Just a day after Tesla reported a $408 million loss, more cash burn, and ridiculous delivery estimates, Elon Musk demonstrated once and for all why he either should leave or sell Tesla.
The last straw? He announced an outside investment of $120 million in his Boring Company.
Why is Elon Musk using Tesla shareholder time on The Boring Company and SpaceX? And why aren’t those shareholders complaining?
Even worse, guess where that $120 million partially came from? Steve Jurvetson, who has a seat on the boards of Tesla and SpaceX! Why is he funding another project when the first two still have a long way to go, and Tesla is burning cash hand over fist?
But get this – SpaceX provided funds for The Boring Company’s first test tunnel. What is going on here? Is there any oversight at these companies other than Elon Musk himself?
Yet all this money is being thrown at The Boring Company while it thus far hasn’t produced anything of value.
Two 18-mile tunnels between Chicago’s two airports? Not approved and the mayor hates it.
High-speed tunnel to relieve traffic in Los Angeles? Killed.
High-speed tunnel between Washington and Baltimore. Not going to happen.
Underground hyperloop to connect Washington and New York? Never happened and it’s a nutty fantasy to think it ever could.
The only apparent real project for The Boring Company is a $50 million contract to construct and operate a “people mover” underground in the Las Vegas Convention Center. That’s like landing a contract to build an escalator in an airport. Big deal.
The Boring Company is just another Elon Musk snake-oil scam, as he pretends to be a modern-day P.T. Barnum, and spreads his attention across multiple high-profile projects that fail to deliver.
Why are Tesla shareholders permitting Musk to engage in outside activities when workers are still suffering under sweatshop-like manufacturing conditions, holding Tesla cars together with electrical tape, and watching Tesla vehicles explode for no reason?
The CEO of a company should spend 100 percent of his time at that company. Tesla is losing money every quarter and will burn through its $5 billion in borrowed cash in about a year.
The only hole Elon Musk is boring is the one in investor wallets.
Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.
Last modified: January 10, 2020 3:35 PM