Jim Chanos to @Reuters regarding Tesla's liquidity and credit strength: "Tesla’s quick ratio dropped to 0.38 and their (Altman) z-score is approaching 1.0. Both are indicative of a company in financial distress.” @Reuters @ReutersBiz @elonmusk
— Jennifer Ablan (@jennablan) May 3, 2018
“In subsequent tests over 31 years up until 1999, the model was found to be 80-90% accurate in predicting bankruptcy one year prior to the event.”
Cash balances in the final quarter before bankruptcy:
Enron – $1.0B
GM – $14.0B
Worldcom – $1.4B
$TSLA has $2.7B in cash and burned $1.1B in Q1
Elon Musk hung up on NTSB chief during call about Tesla crash probe
Just weeks before Elon Musk held his fractious conference call with Wall Street analysts, he hung up on Washington’s top transportation accident investigator.
Robert Sumwalt, the chairman of the National Transportation Safety Board, called the feisty builder of new-age cars and rockets on April 11 to tell him that blog posts by Tesla Inc. casting blame on the driver of a Model X for a fatal crash had gone too far. The NTSB had earlier warned Tesla not to make statements about the accident while it was being investigated by the board.
Sumwalt then said he was taking the unusual step of kicking the company’s representatives off the investigation.
“Best I remember, he hung up on us,” Sumwalt told attendees of the International Society of Air Safety Investigators’ Mid-Atlantic Regional Chapter dinner Thursday. It was his first public comments on the exchange.
Tesla starts brutal review of contractors, firing everyone Monday that is not vouched for by an employee
Watch Enron Smartest guys in the room (you probably have)
The similarities between Enron/Skilling/Lay and Tesla/Musk are almost frightening.
To highlight some similarities
Sounds like Enrons “Blockbuster deal” where it was announced to investors but without a working prototype and never worked, but booked billions in profit.
Sounds like Enrons Rank and Fire, where Enron rated employees every 6 months top 5%, 30%, 30%,20% and 15% and two periods in the bottom 15% would mean firing.
Enrons near catastrophic abandonment of top “lieutenants” seeing the writing on the wall and abandoning before it’s over.