L2inc.com video above re-published Jun 15, 2018: Scott Galloway's take on Elon Musk's $3.5B tantrum and what it means for Tesla’s shareholders, plus Recode.net's Kara Swisher weighs in.
Tesla, Inc. is a US-based multinational corporation that specializes in electric vehicles, energy storage and solar panel manufacturing, headquarters are in Palo Alto, California.
- Principal domain: tesla.com
- Stock price: NASDAQ: TSLA $357.72 +12.94 (+3.75%) close June 14, 2018
- Founded: July 2003, San Carlos, CA
- CEO: Elon Musk
Sources referenced in the video:
(00:18) Source: “Tesla’s Elon Musk Mocks Analysts During Conference Call,” Fox Business, May 2018. https://bit.ly/2ybgQGr
(01:03) Source: Clip from “Enron: The Smartest Guys in the Room,” 2005. https://imdb.to/2JCAxMS
(01:19) Source: Yahoo Finance.
(01:46) Source: Courtesy of Jim Chanos. https://bit.ly/2yaySZr
(03:08) Source: Yahoo Finance.
(03:30) Source: Yahoo Finance.
Auto-generated transcript from June 14 edition (unedited):
00:00 [Music]
00:01 what's a signal that a company may
00:03 struggle over the next year look at the
00:05 behavior of the CEO case in point
00:08 Tesla you can hear an Elon Musk voice
00:10 and in his recent behavior that he's
00:13 under a great deal of pressure and that
00:15 is about to get real and so where
00:18 specifically will you be in terms of
00:21 your next boring bonehead questions are
00:27 not cool
00:27 next what how what percentage have
00:30 actually taken steps to configure we're
00:36 gonna go to YouTube
00:38 sorry these questions are so dry they're
00:44 killing me when you're CEO it's your job
00:47 to answer stupid questions especially
00:49 questions from the investors who've
00:51 allowed you to raise money at four times
00:53 revenues versus less than 0.45 times
00:56 revenues for peers including General
00:59 Motors this is reminiscent of the days
01:01 of Enron you're the only financial
01:04 institution that can't produce a balance
01:06 sheet or a cash flow State know what
01:07 their earnings thank you very much we
01:14 appreciate mr. must high rate took the
01:19 company down seven percent translating
01:21 and doing in maturity tax that cost
01:23 shareholders three and a half billion
01:25 dollars there's no doubt mr. musk has
01:27 clearly under tremendous stress and the
01:29 board is not doing their job that
01:31 rejected two proposals to change board
01:33 leadership including one that would have
01:35 removed must from the chairmen position
01:37 and split it into two positions CEO and
01:39 chairman what they need to do is tell
01:41 them that it sucks to be a grown up must
01:44 behavior coupled with 40 significant
01:46 departures from the company recently are
01:48 all negative for looking indicators
01:51 however we could be wrong as Kara
01:52 Swisher highlighted in our interview
01:54 yesterday it's not that he's coming off
01:57 the rails it's just that he's sick of
01:59 doing very ambitious things and getting
02:00 70 or 80 percent of the way there and
02:02 then getting heckling from the cheap
02:04 seats he's landing a rocket on like a
02:08 platform in the middle of the ocean this
02:09 is not easy stuff he's making a car like
02:12 he's trying to change
02:13 rotation and whatever you think of him
02:16 these are big things big things and so
02:19 if you get 70% of the way there
02:21 yeah what some of the press does and me
02:23 too is say what happened to that 30%
02:26 ignoring the fact that he got 70% of the
02:28 way there I think even if he doesn't
02:29 succeed at it what he's doing is
02:31 important no he's gonna change the world
02:33 that's what we're moving to is the only
02:35 reason I give him just a little more
02:37 like over some dumb stupid photo app
02:39 that people argue over Tesla has an
02:42 amazing product I actually own a Tesla
02:45 not because I'm environmentally
02:46 conscious when you drive at us on the
02:47 East Coast you're spewing more carbon
02:49 into the air because it's not powered by
02:50 electricity it's powered by the coal
02:52 that produces electricity I bought it
02:54 because I want to signal to the world
02:55 that I am hippy granola and rich ie have
02:58 sex with me anyways the company lacks
03:01 the frictionless networking effects of a
03:03 Google or Facebook and doesn't have the
03:05 Hermes like margins of an Apple yet it's
03:07 trading at evaluation reflective of a
03:09 firm that can scale like a Facebook or
03:11 generate the profits of an apple by the
03:14 end of the year Tesla analysts will
03:16 begin wringing their hands over
03:17 liquidity concerns in dilution we
03:20 predicted the stock would fall for these
03:21 reasons however the stock rallied after
03:24 the board meeting on Wednesday as the
03:25 shareholder resolution to separate the
03:27 CEO and chairman roles was voted down
03:29 this was taken as an endorsement of
03:31 Musk's leadership and the stock
03:34 skyrocketed so so far we're wrong so far
03:39 we'll see you next week
03:41 [Music]
https://youtu.be/616-QGQyx-I
feedback & comments via twitter @DomainMondo
Follow @DomainMondo
DISCLAIMER
