In Bizarre Tweet, Elon Musk Threatens Shorts With "Unreal Carnage"

Two days after the "most unusual conference call in 20 years", in which Elon Musk cut off questions from Bernstein and RBC research analysts, the Tesla CEO's descent into some "unstable genius" abyss is, unfortunately, accelerating.

It started very late on Thursday Pacific time, when perhaps unable to procure ambien, Musk took to twitter (after spending the entire night in the factory) and in a series of disjointed, rambling tweets attacked the research analysts (who were merely doing their work, seeking more information on Tesla's CapEx plans and Model 3 rollout) whose assault prompted Musk's erratic behavior that led to a plunge in Tesla stock on Thursday, one Musk may have instigated himself after telling "daytraders" who can't take the volatility to sell Tesla stock.

In his first overnight tweet, in what would soon become a tweetstorm worthy of Donald Trump, Musk "explained" that he had cut off the sellside analysts because, get this, they were "trying to justify their Tesla short thesis" (both have Tesla as a Hold).

The “dry” questions were not asked by investors, but rather by two sell-side analysts who were trying to justify their Tesla short thesis. They are actually on the *opposite* side of investors. HyperChange represented actual investors, so I switched to them.

Musk then doubled down in a later tweet saying "The 2 questioners I ignored on the Q1 call are sell-side analysts who represent a short seller thesis, not investors"

Then, even more bizarrely, in the very next two tweets Musk contradicted himself, saying the analysts were cut off not because "they represent a shot seller thesis", but because they were too lazy to read the company's press release, or "boneheaded" not to believe that a company which has delayed production targets every quarter for the past year, will be able to hits it ambitious goals.

At this point it is worth pointing out that there is no way Musk does not know that sellside research is fundamentally useless - that's why the buyside does its own research - and only exists to facilitate meetings between asset managers and company management (which leads us to assume that there certainly isn't a line of people waiting to speak to Elon). As such, taking the analysts' questions as personally as he did merely indicates that there is something very troubling with Musk's otherwise impeccably rational thought process.

Going back to Musk's tweets, for a second it almost appeared that Elon's bizarre, childish tantrum may finally be ending when in response to a question on twitter, Musk admitted that "I should have answered their questions live. It was foolish of me to ignore them."

The fact that it took Musk 48 hours to grasp this is by far the biggest red flag about Elon's fragile state of mind. Had Musk simply left it at that, the whole bizarre episode may have been on its way to being forgotten, attributed to Musk's occasionally infantile absurdities.

Only it was not meant to be... and in the very next tweet Musk took direct aim at his perceived mortal enemies, the Tesla shorts, when he threatened that the "short burn of the century [is] comin soon. Flamethrowers should arrive just in time."

At this point, just after 6am PT, the hyperventilating Tony Stark decided to finally go to bed.

Unfortunately, any hopes the much needed sleep would have helped him see things more clearly were dashed when after waking up several hours later, Musk appears to have read an article that made him go apeshit.

The article in question was from Barrons, and pointed out that despite "his tweet storm in which he defended his remarks and hit out against short sellers", or perhaps due to, Tesla short interest just hit an all time high:

Short interest in the stock increased by nearly 400,000 shares on May 3, the day after the report, bringing the total to more than 40 million shares for the first time in Tesla’s history, notes S3 Partners’ Ihor Dusaniwsky. Moreover, despite Musk’s remarks today and the stocks’ gain, shorts rose by half a million shares Friday.

Adding insult to injury, author Teresa Rivas touched on a very sensitive topic for Musk - supply vs demand - pointing out that there may not be any more shortable TSLA shares soon

All of which means that Tesla customers and shorts may have something in common, says Dusaniwsky: More demand than supply. Not all long shares are in stock-lending programs, and given the high short interest at the moment, that leaves just 6.5 million shares for expanded short positions.

At this point, Musk, who over the past 72 hours has sounded like he is having an acute psychotic episode or merely a mental breakdown, again took to twitter and in his best Trump impression, let his fingers do the talking before his brain could stop them, and sent out another "message" to the record shorts, this time even more cryptic than before, saying "Looks like sooner than expected" and while it wasn't clear what he was referring to, the context made it clear that this was a continuation of his previous tweet about the "burn of the century" headed for the shorts.

He then clarified his hyperbolic threat: "The sheer magnitude of short carnage will be unreal." and concluded with some friendly advice: "If you’re short, I suggest tiptoeing quietly to the exit …"

And then, in response to a Twitter remark which may or may not have been sarcastic, "You seem very concerned by shorts these days... That is very kind" Musk pulled out the noble humanitarian card, saying he just wants to help the shorts:

With that, Musk's tweetstorm has - for now - concluded, although we doubt it has ended, because unlike Trump, Musk actually does respond to taunts and provocations on Twitter, and after this particular threat, the CEO of the company that just burned another $1 billion in three months will be bombarded with both.

And while it still remains to be determined who will be the winner in the end of this increasingly surreal, absurd saga - Musk or his mortal enemies, the shorts - one thing is clear: things have certainly changed from the simpler days of "Stormy weather in Shortville ..."

