over a few weeks but you need to cover as soon as sentiment is at its worst, and initate as soon as the
bulls are going crazy for 420 ;) (dollars that is!)
best of luck
22 Aug 2018, 08:03 AM
uptick_rule_now
low intrinsic value of Tesla company should be enough to kill any chance of fantasy privitization as doped up Elon had
tweeted during one of his drug induced moods. lawsuits should bring the board and company down as they are all
lying no matter what they are trying to fake now with a retroactive cover up
21 Aug 2018, 08:27 PM
.50 CAL MA DUCE

@Some dude with an engineering degree
And that's why he created this offshore "foundation"
21 Aug 2018, 08:38 PM
LIQUNPU
this company and that guy really annoying
21 Aug 2018, 08:46 PM
walter scott
Motorhead, thank you for the analysis. I wish you had a legal background. It would give your opinions on the legal
bases of the case a little more verisimilitude. Us amateur lawyers always seem to get it wrong.
Nevertheless, I found the numbers you presented both interesting and instructive.
21 Aug 2018, 08:52 PM
Author’s reply » Hi Walter, thanks so much for your reply. Yes, I am an automotive financial analyst, not a
lawyer, so couldn't add the legal color that was needed.
I just thought it was strange that no one in the media had highlighted how expensive the "go-private" deal
could quickly become when looking at what happened to Porsche, which was a stock manipulation case
much harder to prove (it seems) and dragged on for nearly a decade.
It would be great if someone with a legal background on SA could provide some insights on Tesla's situation.
But here's a good clip from a former SEC attorney:
www.bloomberg.com/...
22 Aug 2018, 03:31 AM
kenberthiaume
how can Porsche be at half book or whatever if it's part of vw?
21 Aug 2018, 08:59 PM
kenberthiaume
nevermind, i looked it up.
21 Aug 2018, 09:11 PM
aqeelmahesri
I don't see it. I looked at the chart and all I see is TSLA going up and down in the same trading range it's been in all
year, before the tweet and after. Except for a few hours, the market has totally ignored the tweet. Shorts are neither
raking it in nor in a tsunami of hurt. Given that shorts (and longs) experienced no losses or gains outside of those
within TSLA's normal trading range, why on earth would anyone be awarded $6B in damages?
21 Aug 2018, 09:14 PM
kenberthiaume
longs who bought at 370 experienced no losses? Shorts which covered there experiened no losses? OK.
21 Aug 2018, 09:29 PM
thesatanicmechanic
missing the forest for the trees. what is it that strongly correlates with these fluctuations in $TSLA stock price?
Elon Musk.
melt down conference call, profitable in 2h2018, flame throwers, rocket man, production hell, pedo guy,
funding secured, etc ad nauseam.
somebody who is better with charts than me could probably make it more painstakingly clear, but this is a
noise and momentum equity that vascillates at every addled proclamation of its man-child CEO.
21 Aug 2018, 10:12 PM
jdash
Ambien!
21 Aug 2018, 09:56 PM
MaxedOutMama Je suis Montana Skeptical

