Business

Tesla Troubles Pile Up As Backlog Shows Company In Danger: Shortseller

Excerpt from Stanphyl Capital’s letter for the month of November 2018, discussing Tesla’s Q3 earnings report and the Model 3 demand.

Tesla Model 3 demand
Image source: Tesla

We remain short stock and call options in Tesla, Inc. (TSLA), which I consider to be the biggest single stock bubble in this whole bubble market. The three core points of our Tesla short position are:

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Q3 hedge fund letters, conference, scoops etc

1) Tesla has no “moat” of any kind; i.e., nothing meaningfully or sustainably proprietary.

2) Tesla will again soon be losing a lot of money and has a terrible balance sheet despite relatively light competition, but will soon be confronted with massive competition in every aspect of its business.

3) Elon Musk is extremely untrustworthy.

In October Tesla reported a surprisingly good (based only on the headline numbers!) Q3 earnings report, showing a GAAP profit of $311.5 million. It was also the best quarter Tesla will ever have, as in 2019 the company shall return to its money-losing ways. My October letter (written before Tesla released its 10-Q) contained a detailed analysis as to why I believed Tesla would show a GAAP loss of around $400 million next year. (Here’s a link, courtesy of ValueWalk.) However, after reading the 10-Q (released in November) and researching the emissions credits which contributed to most of Tesla’s Q3 income, I upped that loss estimate by at least $200 million (to $600 million) as the Model 3 sales mix shifts overseas where U.S. credits aren’t earned. Additionally (and even more importantly) I now believe Tesla is massively under-reserving for future warranty expense, and by “massively” I mean at a rate of approximately $200 million per quarter (I explain why in this Twitter thread), and if Tesla is forced to correct this its 2019 GAAP loss will be well over $1 billion even before hundreds of millions of dollars in potential lawsuit settlements. And to kick off Tesla’s awful 2019, here’s a great explanation as to why Q4 2018 (the one we’re in now) will be worse than Q3, along with a great take on how really bad Q1 2019 will be.

But lest you believe Q3 really did mark a significant and lasting turnaround for Tesla, keep in mind that no group has a better grasp of a company’s prospects than its executives, and yet their massive exodus continues, with the departure of multiple key accounting, production, and engineering people. Rather than listing the never-ending stream of new departures here, please use this link to see the astounding full list. Many of these people left millions of dollars in unvested stock on the table, and one must ask why. Do they assume that stock will wind up worthless? Were they asked to do things they were “uncomfortable” doing? Or is Elon Musk just so difficult to work for that it isn’t worth the millions of dollars they left behind? None of the answers to those questions are favorable to Tesla. While a couple of low-level whistleblowers have come forward publicly to report on internal dirty deeds at Tesla, with that many high-level departures I have no doubt that myriad more significant whistleblowers are doing the same.

Perhaps the most important ongoing Tesla story is the evaporation of North American Model 3 backlog. Despite Q3 production averaging just 4100 Model 3s per week (far short of the anticipated 5000 per week and Musk’s near-term goal of 6000), in mid-October Tesla began offering a slightly shorter-range (260 mile) Model 3 with a $3000 price cut vs. battery production savings I estimate at just $1500; in other words, Tesla is taking a $1500 per car margin hit. It also slashed the price of its AWD model by $1000 and cut the price of its most fully-equipped “Performance” model by $5000, thus causing thousands of Q3 (and early Q4) Performance buyers to scream in protest and thereby force Elon Musk to promise them $5000 refunds. (As an aside, Tesla also slashed prices in China this month (thereby killing its margins) to compensate for a plunge in sales due to higher tariffs there.)

