Elon Musk is a securities fraud-committing pathological liar: Shortseller

Excerpted from Stanphyl Capital’s October letter to traders on the part specializing in the hedge fund’s Tesla Inc. (NASDAQ:TSLA) brief.

See extra unique hedge fund shorts (and longs) right here.

And now for the first reason for this month’s terrible efficiency, Tesla Inc (NASDAQ:TSLA)…

Tesla reported Q3 earnings in October and—precisely as we anticipated—income for this alleged “growth company” was a whole bunch of tens of millions of dollars decrease than the year-ago quarter (U.S. income was down 39%!) additionally down vs. the earlier quarter, but sequential profitability unexpectedly flipped from a $408 million GAAP loss in Q2 2019 to a $153 million Q3 revenue (vs. our expectation of a $300 million loss).

Automobile producers don’t do that and not using a large variety of one-time gadgets/tips and this isn’t indicative of sustainable efficiency. Bear in mind: between Q3 and This autumn of final yr Tesla averaged even increased profitability, then slid again into large losses. (And even when this have been indicative of future profitability, automotive producers promote for round 8x earnings; annualizing this .80/share to $Three.20 would make Tesla [now just another slow/no-growth automaker] price simply $25.60/share even earlier than contemplating its terrible steadiness sheet.)

As to the particular monetary video games performed in Q3, of the $143 million “profit,” $80 million got here from overseas trade good points, roughly $55 million from decreased guarantee provisioning/accruals, $100 million reportedly from one-time rebates from suppliers promised future quantity for Mannequin Three components used on the

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Mannequin Y, and $51 million from “burning the furniture to heat the house” by way of an enormous discount in SG&A regardless of having 97,000 extra vehicles on the street, thereby leading to interminable, reputation-destroying customer support wait instances. , $134 million of the “profit” got here from regulatory credit score gross sales that can disappear roughly two years from now once they’re not wanted by different auto producers; i.e., they don’t advantage an earnings a number of. Accounting for these non-repeatable (or unsustainable) gadgets, Tesla’s alleged revenue flips to a big loss, and these are solely the one-time gadgets of which we’re conscious.

Tesla additionally claimed $371 million in Q3 free money circulate, however internet payables minus receivables have been up $365 million (in 1 / 4 wherein Tesla claimed bills DECLINED throughout the board!) vs. a listing acquire of simply $199 million, and capex was underspent by $225 million vs. the midpoint of steering. Adjusted for this stuff free money circulate too was damaging, and going ahead capex should soar for Tesla to satisfy its obligations in China (the place it should spend an extra $1.5 billion throughout the subsequent 20 months) and to buy Mannequin Y tooling.

In reality we might even see an identical low degree of short-term Tesla profitability in This autumn (the one we’re in now) or

Q1 of 2020, when in a single or (divided between) each of these quarters Tesla acknowledges roughly $500 million of non-cash (it’s already on the steadiness sheet) deferred income from its fraudulently named “Full Self-Driving” (the capabilities of which supply nothing of the type). By rolling out numerous ineffective and harmful options of this homicidal software program suite, might declare that prior consumers of this nonsense acquired what they paid for, and can thus run these non-cash earnings by way of its monetary assertion, thereby once more maybe offering this money-losing firm with a fleeting second of minor profitability. As with Q3, these will probably be non-repeatable one-time good points (or, if you happen to desire, “games”), and later in 2020 the losses will resume.

We thus stay brief inventory and name choices in Tesla, which I nonetheless think about to be the largest single inventory bubble on this complete bubble market. The core factors of our Tesla brief thesis are:

Tesla has no “moat” of any sort; i.e., nothing meaningfully proprietary when it comes to electrical automotive know-how, whereas present automakers—in contrast to Tesla—have a decades-long “experience moat” of understanding the best way to mass-produce, distribute and repair high-quality vehicles constantly and profitably, in addition to the flexibility to subsidize losses on electrical vehicles with earnings from their standard vehicles.

By mid-to-late 2020 Tesla (which has an terrible steadiness sheet) will return to dropping cash.

Tesla is now a “busted growth story”; unit demand for its vehicles is barely being maintained by way of continuous value reductions and expiring tax incentives.

Elon Musk is a securities fraud-committing pathological liar.

