PRE MARKET AND TESLA

Futures are down decently after an ugly reaction to the maniacal Fed. Remember, every time markets go lower, internals go south…and you do not want to see internals go south as indices are again heading towards vital long-term support. You know what we think can possibly happen if that occurs. Watch them FINANCIALS closely. They break and yikes!

TESLA…we have stated for a long time that if TESLA was selling steel pipes, the stock would be 50-75% lower. Some facts:

TESLA has never made money on a yearly basis.

TESLA has done 3 secondaries in recent years.

TESLA lost $1.7 billion in the past 4 quarters.

TESLA has missed targets.

TESLA bonds have sold off. We were amazed when they were able to float bonds at 5.3%. Should have been 8%. The bond’s ratings have been downgraded.

According to our abacus, TESLA has 40 million shares short.

At the close yesterday, TESLA market cap was the same as GM even though GM does 12x the sales of TESLA.

TESLA will need to raise more capital.

TESLA’s head honcho, top dog, big cheese would not answer some of the analyst’s questions on the earning’s call yesterday.