Many people argue that “truly massive” Model 3 demand will be unleashed when Tesla offers an even shorter-range, lower-priced version in mid-2019; here’s why I think that’s wrong… First, I can’t see any way that a short range (approximately 220-mile) base car can be priced at less than $40,000 (including Tesla’s $1200 delivery charge) vs. Tesla’s original promise of $35,000 (a price which has now been scrubbed from Tesla’s web site). After all, the current base car with an 80 kWh battery sells for $50,000 (including the delivery charge). If Tesla cuts that battery size by 1/3 (25 kWh) it will only save around $5000, and if it then accepts a 10% cut in gross margin (to probably near-zero on an un-optioned base model), it would have to price the shorter-range car at around $40,000. Now let’s put that in perspective…

Tesla recently sat with piles of unwanted long-range (310 mile) rear-wheel drive Model 3 inventory at a net customer base price of $42,500 ($50,000 minus a $7500 tax credit); in fact, after it ran through over two years of order backlog in Q3, demand became so low for that model that Tesla has now eliminated it completely, mandating the purchase of all-wheel drive with the largest Model 3 battery pack. So if a small-battery Model 3 with 90 fewer miles of range will cost $40,000 (my estimate) and only come with an $1875 credit beginning in July (and no credit at all beginning January 2020), why would there be door-busting demand for a $38,175 ($40,000 in January 2020) 220-mile car when there was a glut of 310-mile cars at $42,500? When financing a car, who wouldn’t pay an extra $2500 for an extra 90 miles of electric range? And yet Tesla’s North American backlog of those buyers is gone. The real mass-market Model 3 demand was at $35,000 with a $7500 tax credit—a fictional product that Musk lied about to do massive capital raises in 2016 and 2017.

Meanwhile, the Model 3 continues to reveal itself to be a complete lemon (one that’s particularly disastrous in the winter), with the latest survey from True Delta ranking it dead last among all available vehicles. And in September British magazine What Car? ranked overall Tesla reliability so low that it’s in “a league” of its own. And speaking of lemons, although the latest Consumer Reports survey doesn’t have enough Model 3 data to provide a reliability estimate other than “average,” it downgrades the Model S to “worse than average” and thus “unacceptable” while the Model X is once again rated “much worse than average” and makes the “coveted” “10 Least Reliable Cars” list.

In November (as part of its settlement with the SEC over Musk’s fraudulent “420” Tweets) Tesla appointed Robyn Denholm as its mandated “independent” Chairman, someone who had already been on the board for over four years and was installed by Musk… That’s some “independence”! Meanwhile the “420 tweets” triggered an onslaught of lawsuits with a billion-dollar plus liability from investors who bought stock anticipating a buyout, and none of that (nor simultaneous SEC & DOJ investigations into fraudulent Model 3 production figures Musk used to sell a 2017 bond offering) went away with the SEC settlement.

In October (in a move likely forced by SEC or DOJ regulators) Tesla withdrew a $3000 option for “future full self-driving” that it offered since 2016 despite every expert in the field of autonomy saying was years from being possible and unlikely to occur with Tesla’s no-LiDAR hardware suite. If this vaporware product had 20% buyer uptake, it means Tesla now owes around $150 million in refunds and loses a nice ongoing source of gross margin. Additionally, Tesla is open to massive lawsuit claims from people who bought their $100,000 car only because they anticipated receiving “full self-driving” capability, something Musk claimed since 2016 was right around the corner; thus the liabilities for this fraud could run into hundreds of millions of dollars.

Meanwhile there’s an onslaught of luxury EV competition about to rip the face off sales of Tesla’s most profitable models, the S and X. First, the new Jaguar I-Pace electric crossover (which received fabulous reviews, handily beating Tesla in comparison test after comparison test) is now available in Europe and the U.S. for $14,000 less than the Model X and $8000 less than the Model S, gaps that will widen substantially as Tesla’s tax credits begin phasing out in January. I’ve driven the Jaguar and can assure you that no objective person will say it isn’t much nicer than any Tesla.

In December in Europe and April in the U.S. comes the Audi e-tron, an all-electric SUV with roughly the same estimated EPA range as the 237-mile base Model X but with a much nicer interior and a price that’s over $9000 lower before the Audi’s tax credit advantage. When the Audi arrives in the U.S. it will receive a tax credit that’s $3750 better than Tesla’s, thus stretching its price advantage to almost $13,000, and that advantage will grow to almost $15,000 in July when Tesla’s credit is reduced to just $1875 vs the full $7500 for the Audi. Then two more stunning electric Audis will follow the e-tron, in late-2019 & late 2020.