Motorhead - I mentally marked down S/X sales for 2018 to 96K. That's just an estimate, but I think it's good for a
revenue estimate, because it looks to me as if Tesla will be discounting heavily to get more S/X units sold.
21 Aug 2018, 10:05 PM
Author’s reply » Dear MaxedOutMama,
thanks so much for your estimate, which is pretty much bang in line with mine ($95k). I've got this coming
down by -14.5% to $81k in 2019 and total volumes falling by -22% to 66k units (Jaguar, Audi, Benz &
Porsche's new models will all have better performance and mostly priced cheaper than Tesla's aging Models
S/X).
We use an automotive data firm called Marklines that tracks sales by models for automakers globally. While
they only have data for Tesla in North America and the EU + CIS, it shows a frightening trend for the Models
S/X: Q1'18 -4.1% YoY; Q2'18 -6.8% YoY. July seems to be down by -20.4% YoY.
The only reason we don't see such a steep fall in Tesla's quarterly delivery numbers for both models is
because China had been making up for the slack in North America and EU+CIS regions. But as we all know,
China just raised the import tariff on US imports from 15% to 40% on July 7th.
22 Aug 2018, 04:03 AM
thesatanicmechanic
@Motorhead as someone with intimate knowledge of Porsche/VAG for the last 25 years I am extremely impressed
with your introductory article. Look forward to reading more and am kicking myself for not recognizing the correlation
in the short thesis.
ex- long here, now profit off Elons manichean impulses.
21 Aug 2018, 10:20 PM
Author’s reply » Dear thestanicmechanic, it is an honor to receive a reply who has such intimate knowledge
of Porsche/VAG. Great car makers with wily management, it seems. In the end it was Dieselgate that
blemished their esteemed brand, but maybe it will be Ambien for Musk?
22 Aug 2018, 04:06 AM
speechu
Model S & X are top selling in their categories. Model 3 grabbed 53% of US sales in July in midsize luxury sedan
segment.
If Tesla has a demand problem, the other car makers are screwed!
21 Aug 2018, 10:28 PM
feierbach
The SEC should also take in consideration the lying, exaggerating, and spinning of the short sellers about Tesla's
corruption and imminent demise. I don't blame Musk for hitting back. Unless their puts were due to expire in the next
few days I don't see that they were hurt that much. Suing is just another nasty way for these folks to make money.
This whole affair reminds me of Tucker. Detroit went back to sleep after destroying Tucker until the Japanese came in
with totally superior cars. They've been getting bailed out periodically ever since and now there is only two since Fiat
owns Chrysler. Oh! but Tesla is under their skin and the skin of the petroleum industry as well. Where I live there is
now a Tesla on every block and I'm sure that will double soon. ICE be damned!
I just got my model 3, and most of you motorheads don't understand how it feels to be propelled down the road in the
right hand of God. Silent power is something to behold and I have the RWD version not AWD which is even more
awesome.
If the SEC does step in with a heady hand they will kill an American miracle (again) and the emotions released will be
powerful and unrestrained.
I blame SA for allowing some of the lies and tripe that the shorts have been broadcasting using this platform. They
need to reform this platform just as Facebook is trying to reform theirs. They kicked me off in the past for saying that
one of the short sellers should go to jail. They need to understand a basic human flaw, "broadcast a lie often enough
and there will be a growing body of people that will believe it." (Josef Goebbels) and now from certain short sellers on
SA and Twitter. I would like SA to be a place to get reliable information and facts not some BS from short sellers.
21 Aug 2018, 11:11 PM
Author’s reply » Touche, feierbach! I loved the test drive I had with a Model S in Ludicrous mode. Was very
close to the driving experience one gets in a Porsche Turbo or a Ferrari.
And it would be great if Musk can succeed in making Tesla a long-lasting American brand in the auto industry,
after the likes of Tucker and DeLorian. Unfortunately, he's an "unstable genius", it seems. Carlos Ghosn, who
saved Nissan Motor from bankruptcy in 2001, is about to leave Nissan-Renault. He's a great turn-around
artist and I've not only seen him in action, but met with him. Tesla would be a screaming BUY if Ghosn
became CEO.
22 Aug 2018, 04:15 AM
feierbach
www.google.com/...
A picture of a short seller
21 Aug 2018, 11:19 PM
marriottmare
Def. stay long Tesla and watch...
21 Aug 2018, 11:42 PM
marriottmare
Def.long Tesla and watch...
21 Aug 2018, 11:43 PM
LGAero
Interesting to note total sales of S and X in Europe of 1,300 yet in another post is the detailed listing of over 1,900 S +
X in Europe for sale. Seems like a huge drop off in demand.
21 Aug 2018, 11:47 PM
combatcorpsmanVN
Shares are being pumped now to allow big Indy holders to reduce inventories w/o creating a free fall. OLD WS
TRICKERY
22 Aug 2018, 12:09 AM
David DeMaria
Finally a spot on analysis.
