Musk Wins? Tesla Loses

Bloomberg: Musk Wins! The SEC Blinks! Tesla Loses

"Those buying on the back of this latest twist in Tesla’s ever-more convoluted plot should untangle it and recognize it for what is is, though. There’s no vindication here. The CEO exposed his company to legal risk via a ridiculous claim of having a deal in hand for reasons that remain baffling. He has now merely settled some portion of that (investor lawsuits remain and this deal doesn’t appear to preclude further investigation by the Department of Justice) and kept his main job at the company.

The governance reforms – including the apparent check being placed on Musk’s Twitter habit – are a welcome side-effect. But they’re just a side effect, remember. And they aren’t what will fuel any rally Monday morning, anyway; rather, it will be relief on the part of Musk’s fans that he remains in the driving seat.

Such relief will, as ever, ignore Tesla’s seriously weak balance sheet and litany of oddities (for example, Musk’s recent claim the company was building its own delivery trucks to alleviate “logistics hell”). Most of all, it will ignore the fact that he sparked an entirely self-inflicted crisis that should never have happened in the first place."

We gladly remain short Tesla and may view any major rally as the gift it is - a great opportunity to short much more.



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