The Rising Influence of Rising Affluence

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Chanos has been much more consistent with his short thesis compared to WSJ which has been all over the map. Chanos applies the rule of thumb for auto companies historic Capex requirements to manufacturing ratio that equates to endless stream of capital raises. WSJ started out with their negative model S test drive review, followed by predictions of S manufacturing misexecution, followed by predictions of X manufacturing misexecution and now 3 manufacturing misexecution. Chanos also claims that Musk is a liar. I thought Mush was lying when he claimed he can land a rocket on a floating barge. Does Musk over promise? Sure. Is he a demanding boss? He better be given his goals.

I am currently intrigued by the new Roadster specs. The implications on battery density advances and cost/KW still hidden from view are huge. I expect the range of new S and X models will increase substantially by 2020 while cost remains the same if not lower.

I am glad I didn't short when WSJ gave their bad model S review as I was tempted. Ended my WSJ subscription, still have Barrons.