22 Aug 2018, 12:14 AM
MoneyMike777
Tesla is an Obama era holdover. Even before the latest fiasco's, the fundamentals of elapsing government subsidies,
un-profitability, and increased competition doomed them. The latest circus is just the cherry on top of the cake. If
you're long you'd have to be delusional and wishing for a miraculous, non-existent saviour to come to the rescue.
"Hope" is not an investment strategy.
22 Aug 2018, 01:19 AM
labiffster
Feierbach,, I'm completely in agreement with you, short sellers do troll in shameful ways spewing toxic tripe about
how terrible Tesla is, and without ever actually being in a Tesla, let alone drive one.
My Model 3 amazes me every time I get inside it, it's power, handling, and smoking sound system all comes together
in an effortless feeling, truly making you feel like you have stepped into the future with a car that is so far ahead of the
pack, despite all the fud that is present in the media, and forums like this.
Having my Model 3 for the summer allowed me to take it to some local car shows where it was buzzing with
excitement and enthusiasm from the crowds, meanwhile the Bolt and Leaf on either side of me barely received any
attention and what surprised me the least was how ten year old kids knew everything about Tesla. This is only
reafirming my belief that Tesla cars are designed for millenials and the upcoming generations who will be the future
economic drivers, believe me, they absolutely love Tesla,, GM and Ford,, not so much.
Musk doesn't need to tweet to send the stock to new highs,, it will make it there on it's own merrit,,the Model 3 is
awesome,, nuff said.
22 Aug 2018, 01:43 AM
ntsirov1
Can some knowledgable forum member explain something to me, please, so I can decide whether or not to add to my
existing short position. Being under SEC investigation, will that per se be prohibitive for Tesla to use public capital
markets to raise new equity in order to support its cash position and fund future endeavours (China plant, semi, etc.).
22 Aug 2018, 02:17 AM
burdetsky
Please add more
22 Aug 2018, 07:16 AM
coliban
@Motorhead: there is a big difference between Tesla and Porsche: Porsche is a German company, Tesla is
American. Therefore the SEC will do, as in the past where Musk pushed the share prices as he wanted with many,
many promises on production, quality and profits: nothing. Maybe some sort of alibi fine.
SEC will do as much as NTSB who are inactive considering AP and many victims in deadly Tesla-crashes in relation
to a very low distribution.
VW paid more than $25billion for non existing victims (it was indeed more than BP and Haliburton paid for the
catastrophe with Deepwater Horizon!). The same with Monsanto which was bought by Bayer: the trials against
Monsanto in the US were successful from that moment when Bayer bought Monsanto.
Many people in my country believe that US-Administration or whoever is doing some sort of economic war against
Germany.
22 Aug 2018, 02:27 AM
gliderboy_
Seeking Alpha, after Motorhead's article introduction, smartly advertises how easy it is "to become ..a contributor and
earn money". Very appropo IMO.
Article "accidental" omissions include:
FUD_1: Law professor/corporate-governance expert ..commented ..if motive for Musk's tweet "was frustration with
short sellers, ..that could be ..market manipulation"
Omission_1: Musk published blog on same day of "funding secured" tweet to explain (https://bit.ly/2LfQpk4). He
stated Tesla would be better off ..in environment focused on long term versus short term Q-Q prospects (as POTUS
Trump has recently proposed for all companies). Within blog he only factually states, "(Tesla) is most shorted stock in
history ..and being public means ..people have an ..incentive to attack the company". Should company CEOs support
short sellers scheming to reduce his company's shareholder value?
Omission_2: On August 13th, Musk explained he had already told his larger shareholders of his desire to take Tesla
public just prior to his tweet. And that as a result he felt it morally correct to inform the smaller Tesla shareholder of the
same.
Do you really want to listen to an advisor who only gives you one side of the story? This issue will be in the courts for
many years and IMO will decided in Tesla's favor.
Posted Aug 22, 2018
22 Aug 2018, 03:13 AM
kenberthiaume
so not lying about mythical "funding secured" takeover offers means he's supporting short sellers?
22 Aug 2018, 06:19 AM
Nigel Coombs
Motorhead conveniently forgets a very important point. The Porsche case was brought by shareholders. The Tesla
case is being brought by "unshareholders" in other words speculators / gamblers / short sellers like Motorhead who
are doing all they can to increase their winnings.
Casino frequenters cannot institute a class action when, against all odds, they lose their shirts!
Their case should be thrown out !
22 Aug 2018, 05:27 AM
kenberthiaume
Fraud is fraud. And longs who bought or didn't sell because they were assured of $420 are suing too.
22 Aug 2018, 05:55 AM
BYs
Would love to see proof of this statement.
22 Aug 2018, 06:14 AM