As famous earlier, Q3 2019 U.S. Tesla income was down 39% (!) vs. Q3 2018 and the corporate is barely exhibiting unit supply progress (with declining income) by slashing costs and fulfilling Mannequin Three backlog in nations the place deliveries simply started (most notably the UK in Q3 and South Korea in This autumn), and the place EV

incentives are about to run out (the Netherlands till year-end). In different phrases, the Tesla “hypergrowth” story is over.

For these of you in search of a resumption of progress from Tesla’s upcoming Mannequin Y, when it’s out there in Q2 2020 it would each massively cannibalize gross sales of the Mannequin Three sedan and (by late 2020) face superior competitors from the a lot nicer electrical Audi This autumn e-tron, BMW iX3, Mercedes EQB, Volvo XC40 and Volkswagen ID Crozz, cheaper and out there now are the superb new all-electric Hyundai Kona and Kia Niro, extraordinarily nicely reviewed small crossovers with an EPA vary of 258 miles for the Hyundai and 238 miles for the Kia, at costs of underneath $30,000 inclusive of the $7500 U.S. tax credit score.

In the meantime, the Mannequin Three sedan may have terrific direct “sedan competition” in 2020 from Volvo’s lovely new Polestar 2, BMW i4 and the premium model of Volkswagen’s ID.Three.

And if you happen to assume China is the key to the resumption of Tesla’s progress, let’s put that market in perspective: Tesla presently sells round 30,000 Mannequin 3s a yr there and “the story” is that avoiding the 15% tariff and 10% VAT will permit it to promote much more. Nevertheless, the rule of thumb for the elasticity of auto pricing is that each 1% value minimize ends in a gross sales improve of 1% to 2.four%. If we assume a 2.4x “elasticity multiplier,” domestically produced Mannequin 3s which might be 25% cheaper would end in annual gross sales of 48,000 Mannequin 3s (25% x 2.four = 60% greater than the present 30,000), that means Tesla’s new Chinese language manufacturing unit can be a large money-loser as it could be operating at lower than 1/Three of its preliminary 150,000-unit annual capability. Maybe realizing this, Tesla is initially mandating the acquisition of Autopilot, and thus Chinese language-made Mannequin Three will solely be barely cheaper than earlier variations. Though that can considerably enhance per-car profitability and maybe make the manufacturing unit marginally worthwhile, it would assure vastly missed progress targets and it’s “growth” (or extra precisely, the fantasy of progress) that drives Tesla’s inventory value. And good luck with rising at any worthwhile value— right here’s an awesome overview of what a dogfight the Chinese language EV market has turn into.

In the meantime, gross sales of Tesla’s highest-margin vehicles (the Fashions S&X) are down by over 30% worldwide this yr, due to cannibalization from the Mannequin Three and the just lately launched Audi e-tron and Jaguar I- Tempo, this gross sales drop is earlier than this winter’s arrival of the Mercedes EQC and completely spectacular Porsche Taycan, a number of extra electrical Audis, Mercedes and Porsches to comply with, many at beginning costs significantly beneath these of the high-end Teslas. (See the hyperlinks beneath for extra particulars.)

In the meantime, Tesla has essentially the most government departures I’ve ever seen from any firm; right here’s the astounding full record of escapees. These individuals aren’t leaving as a result of issues are going nice (and even passably) at Tesla; slightly, they’re doubtless leaving as a result of Musk is both an outright criminal or the world’s largest jerk to work for (or each). May the enterprise (if not the inventory value) be saved in its current kind if he left? Nope, it’s too late. Even when Musk steps down in favor of somebody who is aware of what he’s doing, rising aggressive components (outlined in nice element beneath) and Tesla’s steadiness sheet and large extra liabilities make the corporate too late to “fix” with out main monetary and operational restructuring.

In Might Shopper Reviews utterly eviscerated the security of Tesla’s so-called “Autopilot” system; the truth is, Teslas have way more professional rata (i.e., relative to the quantity offered) lethal incidents than different comparable new luxurious vehicles; right here’s a hyperlink to these which were made public. In the meantime Shopper Report’s annual auto reliability survey ranks Tesla 27th out of 28 manufacturers and the variety of lawsuits of every type towards the corporate continues to escalate– there are actually over 700 together with one proving blatant fraud by Musk within the SolarCity buyout (if you wish to be actually entertained, learn his deposition!), an actual magnificence from Wal-Mart which was a sufferer of a secret Tesla cover-up of photo voltaic roof fires, an allegation that unsafe door handles prompted a Tesla driver to burn to loss of life in his automotive and proof that the corporate secretly rolled again battery efficiency with out compensating house owners.