Comments

A Sentinel Klassenfeind Sat, 05/05/2018 - 06:30 Permalink

Tesla’s problem is obvious:

Musk has an increasing excess of dopamine flowing into the spaces between his already substandard cns neurons.

The solution in these cases tends to involve high dose atypical antipsychotics therapy, and agents like lithium, as well as antiseisure meds (for example depakote) and if you need a jumpstart, some moderate dose haldoperidol (because it can react poorly with lithium by mutually over-potentiating one another).

If that doesn’t improve Tesla’s “hold theories” then I would recommend high dose intra-nasal cocaine and probably IV amphetamine salts together with AT LEAST 1000 cc Pinch Scotch Whisky per hour.

In reply to by Klassenfeind

philipat Chris2 Sat, 05/05/2018 - 02:09 Permalink

Ford is pretty soon going to have enough problems of its own as financing runs out and in view of its decision to "focus" on trucks and SUV's at a time when gas prices will already peak due to $70 oil. Reminiscent of GM just before it went BK and Obuttboy bailout? It doesn't need more problems by buying POS Tesla. Tesla is toast, just look at its GAAP financials.

In reply to by Chris2

mkkby philipat Sat, 05/05/2018 - 04:09 Permalink

When there is a crisis, what do they ALWAYS DO?  First they blame the shorts, then they ban them.

Elon is following the desperation script to a tee.  I'd say they're heading for a crisis in 2 quarters -- raise more money or close the doors.

For all the libtard millenials that bought an over priced golf cart, better short your car fast.  When the company dies you won't have a warranty, parts or service.  The resale value will be very low.

In reply to by philipat

ImGumbydmmt philipat Sat, 05/05/2018 - 09:20 Permalink

Both our Dodge Ram eco Diesel full size trucks get observed 32.5 mpg while matching the Hemi Gas V8's 400 ftlbs of torque,  in huge a crew cab 4x4, and the chassis is much more low brow tech compared to Ford's Aluminum chassis.

Once Ford combines its advanced Chassis with a euro spec economy minded turbo diesel we may have an honest 35 mpg full size 4x4 platform for trucks and SUVs. 

I see how much nicer fit and finish quality is to the  Ford F Series, especially in platinum compared to our company Ram trucks and we rented a Silverado, and it was just goofy mix of some nice features and some real  hold over GM crap features.

Ford is just a small reliable diesel away from market dominace.

The Toyota Tundra is really nice as well, so thats the biggest threat.

Nissan is above Chevy in truck quality, sad to say. we were a Chevy family back in antiquity..... times change

 

 

In reply to by philipat

not dead yet Chris2 Sat, 05/05/2018 - 03:57 Permalink

At Tesla's current valuation no one is going to buy Tesla. Not even at half. Not to mention the huge debt load. Even if they were stupid enough too the cult of Musk and Tesla would evaporate and the buyer and Tesla would be in bankruptcy before the ink was dry on the buyout. Years ago when one company was going to get out of the computer business and concentrate on their other product lines Michael Dell was asked by the pundits if he was going to buy the business. His reply was "Why should I. I'm going to get their business anyway." Tesla has nothing to offer that the other auto companies don't already have or can purchase from outside suppliers. The only jewel Tesla might have is the battery factory and you can bet Panasonic will end up with it when the SHTF as it's doubtful they invested their hundreds of millions without having paperwork protecting their investment. Plus battery plants are going up all over the world, plus the many established ones, so why would they want Tesla's and all the debt that goes with it if Panasonic passes. Idiots claim Tesla is really a tech company that makes cars and their tech will bring great riches and revolutionize the world. Tesla has no tech of it's own, it's all hype. The mainstream car companies are the ones that are high tech, not every job can be done better by robots so they employ humans too, and it's Tesla still in the stone age trying to catch up.

In reply to by Chris2

MoreSun MillionDollarButter Sat, 05/05/2018 - 01:27 Permalink

"Impotent rage, a.k.a. thrashing swimmer, a.k.a. blood in the water"  says the jew supremacist to those he hates! 

American citizens you have lost much, much, more than your medical insurance.

You have also lost your Republic, the jew supremacists have turned it into an marxist so-called democracy ran by the jew supremacists. You lost your borders, the jew supremacists led by zionist jew senator jacob javits shoved the 1965 immigration act down Americas throat and then he screamed "Open The Flood Gates" when the jews got it passed.

You lost your kids to the jew supremacist smut purveyors in the media and by the jew supremacists that infiltrated the entire U.S. school system many, many years ago.

You lost the sovereignty of your MONEY in 1913 with the jew supremacist creation of the so-called Federal reserve and their thug confiscation imprisonment arm the Irs.

And if you don't start standing up to the jewish elites at Aipac, Aclu, Splc, Zoa, Jwc, Jdl, Cfr, Trilateral Commission, and a thousand more jew supremacist organizations you will be another holocausted 1945 Germany. Not the faked, wholly exaggerated so-called jew holocaust- which has been unequivocally proven propagandized hokum. 

Here are the true eternal terrorist & destroyers in action: https://www.youtube.com/watch?v=4TOYLr_P6hA&t=69s

Yip you heard it here !

In reply to by MillionDollarButter