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Don’t fall in love with a stock


Time ago, as Tesla was near ATH I wrote about the two easy to fix problems of the company. Too bad they haven’t changed anything and the stock has fallen an amazing 65% since ATH.

The problems mentioned still there, but now we have others much worse:

- Focusing in the wrong countries: they continue to expand worldwide as if this was CocaCola, but they still don’t understand that even if people are willing to buy the car, nor the grid or the roads are ready.🚩

- Giving wrong solutions to un-existing problems: just yesterday Tesla posted a video about how with the latest software update you can pair “celebration mode” with other cars… this is something cad owners don’t use in a regular basis (I really doubt they have used “celebration mode” more than once) so there is really no need on losing coding hours in this.🚩

- Videos are marketing: continuing with the previous point, videos are marketing. They insist the money spent in marketing is 0 (or that is what they tell the SEC) but it is actually not. This videos cost money. 🚩

- Too old: model 3 design is over 8 years old, and since model Y is just a bigger model 3 we can say it is also over 8 years old. Model S and X are over 10 years old and even with facelifts they are way too old.🚩

- Too many recalls: over 4 million cars has been recalled… alone is USA… alone in 2022… even if this recalls are solved with a software update, they are way too many recalls.🚩

- Too unreliable: Tesla has not only faced problems in some communities such in Norway and Denmark. They have arrived at top 1 of the less reliable car brand. Even worse than Fiat, Land Rover or Alfa Romeo…🚩

- Bad quality - Company doesn’t cares: being in the “less reliable car brand” list is something they don’t care. Their only goal is to sell more, even when the demand is falling and the owners are changing their cars for another brand. The Tesla cult is only a 1-car cult. Doesn’t happens with BMW, Renault or even FIAT where families will repeat with the same brand car after car.🚩

- Demand is falling: in 2015 Chevrolet had over 8.000 Bolts unsold, not because the demand for EVs wasn’t there, but because people was waiting for the Model 3. Now is Tesla the one having too many unsold cars, as people waits for better looking, newer, and more reliable cars.🚩

- Losing money in nonsense projects: Cybertruck continue to be in the list of the ugliest car ever, and the delays continue…🚩

- Faulty software: apparently they deleted the videos of how the software will repeatedly run over crossing pedestrians. Also still unclear for how many of the deaths is the software responsible, as it disconnects just before any accident… Hurra for the first robotic law!🚩

- CEO is missing: after buying Twitter for 44b and losing over 75% of the workforce, Elon is spending so much time trying to build something no one needs, that he is forgetting about the cash cow… or is he? Because since he started talking about buying Twitter he has cashed out over 12b$ of Tesla stock…🚩

A total of 11 red flags, no longer an “easy to fix” problem that explains why the stock has fallen from it 52 weeks high of 402$ to its 52 weeks low of 155$ (today) and may continue going down towards 40$ if they don’t start reacting.

Comments made on companies showcased are an expression of opinion only, and should not be construed in any manner whatsoever as recommendation to buy or sell any financial instrument at any time.

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