So right here is Tesla’s competitors in vehicles (be aware: these hyperlinks are often up to date)…

Porsche Taycan

Porsche Taycan Cross Turismo

Porsche Macan EV to get Taycan platform and tech Audi e-tron: Electrical Has Gone Audi

Audi e-tron Sportback comes early 2020

AUDI E-TRON GT FIRST DRIVE: LOOK OUT, TESLA (out there 2020) Audi’s This autumn e-tron previews entry-level EV for 2021

Audi e-tron compact hatch to steer model’s electrification plans

Audi TT set to morph into all-electric crossover

THE AWARD-WINNING ALL-ELECTRIC JAGUAR I-PACE Jaguar Land Rover readies electrical XJ and Vary Rover Mercedes EQC Electrical SUV Accessible Late 2019

Mercedes EQV Electrical Minivan Revealed – Accessible Early 2020 Mercedes EQB Small SUV to spice up model’s electrical line-up

Mercedes EQS will probably be constructed along with the S-Class on a brand new devoted electrical platform Mercedes to launch greater than 10 all-electric fashions by 2022

Volvo Polestar 2 Arrives early 2020

Volvo XC40 Recharge, a 408-HP Electrical SUV is available in 2020 Volvo XC-90 EV coming in 2022

Volkswagen unveils the ID.Three, its first ‘electric car for the masses’

VW’s EV crossover for U.S. will probably be known as ID4

VW Group to launch 70 pure electrical vehicles over the following decade 258-Mile Hyundai Kona electrical is out there now for underneath $40,000 239-Mile Kia Niro EV is Accessible Now For Beneath $40,000

Kia Soul (out there mid-2019) EV’s Vary Jumps to 243 Miles

Kia Europe to have six pure electrical fashions by 2022 Chevrolet Bolt Now Affords 259 Miles of Vary

GM is remodeling Cadillac into an electrical model Ford, GM rev up electrical pickup vehicles to go off Tesla

Ford efficiency EV crossover comes 2020, electrical F-150 2021, 2 midsize EV crossovers 2022 Ford to construct two European EVs primarily based on VW’s MEB platform

Nissan LEAF e+ with 226-mile vary is out there now

Nissan Ariya Electrical SUV Idea Is Destined for Manufacturing

BMW 1 Sequence Electrical Coming As Early As 2021 BMW iX3 electrical crossover goes on sale in 2020

New BMW i4: contemporary photographs reveal electrical saloon’s design

BMW’s 2021 iNEXT Returns In New Teasers Displaying Prototypes Manufacturing Rivian electrical pickup truck- funded by Amazon, Ford, Cox & others- is on the way in which Renault upgrades Zoe electrical automotive as competitors intensifies

Peugeot 208 to impress Europe’s small-car market Peugeot to supply EV model of recent 2008 small crossover Electrical Mini Arrives 2020

Toyota and Subaru Conform to Collectively Develop BEV-dedicated Platform and BEV SUV Mazda extends MX identify to new MX-30 electrical crossover

SEAT will launch 6 electrical and hybrid fashions and develop a brand new platform for electrical autos Opel sees electrical Corsa as key EV entry

Opel/Vauxhall will launch electrical SUV and van in 2020 Skoda accepting deposits for electrical vehicles

New Citroen C4 Cactus to be first electrified Citroen in 2020 FCA to speculate $788M to construct new 500 EV in Italy

Maserati to launch electrical sports activities automotive

Bentley Will Supply Hybrid Variations of Each Automobile It Makes and Add an EV by 2025 Lucid Motors closes $1 billion cope with Saudi Arabia to fund electrical automotive manufacturing Meet the Canoo, a Subscription-Solely EV Pod Coming in 2021

Two new electrical vehicles from Mahindra in India by 2019; International Tesla rival e-car quickly Former Saab manufacturing unit will get new life constructing solar-powered Sono Sion electrical vehicles

And in China…

VW ramps up China electrical automotive factories, taking purpose at Tesla SAIC Volkswagen to roll out Three MEB-based EV fashions in 2020/2021

