There is more at play here. I think it's mania and a strong case of the market can remain irrational longer than the short can remain solvent. Tesla, at the current fundamentals, is worth much less than $650Bn. How is that possible and how one takes a company with y value to 10.y is still not yet answered.
Maybe Elon Musk is not a fool after all. He did buy Twitter at a big mark up. But if momentum drove his market cap and he can capitalize on that through the stock market then buying Twitter does make sense: It's backed by Tesla stock but the Tesla stock itself is backed by Twitter.
Lots of topics to cover this week aside from the headline story, but here is the breakdown for today’s Tesla Weekly:
Bombshell Complaint Filed Against Musk & Tesla—The Main Story Of This Report: An amended complaint in the Greenspan v. Musk et al trial was filed on Wednesday with damning internal data from Tesla highlighting a vast array of accounting fraud. It’s an explosive report, which is why it is the focus of today’s Tesla Weekly.
Trading Thoughts: Tesla is down 6.4% on the week through yesterday on lower-than-average volumes. Break outs to the upside were swiftly sold down, but there was an effort to keep the stock above $203, its 200-day moving average.
China Weekly Sales Suddenly Dropped Last Week: Despite 0% loans from Tesla and $2,800 incentives from the PRC, Tesla’s sales last week dropped by 17% YoY. This is odd given the low hurdle from Q3 2023.
maybe I missed it, but I could not find anything substantial regarding the more recent years. Most points are about accounting interpretations in the years up to 2020 when Tesla finances still were weak...
What did I miss about any issues with current accounting malpractices?
