Tag Archive: John Sculley


The national Twitter Bull-in-a-China-shop champion may not be the one you suspect.

Would you allow Elon Musk to baby-sit your retirement nest egg?

REUTERS/Rashid Umar Abbasi

Consider the following:

In the last three months, Tesla common shares (NASDAQ: TSLA) are down $69.59 or 19.74 percent.

Tesla confirmed today the Department of Justice (DOJ) is launching a criminal probe into les affaires at Tesla.

Earlier, the Securities Exchange Commission (SEC) announced its own civil investigation following Tesla founder Elon Musk’s August 7 tweet, proclaiming “funding secured” for taking Tesla private. Is Musk guilty of selective disclosure of material information (e.g., “Funding secured) in violation of SEC Reg FD (Fair Disclosure)?

There was also the inexplicable video of Musk smoking dope on television.

Why Elon, why?

Musk charged not once but twice that one of the heroes, saving the Thailand boys’ soccer team from a flooded cave, is a “Pedo guy.”

Nomura Securities downgraded TSLA from “buy” to “neutral,” reducing the company’s price target from $400 to $300, concluding that Tesla shares are “no longer investable.”

“Notwithstanding improving fundamentals, we believe that Tesla is in need of better leadership, an about face, and are moving to the sidelines until we see what happens with management. “ – Nomura Securities analyst Romit Shah

Does Elon Need His Own Mad Dog Mattis?

The best-and-brightest public relations counselors in the world can do absolutely nothing with Elon, if and until he is willing to ponder sage advice for even a nanosecond.

Tesla co-founder and CEO Elon Musk takes a drag from a cigarette laced with
marijuana in this screenshot from the Joe Rogan Experience podcast on
Thursday, Sept. 6, 2018.

Some have suggested shaking up the Tesla Board of Directors to include strong-willed  independent hombres and mujeres willing to practice tough love with Elon (e.g., no public smoking marijuana for whatever reason).

Elon ‘Musk’s brother and board member, Kimbal, is not a candidate for his job. Did you see his CNBC interview this week from the floor of the venerable NYSE wearing a cowboy hat?

Why Kimbal, why?

Besides trying to run both publicly traded Tesla (EVs/solar) and privately held SpaceX (rockets) at the same time and thus needing more sleep, maybe the biggest issue is way too many sycophants kissing Elon’s derriere for way too long.

Remember the gushing CBS 60 Minutes Scott Pelley interview of Elon back in 2014? Musk was hailed at the time as the second coming of … Steve Jobs including  Almost DailyBrett. Your author repeatedly bought and sold Tesla shares for a nice profit, except the last time, selling for a modest loss.

The CNBC pundits were asking out loud circa 2014 whether Tesla was 1.) An electric vehicle company, 2.) an energy company or 3.) Elon Musk’s company?

The issue now is what would happen if a stronger, independent Board of Directors took the helm at Tesla? Would they have the cojones to fire Elon Musk? Would that stunning action be the 21st Century equivalent of John Sculley firing Steve Jobs at Apple? How did that move play out?

Most of all, what would happen to Tesla’s stock? The shorts have already gone crazy; they presumably would have a field day.

Maybe what Elon needs is his own version of a chief operating officer Mad Dog Mattis or some other chain-of-command George S. Patton type to knock off the nonsense?

Until there is some sense of consistent operating discipline (see Tim Cook’s management of Apple following the 2011 passing of Steve Jobs), the shorts will continue to bet against Tesla and its common shares.

Anybody want to “short” Apple? Didn’t think so.

Most of all, Elon Musk should be precluded from even going near Twitter. These 280 characters can lead to a heap of trouble, including twin probes by the DOJ and the SEC.

Audi today unveiled its $75,000 luxury EV SUV. There is considerable competition because electric cars are not going away.

Static photo,
Colour: electric green

Tesla still maintains considerable advantages: Market leadership, pure-play, first mover, visionary company.

Even with its present cash burn and convertible notes coming due next March, Tesla can more than survive and continue to drive technology leadership.

All Tesla needs is for a Mad Dog to put a discipline leash on one, Elon Musk.

https://www.forbes.com/sites/jimcollins/2018/09/05/elon-musks-increasingly-erratic-behavior-comes-at-a-price-for-tesla-shareholders/#1058c7323944

https://www.mercurynews.com/2018/09/11/elon-musks-erratic-behavior-continues-to-rattle-wall-street/

https://www.cnbc.com/2018/09/18/tesla-stock-drops-after-company-reportedly-to-face-us-criminal-probe-over-musk-statements.html

https://www.nytimes.com/2018/08/13/business/dealbook/tesla-elon-musk-saudi-arabia.html

https://almostdailybrett.wordpress.com/2014/04/02/only-in-america/

https://almostdailybrett.wordpress.com/2014/07/18/donate-to-united-way-or-invest-in-tesla/

https://www.cnbc.com/video/2018/09/17/kimbal-musk-says-his-brother-elon-is-doing-great.html

 

I’d like to warn the best of them, the iconoclasts, the innovators, the rebels, that they will always have a bull’s-eye on their backs. The better they get, the bigger the bull’s-eye. It’s not one man’s opinion; it’s a law of nature.” – Nike founder Phil Knight

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena …” – President Teddy Roosevelt

There are no statues devoted to critics.