JAC-Volkswagen Launch SOL E20X, The first EV from the Joint Enterprise Audi Q2L e-tron debuts at Auto Shanghai

Audi will construct This autumn e-tron in China

FAW-Volkswagen’s Foshan plant stated to provide e-tron Sportback FAW Hongqi begins promoting electrical SUV with 400km vary for $32,000 FAW (Hongqi) to roll out 15 electrical fashions by 2025

China’s BYD launches six new electrified autos

Daimler & BYD launch new DENZA electrical car for the Chinese language market Denza Idea X Debuts; On Sale Early 2020

BAIC Goes Electrical, & Establishes Itself as a Drive in China’s New Vitality Car Future BAIC BJEV, Magna able to pour RMB2 bln in all-electric PV manufacturing JV

Daimler to Begin EQC Electrical SUV Manufacturing in China in 2019 Daimler and BMW to cooperate on reasonably priced electrical automotive in China Toyota, BYD will collectively develop electrical autos for China

GAC Toyota to make all-electric C-HR GAC Aion

GAC unveils new NEV offshoot dubbed HYCAN

Chevrolet’s new China-only EV known as the Menlo and it seems to be good

Buick Rolls Out First Electrical Automobile for China

GM China raises new-energy car goal to 20 fashions by way of 2023 Nissan & Dongfeng to speculate $9.5 billion in China to spice up electrical autos Hyundai Motor Reworking Chongqing Manufacturing unit into Electrical Car Plant Nio

Jaguar Land Rover’s Chinese language arm invests £800m in EV manufacturing Renault reveals collection city e-SUV Ok-ZE for China

Renault & Brilliance element electrical van lineup for China Renault varieties China electrical car enterprise with JMCG

Honda Debuts New Everus VE-1 All-Electrical SUV, However Solely For China Honda to roll out over 20 electrical fashions in China by 2025

Geely launches new electrical automotive model ‘Geometry’ – will launch 10 EVs by 2025 Mazda to roll out China-only electrical autos by 2020

Xpeng Motors sells a number of EV fashions Changan New Vitality

WM Motors/Weltmeister Chery

Seres

Byton

Enovate

China’s cute Ora R1 electrical hatch provides an enormous vary for lower than US$9,000 Singulato

JAC Motors releases new product planning, together with many NEVs Seat to make purely electrical vehicles with JAC VW in China

Iconiq Motors Hozon

EV maker Bordrin skips flash, retains real-car focus Aiways

NEVS launches electric-car output with Saab 9-Three platform in China Youxia

CHJ Automotive begins to just accept orders of Main Preferrred ONE Infiniti to launch Chinese language-built EV in 2022

Zotye Auto to roll out 10 plus NEV fashions by 2020 Thunder Energy

Leapmotor

Continental, Didi signal deal on growing EVs for China Mine Mobility (Thailand)

Right here’s Tesla’s competitors in autonomous driving…

Shopper Reviews finds Tesla’s Navigate on Autopilot is way much less competent than a human driver Navigant Ranks Tesla Final Amongst Automakers & Suppliers for Automated Driving

Tesla has a self-driving technique different firms deserted years in the past Waymo and Lyft accomplice to scale self-driving robotaxi service in Phoenix Jaguar and Waymo announce an electrical, totally autonomous automotive Renault, Nissan accomplice with Waymo for self-driving autos

Fiat Chrysler companions with Aurora to develop self-driving industrial vans Hyundai and Kia Spend money on Aurora

Aptiv and Hyundai Motor Group Kind Autonomous Driving Joint Enterprise

Cadillac Tremendous Cruise Units the Normal for Fingers-Free Freeway Driving Honda Joins with Cruise and Common Motors to Construct New Autonomous Car SoftBank Imaginative and prescient Fund to Make investments $2.25 Billion in GM Cruise

Ford-VW alliance with Argo might redraw self-driving sector

VW faucets Baidu’s Apollo platform to develop self-driving vehicles in China Audi to hitch Daimler, BMW self-driving tech alliance

Daimler’s heavy vehicles begin self-driving a number of the approach

SoftBank, Toyota’s self-driving automotive enterprise provides Mazda, Suzuki, Subaru Corp, Isuzu Daihatsu Volvo, Nvidia increase autonomous driving collaboration

Continental & NVIDIA Associate to Allow Manufacturing of Synthetic Intelligence Self-Driving Vehicles Intel’s Mobileye has 2 million vehicles (VW, BMW & Nissan) on roads constructing HD maps

Nissan provides Japan model of Infiniti Q50 hands-free freeway driving

Nissan and Mobileye to generate, share, and make the most of imaginative and prescient information for crowdsourced mapping Magna joins the BMW Group, Intel and Mobileye platform as an Integrator for AVs Hyundai to start out autonomous ride-sharing service in Calif.