The Mercedes EQC all-electric SUV will be available in Europe in mid-2019 and in the U.S. in early 2020, with an EPA range nearly that of the base Tesla Model X (an estimated 225 miles vs. 237 for the Tesla) at a cost that’s approximately $26,000 less, as the Mercedes will sticker at around $65,000 and get a full $7500 tax credit while the Model X starts at $84,000 and will get no tax credit when the Mercedes arrives. (As an aside, by 2022 Mercedes will have ten fully electric models, covering nearly all its model lines.)

Although the Model X is larger than the Mercedes and Audi (and has optional third row seating and for $99,500 can take its range up to 295 miles), it had previously been the only luxury electric SUV, leaving buyers with no choice in that category. Now there are alternatives for those who prefer a smaller, easier-to-park vehicle with a much nicer interior and vastly better service facilities, as well as more practical doors than the Tesla’s oft-malfunctioning “falcon wings” (which prevent the ability to mount a rooftop storage unit, something both the Mercedes and Audi can do). I thus expect buyers will flee en masse from the “X” to the nicer and much less expensive Audi and Mercedes, while the Jaguar—more of a crossover than an SUV—will provide terrific competition for both the Model X and the Model S.

Next in luxury EV competition for Tesla will be the Autobahn and Nürburgring-tested Porsche Taycan, which is available in 2019 with a base price similar to that of the base Model S, and thus may be less expensive with the advantage of the tax credit Tesla soon loses. Hmmm, Tesla or Porsche… tough choice!

Meanwhile Tesla continues to downsize its SolarCity division while a civil securities fraud case accusing Musk of using Tesla to bail out his (and his family’s) interests there proceeds; earlier this year Zero Hedge included an excellent summary of the suit by Twitter user @TeslaCharts in this story about SolarCity’s latest retrenchment which will undoubtedly help fuel that fraud case, as will this later story describing how Tesla sales people have no idea when the solar tiles or PowerWalls used to justify that merger will ever be available. (Remember that when Musk was promoting that merger he used fake solar tiles on a fake house at a movie studioHow appropriate!)

Finally, Tesla is increasingly besieged by a wide variety of lawsuits for securities fraud, labor discrimination, worker safety, union-busting, sudden acceleration and lemon law violations, and new ones appear on a regular basis. In fact, one could even argue that Tesla is a criminal enterprise.

So here is Tesla’s competition in cars (note: these links are continually updated)…

THE NEW ALL-ELECTRIC JAGUAR I‑PACE

2019 Jaguar XJ to be reborn as high-tech electric flagship

Audi e-tron electric SUV is available early 2019

Audi e-tron Sportback comes late 2019

Audi e-tron GT enters production late 2020

Mercedes unveils the 2019 EQC Electric SUV

Mercedes to launch 10 all-electric models by 2022

The 2019 Porsche Electric Taycan

Porsche Electric Mission E Cross Turismo goes into series production

Porsche Aims At Tesla Again With An Electric SUV, Taycan Targa and Possible Boxster EV

