Tesla CFO's Unexpected Exit: Unraveling the Mystery

author: FutureCar Staff    

Stanphyl Capital recently released their commentary for the month of August 2023, focusing on their short position in Tesla Inc (NASDAQ:TSLA).

One major news item from August was the sudden departure of Tesla's CFO, which adds to the list of unexplained departures in the company. One possible explanation for this pattern is Elon Musk's alleged dishonesty and involvement in securities fraud. It is speculated that Musk may not want CFOs who can run the books honestly, as his personal compensation depends on their results. Perhaps the latest CFO decided to resign after accumulating a significant amount of money from the company and wanting to enjoy it freely. Another possibility is that the resignation is connected to the ongoing investigations by the DOJ into a consumer fraud scandal and Musk's alleged theft of company assets for personal use. Additionally, a safety cover-up revealed in May may have contributed to the CFO's decision to quit. Regardless of the specific reasons, history has shown that individuals like Musk eventually face consequences for their actions.

In July, Tesla reported its Q2 earnings, which further highlighted the company's status as a low-margin car manufacturer. Musk hinted during the conference call that price reductions would continue, as seen in August when prices were slashed in China. Instead of discussing the report in detail, Stanphyl Capital shared a few tweets that expressed their concerns about Tesla's financial situation. They emphasized that Tesla's "energy business" accounted for only a small percentage of revenue and operated in a highly competitive, low-margin industry. They also highlighted Tesla's decision to open its charging stations to cars from other manufacturers, which could potentially result in lost auto sale profits.

Stanphyl Capital believes that Tesla has lost its competitive edge in the electric vehicle market. They cited other car manufacturers that offer comparable or better features, such as real-world range, interiors, and charging speeds. They mentioned Tesla's low rankings in reliability surveys and the increasing number of EV buyers choosing alternatives to Tesla. They also pointed out that Tesla's upcoming products, such as the Model Y and the pickup truck, will face tough competition from established players like Ford, GM, and other new entrants.

The commentary drew comparisons between Tesla and Blackberry, suggesting that Tesla is becoming obsolete in the EV market. Stanphyl Capital listed various competitors from different regions that are gaining market share and predicted that Tesla's stock price would decline significantly. They also mentioned ongoing investigations into Tesla's "Full Self Driving" claims and the potential liability for refunds if a class action lawsuit proves that customers were misled. Furthermore, they criticized Tesla's claims of proprietary battery technology and highlighted that other manufacturers could easily obtain the same technology.

In conclusion, Stanphyl Capital's commentary provides a critical perspective on Tesla's financial situation, competitive landscape, and potential legal challenges.

FutureCar Staff