Model 3 Car Crash for Tesla

Tesla ($TSLA) shares dove 7 percent on Thursday to close at a six-month low, after the company posted a larger-than-expected quarterly loss.

Published on November 2, 2017

Tesla ($TSLA) shares dove 7 percent on Thursday to close at a six-month low, after the company posted a larger-than-expected quarterly loss and admitted it would not achieve its previous production goal for its Model 3.

But the reversal for the super-charged stock may not have come as a huge shock to regular viewers of Real Vision’s expert interviews.

In a summer sit-down on June 13, 2017, Michael Lewitt, the CEO of Third Friday Management, went so far as to call Tesla investors “dumb.”

“Tesla may have some wonderful technology, it’s doing groundbreaking things, and all the rest,” Lewitt granted. “But at the end of the day, the valuation makes no sense.”

Tesla chairman and CEO Elon Musk “has repeatedly made statements he has not fulfilled,” Lewitt pointed out, foreshadowing the latest production letdown.

At this point, “it doesn’t seem reasonable to expect the company to do what it says it’s going to do,” he added.

Mark Spiegel of Stanphyl Capital went even further, calling Musk “an incredibly untrustworthy stock promoter” in an April 26 interview with Real Vision.

To this Spiegel added: “They lose a ton of money with essentially no direct competition and yet there is a massive amount of competition coming very, very soon.” And according to him, “They have absolutely nothing meaningfully or sustainably proprietary.”

All of this adds up to a “toxic brew” for the company’s shareholders, Spiegel concluded.

To get his latest views on Tesla, we sat down with Mark in yesterday’s podcast episode of Adventures in Finance, where he makes the bear case for the electric car manufacturer and explains why increasing competition from a series of luxury carmakers, advances in battery technology and the increasing skepticism surrounding Elon Musk’s outlandish promises are combining to set the company up for an uncomfortable ride… in the wrong direction.

You can listen to the episode in full below.

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Episode 40 - Electric Shock: The Shifting Sands Beneath Elon Musk & Tesla

Published On: Nov 2, 2017

Amidst a shift in the narrative surrounding Tesla ($TSLA) after a series of production issues and mounting losses, Mark B. Spiegel of Stanphyl Capital Partners makes the bear case for the electric car manufacturer and explains why increasing competition from a series of luxury carmakers, advances in battery technology and the increasing scepticism surrounding Elon Musk’s outlandish promises are combining to set the company up for an uncomfortable ride… in the wrong direction. Mark then bravely climbs aboard one of Musk’s Space X rockets to Mars and lets us know what he takes with him. And in Things I Got Wrong, Dr. Pippa Malmgren offers two valuable lessons she learned about having the courage of your convictions (and what to do when you are proven wrong) and how making certain compromises in a man’s world are perhaps not the right path for a young, ambitious woman to take.