258-Mile Hyundai Kona electric arrives early 2019 for under $40,000

240-Mile Kia Niro EV Arrives January 2019 at Under $40,000

The 2020 Kia Soul EV Is More Powerful Than Before and Has 260-mile Range

14 new EV models by Hyundai-Kia by 2025

Chevrolet Bolt Offers 238 Miles On A Single Charge For $37,495

GM to introduce 3 more electric cars before 2020, battery cells at <$100/kWh

VW to spend $50.2 billion on electric, autonomous vehicles by 2023

Here's how Volkswagen plans to turn itself into the world's largest EV maker

VW Is Planning $21,000 Subcompact E-Car to Challenge Tesla

220-mile Nissan Leaf reportedly coming in 2019 for $35,000

Nissan Leaf-based SUV coming in 2020

Volvo Polestar 2: 350-mile range, £30,000 starting price

Volvo To Start Selling Electric Trucks In 2019, Some Will Hit The Road This Year

BMW iX3 electric crossover goes on sale in 2020

BMW i4 confirmed for production in 2021 with 435-mile range

BMW to have 25 electrified models by 2025

Ford plans $11 billion investment, 40 electric vehicles by 2022

Toyota, Mazda, Denso create company to roll out electric cars beginning 2019

Toyota to market over 10 battery EV models in early 2020s

Renault aims to remain EV leader in Europe

Infiniti will go mostly electric by 2021

DS 3 Crossback will give PSA's upscale brand an electric boost

ALL-ELECTRIC MINI COOPER COMING IN 2019

Smart Will Electrify Its Entire Line-up By 2020

SEAT's first electric car is due in 2020

Opel will launch full electric Corsa in 2020

2019 Skoda e-Citigo confirmed as brand's first all-electric model

Skoda planning range of hot all-electric eRS models

New Citroen C4 Cactus to be first electrified Citroen in 2020

MG E-Motion confirms new EV sports car on the way by 2020

Fiat Chrysler bets on electrification for Alfa, Jeep and Maserati

Maserati offering three fully electric cars between 2020 and 2022

Rolls-Royce is preparing electric Phantom for 2022

Honda will offer full-EV or hybrid tech on every European model by 2025

Bentley mulls electric car to help reduce carbon footprint

Subaru to introduce all-electric vehicles by 2021

Ssangyong e-SIV concept previews 2020 EV

Dyson Moves Ahead on $2.6 Billion Electric Car Plan

Lucid Motors closes $1 billion deal with Saudi Arabia to fund electric car production

Borgward BXi7 Electric SUV Flies Under The Radar

Rivian launches all-electric 7-seat SUV with over 410 miles of range

Rivian Automotive's electric pickup breaks cover

Detroit Electric promises 3 cars in 3 years

SF Motors reveals two electric SUVs for 2019 with 300 miles of range

Two new electric cars from Mahindra in India by 2019; Global Tesla rival e-car soon

Saab asset owner NEVS plans electric car production

EVelozcity Raises $1 billion For EV Startup

And in China…

BYD Presents All-Electric SUV With 600km Range, 0-100km/h in 4.4 secs @ $37k-$52K

Top of Form

Bottom of Form

Daimler & BYD launch new DENZA electric vehicle for the Chinese market

BAIC and Daimler to Build $1.9 Billion China Plant

Daimler to Start EQC Electric SUV Production in China in 2019

Volkswagen makes €15bn bet on electric cars in China

Volkswagen Group China’s mega-factory in Foshan will strengthen e-mobility strategy in China

VW signs deals for EVs, autonomous driving in China

Audi to launch 7 new energy vehicle models in China by 2020

GM China raises new-energy vehicle target to 20 models through 2023

Nissan & Dongfeng to invest $9.5 billion in China to boost electric vehicles

Toyota to Introduce 10 New Electrified Vehicles in China by 2020

Infiniti bringing EVs to China’s luxury car market

BMW will develop and produce electric Mini in China

Ford ramps up electric vehicle push in China

Jaguar Land Rover's Chinese arm invests £800m in EV production

SAIC building factory in China for EVs from Roewe and MG

Renault and Brilliance Automotive to build 3 new electric light commercial vehicles for China

Honda launches new all-electric Everus VE-1 for ~$25,000 in China

Changan building large scale NEV factory

Mazda and Changan Auto join hands on electric vehicles

WM Motors/Weltmeister EX5 Electric SUV Launched On The Chinese Car Market

NIOS ES8 Electric Crossover debuts with half the Tesla Model X’s price tag

Geely invests $5 billion into new electric car factory in China

Chery Breaks Ground on $240M EV Factory in China

Chery's second EV plant open in Dezhou

DearCC Launches ENOVATE Electric SUV

XPENG Motors launches first smart pure electric SUV, The XPENG G3

GAC Trumpchi to launch range-extended EVs

Guangzhou Auto To Launch Four New Electric Cars By 2020

Chinese carmaker Byton unveils its fully autonomous rival to Tesla's electric sedans

