Tesla's "Reckless" Management Will Lead to Its Demise, Says Short-Seller
*By Michael Teich*
The entire market is in a bubble, according to Mark Spiegel, a short-seller at investment firm Stanphylーand Tesla may be the biggest one of all.
"It's a terrible business," he said in an interview on Cheddar Tuesday. "The financials are terrible and getting worse."
Tesla stock closed below $300 a share on Tuesday, its lowest level since early June. Shares are down 20 percent from their highs of the year. Spiegel thinks it's only a matter of time before the stock really crashes.
There's plenty to rattle investors. The company has burned through $8 billion in cash over the last four years and has more than $10 billion in debt. On Sunday, a report emerged that the company was asking for refunds from suppliers to help it turn a profit, though Tesla said it was only negotiating contracts on projects that were still active. And late Monday, the company said a top sales executive was leaving the company.
Spiegel said the recent string of executive departures is a sign of rising fatigue among insiders. He also said Elon Musk is partially to blame, calling his leadership reckless and describing the CEO as an "incredibly deceptive guy."
"He thinks you have to be as smart as he is to see through his BS. When in fact you don't have to be, you can just fact check."
One potentially problematic area, for SpiegelーTesla's self-driving cars, which he says aren't nearly as safe as CEO Elon Musk would like.
"Their autonomous driving tech is way behind," he added. "What they put on the road ... does more than what other people are willing to put on the road"
Tesla will report its second quarter earnings on August 1.
For full interview, [click here] (https://cms.cheddar.com/videos/VmlkZW8tMjA5NzM=).
The dreaded Netflix crackdown on profile sharing translated into a major boost in subscribers while the promised rate cuts seem to be a far off fantasy.
After the 2021 boom, IPO activity slowed down significantly, in part due to monetary policy – but things are getting moving again with tech-friendly companies like Iboutta and Rubrik making a public debut.
With an increasing demand for mental health services, one person wanted to change the therapy game. In 2017, CEO Alex Katz founded Two Chairs, a company that uses technology to match patients with the right therapist.
Not only is April Financial Literacy Month, it’s also the kickoff of the spring homebuying season. So now is the time to make sure you have a financial plan in place – and why it might not be wise for that to include buying your first home.
While the U.S. may slowly be on the path to lowering inflation (and therefore interest rates), Europe has thoroughly trounced America, putting it on the path to lower rates by this summer.
April's release of the monthly Housing Starts and Building Permits reports by the Census Bureau provides crucial insights into the construction activity in the housing market. These reports are an economic indicator, shedding light on the current state of the housing market and its broader economic impact.
