Four Train Wrecks All In One Day: Mueller, Madoff, Musk Melon, And Munster -- July 25, 2019

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Disclaimer: I am an avid Trump supporter. I don't take him literally, but I take him seriously.

Disclaimer: If I knew how to short stocks I would be shorting Tesla.

Two of the four train wrecks today:

• the Bob Mueller testimony; and,
• Tesla's 2Q19 earnings

I don't watch network news or business news on television any more; I haven't watched either for at least a year now. I quit listening to Scott Adams podcasts about a year ago, also. But I digress. As I was saying, I haven't listened to television business news in at least a year. I particularly avoid CNBC.

However, earlier today, about 3:39 p.m. CT, I suppose, I was watching Tesla shares plummet "live" on Yahoo!Finance and I couldn't find the actual earnings report. In desperation -- because Tesla shares were falling so fast -- I quickly turned on the television, station 43, and CNBC. Phil LeBeau was in the middle of reporting the numbers (which means that "insiders" had the information minutes before the rest of us and were dumping shares as fast as they could -- and then "the rest of us" got the news).

As long as I was watching CNBC I figured I would stick with it for about 30 minutes. It was fascinating. I don't think I've heard such unguarded talk on a business show before (except that time Jim Cramer had a meltdown). The talking heads on the 3:00 - 4:00 p.m. segment had the following comments, previously posted and posted in "real-time" as I was listening to the report:

• reporting a loss of $1.12 (consensus was for a loss of 40 cents/share)
• gross margin: 19% (second or third consecutive quarter of decline; investors hoping for 20% or better; Munster says 19% respectable considering price of Model 3)
• disaster for investors 
• revenue in line; guidance on deliveries not 
• "extreme demoralizing release from Tesla; big miss; bar pretty low; record vehicle sales; if you can't generate a profit on record high sales" -- talking head 
• CNBC: trying to reassure investors but "maximum disappointment"
• "Goldilocks" quarter and they still lost over a dollar/share
• free cash flow -- $614 million  ($136 million expected)  -- due to higher deliveries
• "Model 3: structurally unprofitable"; "S and X -- decreasing sales"
• impressed by free cash flow (but that's very temporary -- based on higher deliveries)
• interesting: CNBC hanging their hat on "free cash flow"
• and, yet, lost money on a record-setting sales quarter
• tax credit goes away completely at end of year

So, that was that. "Fast Money" came on at 4:00 p.m. and just before turning off the television, Gene Munster came on. Speaking in a professor's authoritarian manner, he said he wanted to provide some "balance" to the reporting. He made it sound like things were not as bad as 23 other talking heads were making things out to be. I honestly did not know in what universe he was living. Certainly not the same universe I or the 23 other talking heads were living in.

Then he slipped. He mentioned that he "believed" in Tesla.

Wow.

But there is much more. It is amazing what Gene Munster left out. He knows Tesla very, very well. I do not know if he was aware of "the rest of the news." This news was not reported at the time Phil LeBeau was reporting the numbers.

Tesla co-founder, the longest serving exec besides Elon Musk, is stepping down. If a reason was given, I was not able to find it. Perhaps to spend more time with his family.

But of all the news in the 2Q19 conference call, that should have been the headline: that a Tesla co-founder is stepping down. It's not hard to find the story on the internet once one knows the story, but if I had not happened to see the headline buried in the LA Times I still would not have seen it.

I wonder how many Tesla fanboys out there know that a Tesla co-founder is stepping down. It will be interesting to see if that makes headline news over at Yahoo!Finance reporting on Tesla Thursday morning, the morning after the earnings call.

I just checked. Yes, that's "the editor's pick." It will be interesting to hear what Gene Munster has to say about that little bit of news.

 Two comments about JB Straubel stepping down:

"25 other senior managers"? I believe JB Straubel is now #31.

In other news, Bernie Madoff has formally petitioned President Trump for clemency.

Wow, what an incredible 24 hours.

I'm glad I don't know how to short stocks. I'm sure I would lose bigly. Tesla will no doubt rally from here.

See disclaimers.