Friday, 17 August 2018 18:52

FCA Should suspend Tesla’s Authorisation

We have long been a critic of the Tesla brand and Elon Musk. It’s a company that operates like a pyramid scheme with its foundations built on PR, rumours, and gimmicks. In our opinion, Tesla is the biggest fraud in human history. We call for the FCA to step in and protect consumers because this is going belly up very soon.

We don’t think Musk is a bad guy, he’s just got caught up in his own hype, cheered on by ‘Do-Gooders’ and the left leaning press until he ultimately forgot where the truth was. Now reality is beginning to hit home, he’s panicking. This is obvious from the way he conducts himself on social media.

Tesla’s can trace its beginning back to virtue signaling politicians who threw taxpayers cash into the wind. There is something very familiar about all this. These individuals included people like President Obama. Tesla should have failed years ago, crushed for its lack of commercial reality. Zero per cent interest rates on loans allowed investors to minimise their risks on stock and more taxpayers cash in the form of grants kept it afloat. More tax payers cash flowed in because it would have been very embarrassing for Obama and others around him if Tesla went under, in a way it wasn't too big to fail but it was too embarrassing to fail.

Ever since Obama left office, Musk (CEO) has become ever more erratic. Coming up with new crazy PR stories that the media and many journalists continue to swallow without question. To the rest of us, it is a sign that a collapse was just around the corner. A lot of debt needs to be rapid in early 2019.

Now if Tesla’s financial position is about to fall off of a cliff (which it almost certainly is), it will take a lot of customer deposits with it. These deposits would have come from customers who have paid substantial monies up front for delivery of their vehicles. Vehicles which now look like they are increasingly unlikely to ever be delivered.

There have been reports that customers who have been left disappointed by missed delivery dates have failed in their attempts to have their deposits returned.

In these cases, customer’s money will probably be lost in full. With car deposits, because of the credit card charges it is uncommon for them to be paid on a credit card. We think that the likely fall out for lost deposits could be significant.

We would urge the FCA to investigate what contingencies Tesla have in place, and if it is still wise for them to be taking customers deposits. In our view, Tesla has obviously passed the stage of insolvency. This FCA does not have a duty to protect shareholders and how people want to invest their money, but it does have a duty to the people who are leaving deposits with a company that could be out of business by the end of the month. If not by the end of August 2018, it will almost certainly be a mere memory come to the end of 2018.

There wouldn't be any harm in the FCA taking a quite look. There is no need to make their investigation public. If its finding are that action should be taken then it can do so after that. If all is well then nobody need know and Tesla wouldn't be affected. 

To anyone thinking of buying a Tesla car at the moment, you need to think twice are told that you need to pay that deposit in cash.

1 comment

  • Comment Link Friday, 07 September 2018 13:48 posted by Anonymous

    I've never been a fan of Musk and his antics, in all fairness i don't think anybody has or is, but i think he's gone past the point of likeability now, i think the issue is far more serious. He's mentally unstable and the future of Tesla is certainly bleak while he is at the helm. As for the FCA looking into dealings at chance! Too much like hard work for them. I wholeheartedly agree that if there is a possibility that the company could go bust them potential customers need warning of this danger and the FCA should do what's right and protect the people but i honestly can't see it happening. The FCA like to target small fry and claim they're doing their job brilliantly. They don't have the guts to go for Tesla.

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