EDINBURGH — South Africans are very proud of Elon Musk, who has the status of a global tech pioneer like Facebook founder Mark Zuckerberg for his advances in getting environmentally friendly Tesla cars into showrooms or maverick space dreamer Virgin’s Richard Branson for plans to get to Mars. But, the excitement around Musk is disappearing fast. After years of overpromising and underdelivering on the Tesla financials to stock market investors, analysts have been asking harder questions. And, as he fails to provide satisfactory answers, Musk has become aggressive to analysts and increasingly visible in the public domain via Twitter. Stockbroking analyst Nigel Dunn, who spotted Steinhoff before its stock price collapsed, has put together six graphs that tell a scary story for anyone who has Tesla shares. Disclosure: Tesla was sold out of the BizNews portfolio earlier this year. – Jackie Cameron
By Nigel Dunn*
About Nigel Dunn:
- After graduating with a B Com Honours, Nigel Dunn moved into stockbroking close on three decades ago. He has been a registered member of the South African Institute of Stockbrokers since 1994. He started his career in 1987 advising individuals, moved to research, company specific and of a strategic nature, before settling in fund management, both for private clients and pension funds. He was a partner of Anderson Wilson, subsequently acquired by Standard Bank, where he became a director of Standard Equities. Thereafter he moved to Investec Securities where he managed funds for private clients, family trusts and helped on the corporate broking desk. Most recently he has been managing discretionary funds for clients, proprietary trading in addition to generating his own corporate research. Of late he has started to write articles of a market related nature intended to stimulate thought and debate.