Chinese-backed electric car start-up Byton woos CES with model 40% cheaper than a Tesla

Great Wall Launches New EV Brand (ORA) In China

Singulato iS6 Electric SUV Debuts With 249-Mile Range

Singulato, BAIC partner to promote smart new energy vehicles

FAW (Hongqi) to roll out 15 electric models by 2025

JAC’s Electric Car Has A Range Of 500 Kilometers

ICONIQ to build electric cars in Zhaoqing with total investment of RMB 16 billion

Quianu Motor aims to grab share of US electric vehicle market

Hozon Kicks Off Mass Production With All-Electric Neta N01

Aiways to develops 25,000 euro e-SUV

All-electric NEVS 9-3 sedans (nee Saab) being built in China

Youxia Motors raises $1.25 billion to start 2019 EV production

Wanxiang Gets China Electric Vehicle Permit to Make Karma Cars

Qoros Auto's new owner plans to be an EV power

JMC (Jianling Motor Corp.) Starts New EV Brand In China

Thunder Power Chinese EV manufacturer clinches deal with Belgian investment fund

Leapmotor raises RMB2.5 billion for Series A round to build electric cars

Continental, Didi sign deal on developing EVs for China

Here’s Tesla’s competition in autonomous driving…

Tesla Ranks Last for Automated Driving

What Smart Tesla fans Get Wrong about Full Self-Driving

A Tesla self-driving blind spot that few are focusing on

Waymo Starts First Driverless Car Service

Jaguar and Waymo announce an electric, fully autonomous car

Waymo Expands Chrysler Self-Driving Fleet 100-Fold to 62,000

Uber, Waymo in talks about self-driving partnership

Lyft and Waymo Reach Deal to Collaborate on Self-Driving Cars

Cadillac Super Cruise™ Sets the Standard for Hands-Free Highway Driving

GM ride-hailing fleet would ditch steering wheel, pedals in 2019

Honda Joins with Cruise and General Motors to Build New Autonomous Vehicle

SoftBank Vision Fund to Invest $2.25 Billion in GM Cruise

An Overview of Audi Piloted Driving

Mercedes plans advanced self-driving tech for next S class

Nvidia to test fleet of robotaxis in 2019 with Daimler, Bosch

NVIDIA and Toyota Collaborate to Accelerate Market Introduction of Autonomous Cars

Volkswagen and NVIDIA to Infuse AI into Future Vehicle Lineup

Volvo, Nvidia expand autonomous driving collaboration

Continental & NVIDIA Partner to Enable Production of Artificial Intelligence Self-Driving Cars

Bosch and Daimler join forces to market fully automated, driverless taxis by 2020

Intel’s Mobileye will have 2 million cars (VW, BMW & Nissan) on roads building HD maps in 2018

Volkswagen Group and Aurora Innovation Announce Strategic Collaboration On Self-Driving Cars

Toyota Adds $2.8 Billion to Software Push for Self-Driving Cars

Toyota, SoftBank in first-ever alliance, target self-driving car services

Toyota Invests $500 Million in Uber to Get Self-Driving Cars on the Road

Nissan and Mobileye to generate, share, and utilize vision data for crowdsourced mapping

Magna joins the BMW Group, Intel and Mobileye platform as an Integrator for AVs

Intel collaborates with Waymo on self-driving compute design

Fiat Chrysler to Join BMW, Intel and Mobileye in Developing Autonomous Driving Platform

Ford-Backed Driverless-Car Startup Argo AI Lures Talent

Ford to invest $4 billion in new self-driving vehicle unit

Ford, Baidu to start self-driving road tests in China

Baidu unveils autonomous driving platform backed by 90 global partners

Baidu plans to mass produce Level 4 self-driving cars with BAIC by 2021

Daimler and Baidu to Enhance Strategic Cooperation in Automated Driving

Volvo, Baidu to co-develop EVs with Level 4 autonomy for China

VW taps Baidu's Apollo platform to develop self-driving cars in China

Lyft, Aptiv (formerly Delphi) partner on driverless ride-hailing at 2018 CES in Vegas

