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Why Tesla Is Just a Ponzi Scheme

Written by Jason Williams
Posted January 31, 2022

I know that headline probably triggered more than a few Elon Musk acolytes. But once I’m done here, I’m hopeful they’ll hate me a little bit less… or at least see I’m only trying to help.

So let’s get into it…

What Is a Ponzi Scheme?

Back in the 1920s, a particular businessman in Boston made quite a living for himself running schemes where he’d promise great investment returns but just steal the money.

He started off with a legitimate arbitrage play, but quickly started diverting new investor money to pay himself and earlier investors.

He was far from the first person to do this. In fact, this kind of scheme had been going on for at least a hundred years at that point, but has probably been around even longer.

Yet, for one reason or another, this man’s scheme got a ton of attention in the press both inside and outside of the United States… both while it was inflating and after it collapsed too.

And a hundred years later, those kinds of schemes still bears that Bostonian's name: Charles Ponzi.

But you don’t have to be named Ponzi to orchestrate one. Probably the biggest and most famous Ponzi was perpetrated by the former chair of the Nasdaq, Bernard “Bernie” Madoff.

Madoff’s scheme likely ran for decades, defrauded thousands of investors, and cost its participants tens of billions of dollars.

But whether they’re large or small, Ponzi schemes all share one characteristic: Existing investors are only paid with funds from new investors.

That means when you can’t find any new investors, the scheme will fall apart.

And that brings me to Tesla…

What Happens When the Marks Disappear?

In case you’re not familiar with the parlance, a “mark” is the person a scammer is trying to scam. With Charles Ponzi and Bernie Madoff, those marks were private investors.

And that’s what makes their schemes easy to identify as Ponzis. They went out to individuals and promised high returns.

Then, in order to pay out those returns, they funneled money from new investors to existing ones.

But the Ponzis of today are a whole lot more complicated and a whole lot more careful about how they dupe investors into giving them money.

Tesla is a perfect example…

Without billions in taxpayer subsidies and billions more in carbon credit sales, Tesla has never and will likely never make a profit. And yet it continues to operate.

Pray tell, how do you think that works? I’m just spitballing numbers here to make an example…

But consider this: If Tesla needs $4 billion a year to pay its bills and it only makes $2 billion a year in sales, where does that extra $2 billion come from?

Spoiler alert: It comes from investors like you…

Well, not exactly like you. These are the investors that get called by companies and offered deals on the share price in exchange for a massive investment.

But either way, they’re outsiders. They’re not part of the scheme.

And when Tesla runs out of the money the last round of investors gave it, the company puts out a bunch of new shares to raise more money.

Then after burning through that money and having nothing to show for it, the company has to go out and raise more funds to keep paying those bills.

It’s the textbook definition of a Ponzi scheme. But it’s been so well orchestrated and so well hidden that even massive corporations like Vanguard, BlackRock, and State Street have fallen victim.

The only reason nobody’s cried foul is because the scheme hasn’t fallen apart... yet.

Elon Musk has been able to find enough rubes to fill each and every down-round financing he’s put out there because money has been free and growth has been the only thing that mattered.

Ponzis Only Hurt When You’re Still Invested

That’s not the tune the markets are singing anymore, however. Growth at all costs without profitability isn’t acceptable anymore.

So Elon has two choices. He can slow down growth in the hopes of reaching profitability.

Or he can keep accelerating growth in the hopes that the market will change how it values companies again.

If he chooses option one, the stock will get crushed as growth turns negative and profitability isn’t there yet.

If he goes with option two, he’s got no choice but to keep the Ponzi scheme going.

He’ll have to keep offering more and more shares to the market at lower and lower prices until, finally, there are no more marks left to fleece.

And I think Elon Musk realized this even before I did. Because several months ago, he started selling shares of Tesla…

He hasn’t stopped since. And I don’t think he’s going to anytime soon, either. Because he knows that Ponzi schemes only hurt the people who’re still in at the end.

And he thinks if he can get out of this Ponzi he’s been running for over a decade, he might just stay the richest person in the world.

But that’s not the only reason he’s jumping ship on his own company so quickly. There’s another reason he’s terrified…

And it’s much more pressing than the Ponzi eventually falling apart (because, as you now know, Ponzis can go on for a long time).

A Better Mousetrap

You see, Elon’s Ponzi has been executed on the idea that his electric vehicles are the future of transportation and somehow going to save the world.

But that’s one of the biggest lies ever told to the citizens of this planet.

Electric vehicles are, at best, a stepping stone to a really world-changing transformation in the automotive industry.

And at worst, they'll be something we all regret thinking so highly of a few decades from now.

Either way, they’re not going to be covering the roadways and parking lots of the planet. Not today. Not tomorrow. Not ever.

They’re just not what we need. They’re expensive. They're inefficient. And they’re actually really dirty.

The production of an EV is far more destructive to the environment than the production of an internal combustion engine (ICE) vehicle.

All that plastic is made from oil. Making all that carbon fiber creates about two–three times more carbon emissions than fiberglass and around 15 times more than steel.

The majority of the components give off greenhouse gasses during production and are unrecyclable after their useful life ends.

And then there are the batteries. Those are made of metals. Metals are mined with massive equipment. Mines destroy the environment around them.

Get where I’m heading?

So it’s quite obvious to anyone who cares enough to look that EVs are not the future. And as immersed in EVs as the CEO of an EV company must be, Elon Musk knows this very well.

Other companies have already build a better mousetrap. And when his marks… excuse me… when his investors find out they’ve backed the wrong horse…

Well, that Ponzi scheme will start to unravel even faster than you can say “crash!”

So Elon is cashing out. He’s getting out of the failing company that’s been no more than a gigantic Ponzi scheme.

And if he’s smart, he’s putting that money he stole from investors into the company that’s going to kill Tesla and put an end to Elon’s scheme forever.

Revolutions and Revaluations

It’s a revolutionary company that’s perfected a technology allowing it to create a 100% emission-free fuel from just the air around us.

It’s not a battery. It’s not made from dead dinosaurs. And it’s not radioactive.

It’s just 100% clean-burning, super-powered fuel.

And the company making it is still flying well under the radar of retail investors. So it’s valued at a paltry $38 million.

But as the revolution continues and this company becomes the dominant force, a revaluation is all but guaranteed.

And that could end with Tesla valued at $38 million and this company valued where Tesla used to be: $1 TRILLION!

But even if they only hit $38 billion, that would still work out to a company worth 1,000 times more than it is today. Heck, even a revaluation to $3.8 billion would work out to a 10,000% gain.

As this company’s technology hits the markets and investors catch on to who the real winner of the clean transportation race is, those gains are completely possible.

I want you to have a chance to get in now, while the stock’s still on the ground floor and all those gains are still waiting for you.

So I’ve attached a report with all the details. And I’m also including a presentation that explains everything.

I urge you to read or watch right this instant. It could mean the difference between retiring and retiring on a private island.

Take a little time right now and get the details. Then you can get invested and watch as Elon Musk’s Ponzi scheme falls apart and your stock shoots up the charts.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; the editor of Alpha Profit Machine, an algorithmic trading service designed specifically for retail investors; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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