on TSLA :
Tesla has engaged in aggressive accounting that calls to mind the experiences of Enron and WorldCom; its future is highly uncertain
How closely does TSLA’s financing model mirror the features of common Ponzi, Pyramid, and Matrix schemes?
− Numerous cautionary examples share features with TSLA, including hype driven by “visionary leaders”
− TSLA has accepted capital from unsophisticated investors with bold claims on return and/or product value
− If TSLA fails to deliver on these claims it has the potential to enter a death spiral
− Most common death spirals do not require malicious intent, but rather excessive (even delusional) ambition
The profitability of the Model 3 depends on TSLA’s ability to squeeze its supply chain; this is a tall order
− Sophisticated suppliers (most notably Panasonic) will fight for their share of the profit
− Panasonic’s rechargeable battery division is constrained in terms of investment capacity and profit demands
− Current suppliers of numerous strategic, high-technology components have little IP and export to the US
− Many Chinese suppliers are vulnerable to patent infringement accusations and could face ITC injunctions
TSLA’s use of tax credits disproportionately benefits the wealthy at the expense of the average taxpayer
− This inequality is a feature of the luxury-first market penetration strategy
− The election year introduces significant risk for TSLA’s continued reliance on taxpayer subsidies