Uber unveils next-generation Volvo self-driving automotive

Baidu kicks off trial operation of Apollo robotaxi in Changsha Toyota to hitch Baidu’s open-source self-driving platform

Baidu, WM Motor announce strategic partnership for L3, L4 autonomous driving options Baidu plans to mass produce Stage four self-driving vehicles with BAIC by 2021

Volvo, Baidu to co-develop EVs with Stage four autonomy for China

Geely selects Volvo, Veoneer three way partnership as autonomous tech provider BMW and Tencent to develop self-driving automotive know-how collectively

BMW, NavInfo bolster partnership in HD map service for autonomous vehicles in China FAW Hongqi readies electrical SUV providing Stage four autonomous driving

Tencent, Changan Auto Announce Autonomous-Car Joint Enterprise Huawei seems to be to self-driving vehicles in bid to broaden AI focus

BYD companions with Huawei for autonomous driving

Pony.ai, GAC Group launches Aion LX’s degree four self-driving model

Lyft, Magna in Deal to Develop Hardware, Software program for Self-Driving Vehicles Deutsche Publish to Deploy Check Fleet Of Totally Autonomous Supply Vehicles ZF autonomous EV enterprise names first buyer

Magna’s new MAX4 self-driving platform provides autonomy as much as Stage four Groupe PSA’s secure and intuitive autonomous automotive examined by most of the people

Mitsubishi Electrical to Exhibit Autonomous-driving Applied sciences in New xAUTO Check Car Apple acquires self-driving startup Drive.ai

Momenta – Constructing Autonomous Driving Brains JD.com Delivers on Self-Driving Electrical Vehicles NAVYA Unveils First Totally Autonomous Taxi

Fujitsu and HERE to accomplice on superior mobility companies and autonomous driving Lucid Chooses Mobileye as Associate for Autonomous Car Know-how

First Look Inside Zoox’s Autonomous Taxi

Nuro’s Robotic Supply Vans Are Arriving Earlier than Self-Driving Vehicles

Right here’s the place Tesla’s competitors will get its battery cells…

Panasonic (making offers with a number of automakers) LG

Samsung

SK Innovation Toshiba CATL

BYD

Northvolt (backed by VW & BMW) Farasis

Akasol

Cenat Wanxiang Svolt

Romeo Energy

Toyota accelerates goal for EV with solid-state battery to 2020

ProLogium Know-how Will Produce First Subsequent Technology Lithium Ceramic Battery For EVs BMW invests in Strong Energy solid-state batteries

Ford invests in Strong Energy solid-state batteries Hyundai Motor growing solid-state EV batteries

Most automotive makers will use these battery cells to fabricate their very own packs. Listed below are some examples:

Daimler begins constructing electrical automotive batteries in Tuscaloosa – one in every of eight battery factories GM inaugurates battery meeting plant in Shanghai

PSA to assemble batteries for hybrid, electrical vehicles in Slovakia Honda Companions on Common Motors’ Subsequent Gen Battery Improvement

France’s Saft plans manufacturing of next-gen lithium ion batteries from 2020

Sokon goals to be world supplier of battery, electrical motor, electrical management methods BMW Group invests 200 million euros in Battery Cell Competence Centre

BMW Brilliance Automotive opens battery manufacturing unit in Shenyang

Rimac goes to mass produce batteries and electrical motors for OEMs

Right here’s Tesla’s competitors in charging networks…

Electrify America is spending $2 billion constructing a high-speed U.S. charging community EVgo is constructing a U.S. charging community

191 U.S. Porsche sellers are putting in 350kw chargers ChargePoint to equip Daimler sellers with electrical automotive chargers

GM and Bechtel plan to construct hundreds of electrical automotive charging stations throughout the US Ford introduces 12,000 station charging community, groups with Amazon on residence set up Volta is rolling out a free charging community

