Whitney Tilson’s email to investors discussing only 7 takers of his TSLA bet; landlords to Tesla: you’re still on the hook for your store leases.
1) I’m shocked that only 7 people have taken me up on my wager (of the 73 who clicked through to the page): 4 for $100, 2 for $250 and 1 for $500 — $1,400 total.
It perhaps shows the type of people on my email list (sensible) – but also how few people disagree with me.
2) The Mickey Mouse Show continues. These landlords don’t fu*k around – they will CRUSH Tesla (and Tesla knows this – that’s why it appears to be reversing this idiotic decision). I’d love to know the decision-making process behind this decision. Did Musk just decide and not even inform, much less consult his board? What a joke…
Landlords To Tesla: You’re Still on the Hook for Your Store Leases
Landlords could seek a court injunction to prevent electric car maker from closing stores before the lease expiration
New Tesla vehicles are displayed at a Tesla showroom in San Francisco.
Tesla plans to save money by closing most of its retail stores and selling all cars online face a big potential hurdle: Store landlords show no signs of giving the company an easy way out of its leases.
The electric car maker has offered few details about which of its 106 stores and galleries in 26 states it plans to close. Even many shopping center landlords say they have heard nothing from the company about whether their Tesla store will be shut down, according to real-estate brokers and landlords.
What is clearer is how much Tesla owes in future rent payments. The company has total lease obligations of $1.6 billion, with $1.1 billion due between this year and 2023, according to its securities filings. The payments include leases for stores, galleries and other uses including real estate abroad.
Read the full article here by Esther Fung, The Wall Street Journal