Tesla just months from total collapse, says hedge fund manager

Another Tesla demonstrates the makes built in barbecue feature neds some work (picture source: Zero Hedge
Another Tesla demonstrates the makes built in barbecue feature neds some work (picture source: Zero Hedge

The American electric-car company Tesla will be bankrupt within four months unless its CEO Elon Musk “pulls a rabbit out of his hat,” according to hedge fund manager John Thompson. “Companies eventually have to make a profit, and I don’t ever see that happening here, this is one of the worst income statements I’ve ever seen and between the story and the financials; the financials will win out in this case.” the head of Vilas Capital Management told Market Watch.”

Thompson manages $25 million and his Tesla short is the fund’s biggest position. He has been betting big against the electric automaker for years.

Last April, Tesla stock hit a record high of around $300 and continued to grow to $389.61. Nevertheless, Thompson’s fund still managed to churn out a 65-percent gain for the year. Since then, Tesla has fallen sharply and Thompson is confident his bet is about to pay off. Tesla shares were down more than 8 percent at Wednesday closing to $279.18. The hedge fund manager said that if his prediction comes true, his fund could surge by another 50 percent. He noted that he is investing $500,000 of his own money.

“Tesla, without any doubt, is on the verge of bankruptcy,” Thompson told clients in an email. He explained that funding will be hard to come by in the face of problems in delivering the Model 3, declining demand for the Model S and X, extreme over – valuation on the stock market, and a likely downgrade of its credit rating by Moody’s from B- to CCC.

Another fatal crash earlier this month that left a Tesla Model X smouldering on the shoulder of the southbound lane of Highway 101 in Mountain View has hammered Tesla shares to their lowest level in a year while pushing the yield on its debt above 7% (though an ill-timed downgrade from credit rating agencies also had something to do with that).

Once again, Tesla finds itself under scrutiny from the U.S. National Transportation Safety Board. The last brush with the regulator ended without incident – the agency ruled that a fatal Florida crash was the result of driver error, and that Tesla’s controversial autopilot software (which has been implicated in several fatal accidents) was not at fault, though this verdict should be treated with some scepticism as it is based on the fact that the car was on autopilot, which is not a technology sold as offering full vehicle autonomy. It seems odd therefore that a judge can say the driver was at fault when in fact the car should have a failsafe mechanism to prevent stupid drivers from abusing what is intended to be an electronic assistant.

As two teams from the NTSB sift through the evidence gathered from the site of the latest demonstration of Tesla’s self – immolating feature, the company said in a blog post published Tuesday night that it hasn’t been able to analyze any of the data collected from the scene – and therefore doesn’t yet know what caused the crash – because the car was so badly damaged, as Bloomberg reported.

The company hasn’t been able to retrieve the vehicle’s logs and is working with authorities to access them. Tesla hasn’t disclosed whether the driver had engaged Tesla’s partially autonomous driving system, known as Autopilot, when the crash occurred.

Interest in the effectiveness of self-driving technologies is at crisis thanks to a deadly Uber Technologies Inc. accident that happened days earlier involving an autonomous car and a woman who was crossing the street with her bicycle.

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Tumbleweed City West Midlands

Mainstream media are getting their knickers in a twist this morning over gloomy reports from the retail industry. Predictions of “The death of the High Street” abound.

More Closures Likely In Retail Sector:The festive period has been a gloomy one with Barratts Priceless axing over 1,600 jobs and La Senza and D2 Jeans going into administration. Industry leaders have warned that mass discounting failed to kickstart a recovery … The Guardian

High Street Retailers Being Squeezed To Extinction : More shops will collapse into administration or announce store closures in the next couple of weeks, afters suffering from “profits squeezed to extinction” as well as a fall in sales over Christmas, according to the head of Britain’s retail trade body … Daily Telegraph

All in all it conjures up images of desterted town centre streets lined with derelict and decaying shops. A howling wind stirs up dust devils and drives a few ominoius looking tumbleweeds. Somewhere, some unseen creature whistles eerily, wooo – oo – oo – oo – ooo – wooo – oo – ooo and a distant, lone Church bell tolls a funereal rhythm.

How can Boggart Blog predict the furure in such detail?

Well Accrington town centre has been like that for twenty years.

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Shock, Horror! Kerry Katona Declared Bankrupt.

Worst of all the terrible news last week was that Kerry Katona was declared bankrupt. The ex-Atomic Kitten, ex-Queen of the Jungle and current face of Iceland Freezer Stores (and possible future face of Cash Converters) lost her battle with the Inland Revenue after having paid off all but £80,000 of a $450k debt.

A brighter gil would have held on to her cash and gone bust for the whole lot of course. It’s to her credit though that Kerry found time to earn that much money in between producing babies. Since divorcing ex – boy band member Brian Mcsomeone and taking up with a much more pikey partner, Kerry hs been breeding faster that a Queen Ant. Honestly the girl must have a vagina like a wizard’s sleeve, she just keep yanking babies out.

Kerry is putting on a brave face, “I just have to lay another batch of eggs, pick myself up and carry on,” she told Boggart Blog.

Perhaps Kerry is not as dumb as we suggested. If she carries on breeding she will be able to claim back all that tax money in child benefits.

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