Government subsidized technology is developed and Musk cashed in. Then cashed out. Then left stock holders holding the bag. It's like the Simpsons monorail episode...
In light of Tesla's earnings miss and Musk's admission of the firm's cash crunch just a month after Tesla announced it would bail out its weaker cousin, Solar City, We ask you: how can a visionary such as he not see 30 days down the road?
Here is a repost from our observations just 3 weeks ago on the likelihood of fraud at Tesla and Musk's other companies.
Businesses cannot stand on their own feet without some form of Government aid. Whether that be in QE form or direct subisidies, the marketplace is no longer a "Free Market". Tesla and its dependents are an example of what is wrong with our capital market system.
Elon Musk is using the Government as a backstop for his businesses. He is depending on easy money to support companies that would otherwise fail from debt. In short, the business structure of Tesla, SolarCity and SpaceX is a microcosm of the problem with our current capital markets.
- By Soren K. with contributions by Doug and Dinsdale Piranha and the CFO of a prominent hedge fund that has no position in the stock.
The Business of Crony Capitalism
Elon Musk has controlling stakes in 3 companies: Tesla, SolarCity, and SpaceX. Tesla and SolarCity are publicly traded. SpaceX is not publicly traded. This document's focus will be soley on the financial interdependencies of the companies. There are also incestuous business practices, and nepotism within the leadership of each company Musk controls.
We hope to illustrate simply and clearly the immense risk the US government has taken with your money by giving it to a man who is essentially telling them what they want to hear while picking their pockets doing it.