"Funny" Elon Musk Jokes About Tesla Stock "High" at $420
Tesla CEO thinks Tesla's stock *high* is funny because, you know, $420.
Tesla CEO cracked wise today in a tweet about the stock *high* when it briefly hit $420.
That is hilarious considering, as I noted in Tesla's Q3 "Magic" Fades Quickly In Q4:
Q3 reported "profit" was not actually *profit* (again) because it was generated using one-offs, unusual items, & dicey accounting while core operating margins shrank on falling revenue
M3 *demand* has proven to be incremental which has not been sustained and MS & X demand remains in freefall
Cash/liquidity relies on increased borrowing and low-key equity raises
Q4 revenue & "profits" likely will be down y/y on projected Deliveries up 14% (& management lowered guidance versus previous targeted Q4 up 14-58% to get 360-400k for the year)
So yes, Elon. Very funny. Now do near-bankrupt WeWork, which was valued at $47 billion just a few months ago.
Softbank Group just laughs and laughs about WeWork's spectacular collapse—or not (see my latest on that debacle in WeWork Is Foundering While Softbank Struggles With Its Bailout on 11/27/19).
But it's good to remember that equity price on a cult stock can be a poor indicator of the company’s underlying value and risk.
Look for more discussion in my upcoming report.
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