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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (21228)	8/21/2018 9:29:21 PM
From: robert b furman	1 Recommendation Recommended By roguedolphin Read Replies (1) \| Respond to of 33421

HI el, I think you are exactly on the money! There is no special expertise to hand build innovative electric cars at a loss. Elon's greatest error is he chose a low margin business in which to prove his exceptional intelligence and attract bright minds. Sadly the ending epitaph will read "It wasn't SPACEX". Too confident and willing to accept high risk because he was unbeatable. TESLA will go broke,but it will pull a huge price in bankruptcy for several reasons. One will be for the innovative patents and advancements made in electric cars. The second and perhaps what brings in multiple bidders (and they all have big money) is they will be buying a manufacturer in the USA that does not have a franchised dealer body to share margins with. Think GM and they write a letter to al of the Cadillac dealers about how they are shutting down the unprofitable division and will write you a check that is 1/10th the cost of the dealers brick and mortar. Go 5 years with out a new model and blame it on slow sales. The come out with a factory owned new dynamic models at great prices i.e. Saturn. Saturns featured the next Chevrolet version of a cavalier with a new franchise logo. They were introduced the first year so cheap that used vehicles sold for more than the new sticker prices did! There's going to be a long line wanting to pick TESLA's bones -it will be of great value in bankruptcy! jmho Bob

To: elmatador who wrote (21228)

8/22/2018 1:21:17 AM

From: John Pitera

2 Recommendations

Recommended By
elmatador
roguedolphin

Read Replies (1) | Respond to of 33421

Yes it is..... TSLA I agree with Bob that there is value in the patents... but there are mountains of debt...

and the bond holders and other more senior debt obligations... I don't believe there is anything will be much
of anything left for the low man on the totem pole the poor common stock holder.....

the 7 year bonds are trading down to 88 cents on the dollar.... starting to enter junk territory

that was my these as we watched Elon and TSLA burn up cash and wrote about it in my post
last November 2017

Message 31349178

this post is better as I illustrate that even though the TSLA 1 year chart was in sell mode, the 5 year weekly
was at the area that you had to get long which was the correct answer then..... but remember we were in
a very aggressive bull market then.... in November of 2017

o: robert b furman who wrote (20347) 11/12/2017 11:55:58 PM
From: John P 3 Recommendations Read Replies (4) of 21239

TSLA is now being pitched as a software company...... I believe I specifically used TSLA as an example
of a business with a negative cash flow... which is Know as CASH BURN... and when you burn up all
the cash and burn up all your credit lines.... the creditors and banks get the assets. That's pretty simple
to understand... in my humble opinion. TSLA creates a veritable blizzard of written reports on sites
such as Seeking Alpha.... it's the company that everyone wants to analysis... dissect... etc.

that entire post is really a good read as I tie all the pieces together as to who is the big money running
the world... or at least several of the core axises.... there are a number of them

a post this month on the Saudi's and their cash flow burn problem as a country

Message 31737398

JJP