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8/22/2018 Tesla's Market Manipulation Lawsuits Could Kill Its Privatization Plans Given What Happened To Porsche - Tesla,

Tesla, Inc. (NA…

Tesla's Market Manipulation Lawsuits Could Kill Its Privatization Plans

Background on Porsche's Market Manipulation Lawsuits

The Case Against Musk for Stock Manipulation is Easier than

Tesla's 2019 Senior Note Could add Ammunition to the Stock

SEC Ruling Should be Key in How Much Tesla Faces in Legal

How Much Could the Legal Liabilities Amount to for Tesla?

Tesla's Share Price Could be a "Barking Dog" for a While

Tesla's Plans to Secure Funding to go Private Could also be

Weak Start for Q3 May also be a Motive for Musk's "Funding

Table-1: Tesla's July 2018 Vehicle Sales by Region

Source: Marklines, Inside EVs

Disclosure: I am/we are short TSLA, VIA PUTS.

21 Aug 2018, 06:36 PM

21 Aug 2018, 07:13 PM

21 Aug 2018, 07:28 PM

21 Aug 2018, 08:03 PM

The Reasonable Investor, Contributor

21 Aug 2018, 08:04 PM

21 Aug 2018, 08:34 PM

21 Aug 2018, 08:40 PM

21 Aug 2018, 08:46 PM

21 Aug 2018, 09:02 PM

21 Aug 2018, 09:04 PM

The Model 3 disaster was planned?

Elon works in mysterious ways.

21 Aug 2018, 10:30 PM

21 Aug 2018, 11:48 PM

22 Aug 2018, 12:06 AM

22 Aug 2018, 01:06 AM

22 Aug 2018, 01:39 AM

22 Aug 2018, 02:45 AM

22 Aug 2018, 03:54 AM

22 Aug 2018, 06:16 AM

22 Aug 2018, 06:25 AM

Analitik I am Montana Skeptic and so is my wife

22 Aug 2018, 06:51 AM

Hermann Balck i am Montana Skeptic

22 Aug 2018, 07:10 AM

Hermann Balck i am Montana Skeptic

22 Aug 2018, 07:24 AM

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21 Aug 2018, 06:43 PM

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21 Aug 2018, 07:31 PM

Retired auto analyst / CPA

21 Aug 2018, 08:06 PM

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21 Aug 2018, 10:47 PM

22 Aug 2018, 06:18 AM

Hermann Balck i am Montana Skeptic

22 Aug 2018, 07:26 AM

Bill Cunningham, Contributor

@Hermann Balck i am Montana Skeptic

What SC assets to you expect them to write off?

22 Aug 2018, 07:40 AM

Rob Marstrand, Marketplace Contributor

21 Aug 2018, 06:46 PM

21 Aug 2018, 06:49 PM

21 Aug 2018, 06:52 PM