Tesla is the ONLY One... [Stock Warning]

its official rivian has followed suit

and is adopting the Tesla charging

Network as of 2024 individuals that own

rivians will eventually and slowly start

getting access to Tesla charging

networks and models built in 2025 and

after will contain the North American

standard for charging this is really no

surprise as just like I tweeted this

morning Tesla's really the only North

American EV company to figure out how to

make a profitable electric vehicle

leaving the lucids the Fords the GMS the

rivians the pole Stars even to well

figure out profitability and you'll see

what I mean with pole star because you

might think their gross margin positive

but there's some accounting tricks that

probably leave them gross margin

negative let's talk about it Faraday

Futures uh who remembers Faraday Futures

Faraday Futures was like you know part

of the whole EV

um hype rally and the idea was that uh

you know they were they were going to

make modern life more convenient was the

suggestion and uh when you're getting

these incredible hyper cars and these

phenomenal cars that you could pre-order

it was kind of like elusive without the

Saudi backing and unfortunately they

they are now

you know substantially a penny stock and

this is a company that uh just filed to

basically raise more financing

uh basically raise more money as well as

do a massive reverse stock split

and uh I mean we could probably see the

signs of bankruptcy if we go through

some of their filings here let's look

here Faraday Futures investor relations

let's pull up one of their latest FCC

filings not to include their shelf

filing uh Friday after the market closed

for

um

for more financing as well as delaying

deliveries

let's pull up one of their latest okay

here we go share Tab and

let's just see what we have

there we go okay good so let's take a

quick look here at this report this is

Faraday Futures and what do we have here

if we can see any indications of pain so

oh yes no revenues okay right so the

income statement is no income uh we'll

go there in just a moment so what do we

have we have uh cash flow of negative

103 million dollars

for three months wow okay and then you

have another 17 here so you've got about

negative 120 million dollars of free

cash flow so you're burning 120 million

dollars of free cash flow in three

quarters or sorry three months

and then on the assets sheet oh that

makes sense yes you have 31 million

dollars of cash

and you're burning 120 million dollars a

quarter

which means you're burning

uh 30 million dollars in about

one-fourth of a quarter which means

you're burning all of the cash you have

in about 22 days so as of March 31st

this company had 22 days of cash

of course they do have deposits that

they can burn through and plant property

and Equipment here that keeps growing

oh don't mind the bills we have to pay

just another 130 million dollars of

bills we have to pay uh along with um

you know some longer term liabilities

over here and notes payable 92 mil

whatever okay point is companies out of

cash but at least they're making money

right oh

no uh operating expenses there literally

is no income they're not selling

anything yet you literally have no

income and cost of goods sold you just

have

R and D and G and a and sales and

marketing and uh loss on disposal of

plant property and equipment that

doesn't sound good why are you disposing

3.7 million dollars of plant poverty

equipment well you know because things

just aren't going well uh and then oh

um 83 million dollar loss here uh in in

q1 2023 so maybe not a surprise the

stock is doing a reverse stock split and

now they're raising money and the stocks

down like another 34 in pre-market going

from a whole 44 cents down to 34 cents

but now what is that

signal for us well it signals

that just because you have these

momentum rallies don't expect companies

not to come in and dilute the crap out

of you and this is one of the biggest

warnings that I regularly give when we

have these momentum rallies and Dead

penny stocks what happens is look at

this Faraday Futures was sitting down at

14 cents and so what happened well

everyone realized oh wow the bull market

might have legs so what do people do

they start pumping penny stocks so this

sucker goes from 15 cents to as high as

about 45 cents it basically three X's as

a stupid penny stock

and a terrible company with no

fundamentals with no income not a dime

of income burning 120 million dollars of

cash flow a quarter

it's insane it's 40 million dollars a

month evaporate could you imagine

evaporating 40 million dollars a month

that's nuts anyway so um so then what

happens it rallies a little bit and what

does the company do oh now that we've

meme rallied a little bit why don't we

dump on the normies who are buying our

crap stock and uh that's exactly what

they did to make them feel better we'll

do a reverse stock split and then we'll

raise more money and dilute the

shareholders even more

so

yeah

that tells you all you need to know

about Faraday Futures it's unfortunate

you know it's unfortunate you you want

businesses to be able to succeed you

don't want to see failure but uh

you just you just happen to get it

um you know the markets will have to

weed out the companies that deserve to

fail and unfortunately it's going to be

a lot of the auto manufacturers

uh you know other than ones that have

massive

support uh from probably ice Vehicles

you know to some extent maybe ggpi from

Volkswagen because they have such a ice

vehicle you know support by that

partnership with vdub you've got or even

geely you've got uh obviously you know

the support of uh GM's EV money losing

business they don't expect to be

profitable until like 2028 27 or 28 one

of those actually maybe even not even

this decade they reported that uh you

know their ice vehicle business is

basically supporting the losses and EVS

same thing with Ford or Vivian they're

all losing money nobody's figured out

how to make an electric vehicle and

actually make money

except for Tesla and that should be

really scary if you think about that I

mean for a moment just think about it

what are the popular electric vehicles

well

um

Tesla rivian

uh Lucid to some extent the Ford mockies

series some of the GM vehicles none of

them can make money

let's see for a moment ggpi

uh well pole star

um

so right they have a different Baker now

it's now psny let's throw a moment look

at psny

psny investor relations let's see if

they've at least figured it out uh Neo I

suppose a little bit but not not on net

basis growth spaces to some extent but

we as we already talked about earlier in

the live stream you get some Chinese

problems

uh Chinese economy problems okay so

pollstar

let's get one of their SEC filings and

just do a quick look

brief look you know usually we go deep

into these things in course member live

streams but today we're gonna do a quick

look at the latest annual filing for

these folks which was April 14th

and

let's hop on over

to that or share screen with our good

old

handy dandy stream yard here met

kevin.com streamyard to learn more about

that

all right so what do we have here's

pollstar's annual so this is just going

to take a hot minute to scroll down

all right come on I just want the

statements

sorry this always takes a while to get

down uh

annual reports especially these all

right here we go all right so this is a

year-ended so what do we have

oh pole star for the year ended 2022 we

have revenue of 2.4 billion dollars we

have cost of goods sold of 2.34 billion

dollars so you have a gross margin at

pole star

of

4.8 percent

and then you blew another

1.9 billion dollars on how do you blow

864 million dollars on SG a oh my God

they're blowing six times their r d on

selling and you know what a lot of the

manufacturers do is they just they they

put incentives into SG a

for people to buy the cars

so it's like handing somebody a stimulus

check from your Opex to go buy the car

this is not a profitable company it's

not a company making money I mean maybe

they'll Trend towards profitability but

not even pollstar can do it

sure byda can pull it off that's a good

example but they are also heavily

subsidized by their hybrid and their ice

vehicle Market but I mean you look pure

EV

oh

this is it is ugly out there how

how many of these companies are just

utterly failing so it explains why I

mean I hate to say it but I know people

like hey the only thing you like is

Tesla I mean obviously we know that's

not true you know heavily exposed to

chips and solar and and uh and uh and

energy since uh certainly November when

I launched my fund uh which which was

good timing I mean knock on wood it's

not always going to be that great uh but

uh can't be getting guarantees obviously

but it was good

but uh but anyway

I mean you just look at the competition

there is no competition right now it's

remarkable