Our increasingly complex data-driven society is overloaded with analysts, reviewers, chroniclers, interpreters – creating nothing of meaningful value – but they are always quick to cast stones at those who try to make the world a better place.

As Phil Knight said in his New York Times best seller Shoe Dog, “Entrepreneurs have always been outgunned, outnumbered.”

A perfect example – not the first one and certainly not the last – is the use of a series of infographics to depict an engineering/entrepreneur who tried and tried and succeeded brilliantly, but is portrayed by his failures.

A May 26 MarketWatch piece by Sally French includes a five-part infographic, which catalogs a litany of failures by Tesla co-founder, SpaceX founder, SolarCity co-founder and PayPal co-founder Elon Musk.

When asked to describe himself by Steve Croft of CBS’ “60 Minutes,” Musk responded that he regarded himself simply as an engineer. Almost DailyBrett has worked with engineers for years, attempting to transform their anal exactitude, never-ending acronyms and nomenclature into plain English.

What characterizes engineers is their willingness, their compulsion to throw ideas at the wall. Some will stick, and others … oh well.

Elon Musk is not afraid to fail. He is more scared by the prospect of not even trying.

Alas, Musk is human. Five of his SpaceX rockets blew up. He was ousted from PayPal on his honeymoon. He made $180 million from his stake in PayPal. He invested this money and presumably much more in SpaceX and Tesla, both were hemorrhaging cash. He was not only broke, but in way-over-his-head debt in 2008.

Today, Musk is Forbes’ #80 wealthiest individual on the planet with an estimated worth of $13.9 billion. His Tesla is the pure-play leader in energy-efficient electric cars, ion-Lithium batteries and solar. Is Tesla an electric car company that helps combat climate change? An energy company that shuns fossil fuels? Or is it, Elon Musk’s company?

How about all of the above? To most investors, the answer would be third … Tesla is Elon Musk’s company … and there may lie the reason for the MarketWatch infographics, illustrating Musk’s failures. Schadenfreude has never felt so good or gut.

A similar set of questions can be asked about Musk’s SpaceX, which is transporting materials to the International Space Station and may someday put humans on Mars. Think of it this way, four entities have successfully fired rockets into space: The United States of America, Russia, China and Elon Musk’s privately held, SpaceX.

The Importance of Failure

“I think it’s important to have a good hard failure when you’re young because it makes you kind of aware of what can happen to you. Because of it, I’ve never had any fear in my whole life when we’ve been near collapse.” — Walt Disney

Would you rather be Steve Jobs, who was terminated by the company he created, Apple?

Or would you rather be John Sculley, who will go down in history as the man who fired Steve Jobs?

 

 

Sculley recently tried to blame the termination of Jobs on the Apple Board of Directors at the time, but the die has already been cast. Sculley will follow Jobs to the grave as the man who sent packing the modern-day equivalent of Leonardo da Vinci.

Nike founder Phil Knight recounted in his memoir how he started his company with a $50 loan from his dad. Today, Nike is the planet’s No. 1 athletic apparel and shoe provider with $33.92 billion in revenues, $86.8 billion in market capitalization and 70,000 employees.

Uncle Phil is the 28th wealthiest homo sapien in the world at $26.2 billion. Keep in mind, this company was literally days, if not hours, away from bankruptcy too many times to count between 1962 and going public in 1980.

For Musk, his tale is a South Africa-to-America story. Today, Tesla is a $8.55 billion company, employing 17,782 with investors pouring $53.4 billion into its market cap.

Almost DailyBrett has been consistent in hailing the risk takers, the entrepreneurs, those who stare failure right in the face and sneer. The results are great companies that employ 10s of thousands and produce the products we want and need.

There will always be those who rage at the “billionaire class” to score political points.

And some with too-much-time-on-their-hands develop infographics to illustrate how the great have fallen here and there.

Wonder if any of these critics, analysts, reviewers etc. would have fired Steve Jobs?

Almost DailyBrett radical transparency: Your author happily owns shares in both Nike (NYSE: NKE) and Tesla (NASDAQ: TSLA). The above epistle does not constitute investment advice for either company other than to generically say, Buy Low, Sell High.

http://www.marketwatch.com/story/the-many-failures-of-elon-musk-captured-in-one-giant-infographic-2017-05-24

http://www.theodore-roosevelt.com/trsorbonnespeech.html

http://www.marketwatch.com/story/the-fascinating-life-of-elon-musk-captured-in-one-giant-infographic-2016-04-13

https://www.youtube.com/watch?v=bojY5N2Ns3k

https://almostdailybrett.wordpress.com/2015/02/05/a-man-in-the-arena/

https://www.forbes.com/billionaires/list/#version:static

https://www.forbes.com/sites/randalllane/2013/09/09/john-sculley-just-gave-his-most-detailed-account-ever-of-how-steve-jobs-got-fired-from-apple/#38def8d4c655

 

 

 

 

 

 

 

 

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