Ionity has over 150 European 350kw charging stations

E.ON and Virta launch one of many largest clever EV charging networks in Europe Volkswagen plans 36,000 charging factors for electrical vehicles all through Europe Smatric has over 400 charging factors in Austria

Allego has a whole bunch of chargers in Europe PodPoint UK charging stations

BP Chargemaster/Polar is constructing stations throughout the UK Instavolt is rolling out a UK charging community

Fastned constructing 150kw-350kw chargers in Europe

Deutsche Telekom launches set up of charging community for e-cars Shell begins rollout of ultrafast electrical automotive chargers in Europe

Whole to construct 1,000 high-powered charging factors at 300 European service-stations Volkswagen, FAW Group, JAC Motors, Star Cost formally announce new EV charging JV BP, Didi Soar on Electrical-Car Charging Bandwagon

Evie rolls out ultrafast charging community in Australia

Evie Networks To Set up 42 Extremely-Quick Charging Websites In Australia

And right here’s Tesla’s competitors in storage batteries…

Panasonic

Samsung

LG

BYD

AES + Siemens (Fluence)

GE

Bosch

Mitsubishi Hitachi

NEC

Toshiba

ABB

Saft

Johnson Contols

EnerSys

SOLARWATT

Schneider Electrical

Sonnen

Kyocera

Kokam

NantEnergy

Eaton

Nissan

Tesvolt

Kreisel

Leclanche

Lockheed Martin

EOS Vitality Storage

ESS

UET

electrIQ Energy Belectric Stem

ENGIE

Redflow

Renault Primus Energy

Simpliphi Energy redT Vitality Storage Murata Bluestorage

Adara Blue Planet

Tabuchi Electrical Aggreko Orison

Moixa Powin Vitality Nidec Powervault Schmid

24M Ecoult Innolith

LithiumWerks

Natron Vitality

Vitality Vault Ambri

But regardless of all that deep-pocketed competitors, maybe you need to purchase shares of Tesla since you imagine in its administration workforce. Actually???

Elon Musk knew SolarCity confronted a ‘liquidity crisis’ at time of 2016 deal, authorized paperwork present Musk’s empire was in peril in 2016, and new paperwork reveal the determined plan to reserve it

Elon Musk knew SolarCity was going broke earlier than merger with Tesla Elon Musk Settles SEC Fraud Prices

Elon Musk, June 2009: “Tesla will cross over into profitability next month”

Extra Damaged Guarantees From Tesla

Tesla SEC Correspondence Reveals A Sample Of Inaccurate, Incomplete & Deceptive Disclosures Tesla: Test Your Full Self-Driving Snake Oil Expiration Date

As Musk Hyped and Joyful-Talked Traders, Tesla Stored Quiet A few 12 months-Lengthy SEC Probe The Fact Is Catching Up With Tesla

With Deceptive Messages And Buyer NDAs, Tesla Performs Stealth Recall Who You Gonna Consider? Elon Musk’s Phrases Or Your Personal Mendacity Eyes?

How Tesla and Elon Musk Exaggerated Security Claims About Autopilot and Vehicles When Is Sufficient Sufficient With Elon Musk?

Musk Talked Merger With SolarCity CEO Earlier than Tesla Inventory Sale Tesla Continues To Mislead Customers

Tesla Misses The Level With Fortune Autopilot Story

Tesla Timeline Reveals Musk’s Morality Is Extremely Handy

Tesla Scares Clients With Nugatory NDAs, The Each day Kanban Talks To Legal professionals Tesla: O, What A Tangled Net We Weave When First We Apply To Deceive Tesla’s Monetary Shenanigans

Tesla: A Failure To Talk Can You Actually Belief Tesla?

Elon Musk Seems To Have Misled Traders On Tesla’s Most Latest Convention Name

Understanding Tesla’s Potemkin Swap Station

So in abstract, Tesla is about to face an enormous onslaught of competitors with a market cap bigger than

Ford’s and GM’s regardless of promoting fewer than 400,000 vehicles a yr whereas Ford and GM make billions of dollars promoting 6 million and over eight million autos respectively. Thus this cash-burning Musk vainness undertaking is price vastly lower than its over $50 billion enterprise worth and—due to over $30 billion in debt, buy and lease obligations—might ultimately be price “zero.”

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