Tesla Motors Achilles Heel; Governor Christie Not Thinking $TSLA, $GM, $F, $TM, $HMC

Tesla Motors (Nasdaq:TSLA) has pulled out of selling cars in New Jersey effective April 1. New Jersey has joined Arizona and Texas in insisting sales go through independent dealers.

Governor Christie is not thinking [maybe he does not know about this one].  Tesla shows every sign of being a disruptor in the automotive field and bringing more full efficient less polluting cars to the market.

Nothing about allowing a Tesla to be registered with Jersey plates. So the corporate stores in other states will drive the very big sales tax on cars to other states.

Garden State needs to think this one through.

For the conspiracy buffs  the other car companies are scared and are using what ever means available to slow down Tesla. Texas and New Jersey are big markets. Big auto will not care how silly the politicians look.

So add another factor to the Bear Case Scenario. Back room politics designed to frustrate Tesla.

George Gutowski writes from a caveat emptor perspective.

General Motors Sucker Play or Escape from Socialism $GM $F

General Motors (NYSE:GM) popped nicely because the US Government is reducing its stake. Good for US tax payers but the US Treasury will not really notice; it’s that bad in DC.

But we all knew this was going to happen so why the excitement? Underlying fundamentals have not changed in the car business. The jail break from socialism was planned for some time. So what’s the fuss about?

Share buy backs are a favourite financial engineering tactic to manipulate EPS manufacturing perceptions of earnings growth. GM can really ramp it up now.

Dividends are anemic make that non-existent. By declaring dividends GM will create a class of buy and hold investors which will help stiffen the price.

The short sale position is about 8% of float. That’s getting rather bullish and it was time to sting them. Corporate managements as you know love short sellers.

Share price represents the future value of earnings. Nothing new has transpired; especially on a fundamental basis. The furniture has been re-arranged in a more modern motif.

George Gutowski writes from a Caveat Emptor Perspective.