Lyft, Magna in Deal to Develop Hardware, Software for Self-Driving Cars

Hyundai, Aurora to release autonomous cars by 2021

Deutsche Post to Deploy Test Fleet Of Fully Autonomous Delivery Trucks This Year

Byton cooperating with Aurora on autonomous vehicles

ZF plans $14 billion autonomous vehicle push

Magna’s new MAX4 self-driving platform offers autonomy up to Level 4

Bosch Creates a Map That Uses Radar Signals for Automated Driving

Groupe PSA’s safe and intuitive autonomous car tested by the general public

Tencent, Changan Auto Announce Autonomous-Vehicle Joint Venture

JD.com Delivers on Self-Driving Electric Trucks

NAVYA Unveils First Fully Autonomous Taxi

Fujitsu and HERE to partner on advanced mobility services and autonomous driving

Lucid Chooses Mobileye as Partner for Autonomous Vehicle Technology

First Look Inside Zoox’s Autonomous Taxi

Apple Is Focusing on Making an Autonomous Car System

Samsung, Harman gear up for self-driving automobiles

Mitsubishi Electric Develops Automated Mapping For Autonomous Driving

Hitachi demonstrates vehicle with 11-function autonomous driving ECU

DENSO and NEC Collaborate on Automated Driving and Manufacturing

Nuro’s Robot Delivery Vans Are Arriving Before Self-Driving Cars

Here’s Tesla’s competition in car batteries…

LG Chem targets electric car battery sales of $6.3 billion in 2020

LG Chem to build $1.8 bln EV battery plant in China

Samsung SDI Unveils Innovative Battery Products at 2018 Detroit Motor Show

SK Innovation invests $2.5bn to realize EV battery ambition

New Toshiba EV Battery Allows 320km Charge in 6 Minutes

Daimler starts building electric car batteries in Tuscaloosa – one of 8 battery factories

Panasonic Opens New Automotive Lithium-Ion Battery Factory in Dalian, China

Panasonic forms battery partnership with Toyota

CATL’s Chinese battery factory will be bigger than Tesla’s Gigafactory

CATL to set up battery cell manufacturing in Germany

BYD to quadruple car battery output with lithium site plants

GM inaugurates battery assembly plant in Shanghai

Volkswagen plans entry into battery cell production

VW Wants to One-Up Tesla With a Next-Generation Battery

Honda Partners on General Motors' Next Gen Battery Development

Energy Absolute Plots Asian Project Rivaling Musk's Gigafactory

France's Saft plans production of next-gen lithium ion batteries from 2020

ABB teams up with Northvolt on Europe's biggest battery plant

Chinese Battery Maker to Open Factory Next to Swedish EV Plant

Sokon aims to be global provider of battery, electric motor, electric control systems

BMW Group invests 200 million euros in Battery Cell Competence Centre

BMW Brilliance Automotive opens battery factory in Shenyang

BMW announces partnership with solid-state battery company

Toyota promises auto battery 'game-changer'

VW increase stake in solid-state batteries with $100M investment

Hyundai Motor developing solid-state EV batteries

Continental eyes investment in solid-state batteries

Wanxiang is playing to win, even if it takes generations

UK provides millions to help build more electric vehicle batteries

Rimac is going to mass produce batteries and electric motors for OEMs

Elon Musk Has A New Battery Rival (Romeo Power) Packed With His Ex-Employees

Bracing for EV shift, NGK Spark Plug ignites all solid-state battery quest

ProLogium Technology Will Produce First Next Generation Lithium Ceramic Battery For EVs

Here’s Tesla’s competition in storage batteries…

Panasonic

Samsung

LG

BYD

AES + Siemens (Fluence)

GE

Bosch

Mitsubishi Hitachi

NEC

Hitachi Chemical

Toshiba

ABB

Saft

Johnson Contols

EnerSys

SOLARWATT

Schneider Electric

sonnenBatterie

Kokam

Sharp

Eaton

Nissan

Tesvolt

Kreisel

Leclanche

Lockheed Martin

EOS Energy Storage

ESS

UET

electrIQ Power

Belectric

Sunverge

Stem

ENGIE

Exergonix

Redflow

Renault

Fluidic Energy

Primus Power

Simpliphi Power

redT Energy Storage

Murata

Bluestorage

Adara

Blue Planet

Clean Energy Storage Inc.

