Transcript:

A leopard never changes his spots. Neither will Elon Musk.

For all its buzz, Tesla has under delivered. Musk has offered only thinly veiled attempts to bolster investor confidence or throw off naysayers. His company is burning through cash and failing to meet production goals.

With Tesla reporting what are likely to be downbeat third quarter financials Wednesday, overly optimistic Tesla bulls are the dumbest thing on Wall Street this week.

Let's talk cash burn: According to FactSet analysts, Tesla is on track to record negative free cash flow to the tune of $1.025 billion in the third quarter, suggesting its cash flow problem will deepen sequentially. Beyond that, Tesla hasn't offered any sense of what it's doing to solve the issue.

And the Model 3. All hype, no follow through. As one source I spoke to put it, for all the amazing things Tesla can do, can it really not make a car on time? The company has whiffed on production and shipment expectations again and again. If the bulls think that's going to stop anytime soon, they're probably wrong.

So here's my message to Tesla. The early believers who got you on your feet are going to start losing patience if you can't deliver, and deliver soon. The bottlenecks in production, the rampant capital exhaustion and the blowing of smoke can't go on forever.

We're getting close to now or never, Mr. Musk. If you don't get with it soon, Tesla bulls will continue to be the dumbest on Wall Street.

 

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