So About That Musk Idea

Back on June 4th, I suggested that the bloom would soon be off the Elon “the next Steve Jobs” Musk, and that would express itself in the diminishment of price for SCTY and TSLA. As I put it, “One would think the market is trading Elon Musk’s reputation instead of two utterly separate companies, considering how they look like clones.”

Well, TSLA moved higher after my post, but then ultimately headed lower (I’ve marked the post date with an arrow).

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SolarCity, however, has been pretty much an unmitigated disaster (which is good), and again, I’ve denoted the date of the post with an arrow. The stock has moved even lower than when I took this snapshot. Simply stated, it has lost more than half its value since my post.

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I think Tesla will ultimately “catch down” (as opposed to catch up) once reality starts to hit that firm as well. I think remaining bearish on Mr. Musk is the right call.