Blackheads Shorts's video: Does Hedgefund Honcho Steve Eisman Not Have A Research Department To Give Him The Facts On Tesla

Money manager Steve Eisman has a sterling reputation. He is one of the few who saw the 2008 financial collapse coming and reacted accordingly, making a lot of money for his clients. To do this, you have to know the market thoroughly and have access to a lot of information, researching large amounts of data. Now he has become interested in Tesla, but it looks like he did his research by interviews at the 19th hole. It is a place where you can get good tips from well informed people. It is also a place where fishing and hunting stories get scarier every time they are told. His Tesla knowledge is clearly based on the second type stories. Steve Eisman vented his knowledge about Tesla in an Bloomberg interview and told them that he entered into a short position on Tesla. Such is his reputation that enough speculators thought this a serious warning and the Tesla stock price fell 1.5% on this news. So, what does Eisman think he knows about Tesla? He is worried about “bad execution” by Elon Musk. You can’t get more vague in your argument. Without examples, I have no way of knowing what has alarmed him. So let’s look at the highlights of the last 2–3 years. Musk’s first big mistake was the launch of the Model 3 on 31 of March 2016. I actually wrote an article about it. The launch was way too early, more than 20 months before start of production — but there were sound marketing arguments to do it at that moment. When he announced the timeline and volumes he intended to produce, the complete industry got in a fit. Reaching a production rate of 500,000 cars (100,000 S&X and 400,000 Model 3) by the end of 2020 was completely impossible. Musk failed to listen to his much more experienced peers. The next disaster followed the days after the unveiling. The numbers of reservations kept climbing and passed 400,000. With the impossible timeline just announced, the prospective customers would have to wait up to 5 years for their cars. That was unacceptable for Musk. An accelerated timeline was devised, with start of production 6 month sooner and a goal of reaching 5,000/week 12 months sooner. Furthermore, he set a goal of reaching not 8,000 but 10,000 per week 18 months sooner. This was mind-bogglingly impossible in the minds or at least statements of many auto executives. Disaster never comes alone. Shortly after the start of production of Model 3, Puerto Rico was hit by 2 storms and the federal government failed to treat Latinos in the colonies in a satisfactory way. The immigrant leading Tesla thought these people deserved a different treatment and relocated the tech teams from solving Model 3 production bottlenecks to solving storm-devastated Puerto Rico problems. Yes, for a CEO who is accountable to Wall Street, that is completely irresponsible. In the end, the 5,000/week production rate was attained only 6 months sooner than in the impossible timeline. In other words, it is true that Tesla did not execute on its most ambitious timeline, one that was wide