PickleRick stream of conscious of why @elonmusk is off his rocker this weekend. Liquidity, accounting games, and more.
1. $TSLA real cash balance available for use like $1.5-2.5 billion
2. Suspended operations don’t undo all the accounts payable due
3. Suspended $TSLA operations don’t undo all the operating expenses Tesla needs to maintain (payroll, utilities, new parts / supplies)
4. Accounting games: we all know Tesla’s accounts receivable are...
5. ... fugazzi (h/t @davidein), with an entire Quarter elapsing at 50% sales decline, how can they show no decrease in A/R? They can’t.
6. Two factories running yet declining OpEx? Okay @SEC_Enforcement, please explain that to my Grad professor in capital allocation.
$tsla $tslaq
7. Factory shut down with that much inventory? Is that inventory real? Will it need to be written down? Let’s ask @Carvana can’t let this domino fall in their accounting games of musical chairs.
$tsla $tslaq
8. With Q2 being a dumpster fire, will they have to pull guidance? Well yes, but they won’t.
9. Finally this all ties into the fact $TSLA does not have enough cash to exist for 8 weeks while satisfying bills and debts. They need to raise imminently.
10. How can they raise after @elonmusk just kamikazed his entire reputation (like it existed before), with all the market vol and increase risk premia?
$tsla $tslaq
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