Tabuchi Electric

Younicos

Orison

Moixa

Powin Energy

Nidec

Powervault

Schmid

24M

Eelpower

Ecoult

Innolith

LithiumWerks

And here’s Tesla’s competition in charging networks…

Electrify America: Our Plan

EVgo Installing First 350 kW Ultra Fast Public Charging Station In The US

Tritium’s First 350-kW DC Fast Chargers Coming To U.S.

Porsche plans network of 500 fast chargers for U.S.

Recargo Ultrafast West Coast Charging

BMW, Daimler, Ford, VW, Audi & Porsche form IONITY European 350kw Charging Network

E.ON to have 10,000 150KW TO 350KW EV charging points across Europe by 2020

Enel kicks off the E-VIA FLEX-E project for the installation of European ultra-fast charging stations

Europe’s Allego “Ultra E” ultra-fast charging network now operational

Allego & Fortum Launch MEGA-E High Power Charging network for Europe’s Metropolitan areas

ChargePoint Secures $240 Million in Additional Funding; $500 million raised in total

UK's Podpoint installing 150kW EV rapid chargers this year; 350kW by 2020

UK National Grid plans 350kW EV charge point network

Fastned building 150kw-350kw chargers in Europe

Deutsche Telekom to build electric car charging network in Germany

ABB powers e-mobility with launch of first 150-350 kW high power charger

Shell buys European electric vehicle charging pioneer NewMotion

BP buys UK's largest car charging firm Chargemaster

Total planning EV charging points at its French stations

Yet despite all that deep-pocketed competition, perhaps you want to buy shares of Tesla because you believe in its management team. Really???

Elon Musk Settles SEC Fraud Charges

Elon Musk, June 2009: “Tesla will cross over into profitability next month”

Tesla SEC Correspondence Shows A Pattern Of Inaccurate, Incomplete & Misleading Disclosures

Tesla: Check Your Full Self-Driving Snake Oil Expiration Date

As Musk Hyped and Happy-Talked Investors, Tesla Kept Quiet About a Year-Long SEC Probe

The Truth Is Catching Up With Tesla

With Misleading Messages And Customer NDAs, Tesla Performs Stealth Recall

Who You Gonna Believe? Elon Musk's Words Or Your Own Lying Eyes?

How Tesla and Elon Musk Exaggerated Safety Claims About Autopilot and Cars

When Is Enough Enough With Elon Musk?

Musk Talked Merger With SolarCity CEO Before Tesla Stock Sale

Debunking The Tesla Mythology

Tesla Continues To Mislead Consumers

Tesla Misses The Point With Fortune Autopilot Story

Tesla Timeline Shows Musk's Morality Is Highly Convenient

Tesla Scares Customers With Worthless NDAs, The Daily Kanban Talks To Lawyers

Tesla: Contrary To The Official Story, Elon Musk Is Selling To Keep Cash

Tesla: O, What A Tangled Web We Weave When First We Practice To Deceive

I Put 20 Refundable Deposits On The Tesla Model 3

Tesla's Financial Shenanigans

Tesla: A Failure To Communicate

Can You Really Trust Tesla?

Elon Musk Appears To Have Misled Investors On Tesla's Most Recent Conference Call

Understanding Tesla’s Potemkin Swap Station

Tesla's Amazing Powerwall Reservations

So in summary, Tesla is losing a massive amount of money even before it faces a huge onslaught of competition (and things will only get worse once it does), while its market cap tops that of Ford and GM’s despite selling approximately 300,000 cars a year while Ford and GM make billions of dollars selling 6 million and 9 million cars respectively. Thus this cash-burning Musk vanity project is worth vastly less than its roughly $70 billion enterprise value and—thanks to its roughly $31 billion in debt and purchase obligations—may eventually be worth “zero.”