Tesla is to automakers as America is to the world…a big nothing burger?

The USA is the biggest joke in the world. So now we’ve got a car company that has never made money selling cars, with a market cap greater than all the other car companies on the planet, being praised for its growth by the media, touted as a “tech” company, eligible for the S&P500? Wait a minute…did you see the part “has never made money selling cars”? So what is Tesla selling? How has it been able to show a profit over four consecutive cycles and gather up all kinds of retail investors? Selling regulatory credits (which come free from the government) to other automakers. I’m the Forrest Gump of finance, but according to other smart and credible accounting experts, Tesla’s gain from selling regulatory credits exceeded the net, pretax and operating income, AND free cash flow for Q2. For this reason, the media has gone bananas proclaiming Tesla as “the most valuable car company in the world”… Am I missing something here? Or has everyone gone mad?

Fact is, Tesla is slashing prices everywhere to create demand and they only produce half of one percent of cars. More production is better, not because Tesla can make a business out of selling cars, but because Tesla can make a business out of selling “regulatory credits” BKA free stimulus money it gets from the government for every car it produces. Of course anyone can sell $1 bills for .75 cents… the problem is Americans have invested in what they want to be “the future” regardless of what’s working in the present, because money and credit is free and forever, infinite and eternal… we are so great that we can print and borrow to eternity and never pay it back. Just cancel all the loans and handouts, they say. But lenders and borrowers are supposed to work together using a limited supply of currency backed by “real” assets. That’s what creates a great economy. Cancelling debt is analogous to cancelling all males in society, which would cancel reproduction and the human race. Seriously!

Someday, someone or many someones are going to pay for the borrowed money, and it may be sooner than you think, because every dollar borrowed is a dollar that’s lent to sell something for less than $1. Business has nothing to do with earning profits on real goods and services anymore; it is driven by politics, special interests, and debt. If the world were a marketplace, America would be the junkiest of the junk bonds. What do Tesla and America have in common? Tesla and America are both selling ideas that keep a bunch of paper billionaires rich and dishonest people in power. Trump said that Elon is a great genius, and that we have to protect our geniuses. What he really meant was that we have to protect our politicians, agendas, and billionaires… but the free marketplace is supposed to take care of businesses, not government. In a real economy, cancelling debt is equivalent to cancelling production. If we don’t produce, we have fewer and fewer supply, and more and more currency chasing real assets. What many people don’t understand is that propping up unprofitable businesses keeps new natural and potentially successful business ideas from being born… the equivalent of economic abortion (and eventually genocide). It also encourages economic inefficiency and wealth inequality.

Whether Elon is a genius or not is debatable, but it’s despicable that he has been able to hide behind terms like “deliveries” which didn’t exist before America forgot about profits. He doesn’t have to explain what deliveries consist of (although it may be channel stuffing), and could be hiding fraud. It is despicable that Elon Musk has become one of the richest men in the world, during a global pandemic, selling regulatory credits that he gets free from the government. This is all so wrong, and it’s going to end badly. Yes, America is going to end very badly, sadly, and because nobody sees anything remotely wrong with any of what’s going on, there’s nothing we can do but watch it burn, and try to be as ready as we can. I, a peon, can write a post like this, but few people will read it because corrupt media, social media, and censoring make it impossible to find the right minds. Free market capitalism is dead, nothing big on their agenda is allowed to fail, and it’s a very dangerous game when an empire’s government plays and pretends to be God. It always ends badly. There will be no exception here.


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