Have you considered that obsession with shorts is common in frauds about to be exposed?
Of course. But obsession with shorts is also common in gamblers. Where there is something new, the shorts are always there, because there are always people willing to believe that the "new thing" has not been thought through fully. Granted Tesla has not made a profit, yet, but it is a new startup and it has been 111 since a new car company of this scale started up in the US and Ford had some pretty hairy times at the beginning. Fortunately for Ford, electronic trading and shorts didn't exist then. If it had Ford would probably be in the grave like many other companies.
Have you considered that rapid executive turn over is common in frauds about to be exposed?
Yes that is one reason for executive turnover. Heading for the hills before the roof falls in.
There are other reasons though..
This Article explainsThe aura around Musk and Tesla’s approach to compensating employees with stock options are among the likely drivers of turnover at the company, according to Gene Munster, the co-founder of Loup Ventures.
“You have unique opportunities if you’ve worked for Elon,” Munster said by phone. “Apple went through this with Steve Jobs. Visionaries can be difficult to work for, but that’s not why people are leaving. They are leaving because they made a ton of money and they can write the next chapter of their careers.”
If people were leaving for equivalent, or worse, jobs, I could see that it would be an issue. In the cases I saw they moved for promotion.
Have you considered that erratic CEO behavior is common in frauds about to be exposed?
Absolutely. However Musk has "Eratically" brought SpaceX to prominence as one of the most competent private space companies in the world. Before that he was instrumental in bringing into being one of the biggest online payments systems in the world.
Have you considered that widespread shorting is common in frauds about to be exposed?
There was no fraud when Soros decided that the UK government would defend the £. He made billions. Because there was a problem with the UK, its currency or its economy. The opposite in fact. The only thing Soros needed was the UK to try and stay in the ERM. He made billions on the UK's attempt to stay in.
Shorters do it for ONE and only ONE reason. To make money by gambling that the value of the company will fall. If it rises they lose a packet.
Also screwing the gamblers is not an unknown thing. The UK government raised interest rates massively for one day only. The only purpose of this was to discourage the gamblers.
Shorts are already being discussed as damaging to business and there is talk of legislation to ban shorting.
Telling me that one, not very nice, set of people are sticking the knife in someone else, so they must not be very nice either, doesn't make a case for me.
Have you considered that "profitability is just around the corner" is common in frauds about to be exposed?
Absolutely. And if Tesla were not increasing their output, whilst saying they were going to be profitable, I would agree. If Tesla had not just spent a packet on a battery factory and a manufacturing facility, specifically designed to get production up (one time sunk costs), I would also agree. If Tesla were not on track to make 100,000 cars in the last 4 months of the year, I would also agree.
Companies which are about to defraud their investors do not make the kinds of investments we have seen in increasing production. They offer excuses and take the money and give big payouts to their directors. They don't push as hard as Tesla is pushing.
Also, as Tesla is not planning to make a new raft of factories in the US, right now, profitability has only one way to go. UP.
Tesla customers are very loyal, they are willing to wait years for their product and believe that Tesla will deliver it. Not only that, they believe Tesla is the only one which will deliver it.
Who would wait that long for a Ford or Chevy or, well, any other make of mass market vehicle.
Tesla has very good credentials for believing that profit is, quite literally, just round the corner.
Have you considered that accusing employees of sabotage is common in frauds about to be exposed?
It is also common when employees have done things to damage the company. Every company has done it and not all of them were in a good position when they did.
Have you considered that multiple SEC investigations are common in frauds about to be exposed?
Actually I tend to find that SEC investigations happen _after_ the mess and tend to pick over the bones of the mess.
It is quite easy to fall foul of the rules when you are trying as hard as Tesla and Musk are doing.
To be honest, I would have thought that the US would have been PROUD of having a brand new, market leader, in the most innovative area in the automotive industry since the ICE was first created.
Apparently I'm wrong.