Vanity Fair Bethany Mclean hit piece for Chanos

[bhzmark]

“He’s Full of *sugar*”: How Elon Musk Gambled Tesla to Save SolarCity

You can tell the journalistic standard employed by the headline, quoting the supreme authority of a disgruntled former employee -- a demographic known for their journalistic and factual integrity -- by offering the keen insight "He's full of *sugar*"

respond at Bethany McLean (@bethanymac12) | Twitter

Steve Jobs Ghost on Twitter

 

[TheTalkingMule]

Really surprised to see this from one of the few decent journalists out there. Given the times we're in, what female journalists must be going through day to day, and her other works.....she deserves a(one!) pass. Anyone read her recent book Saudi America? Phenomenal blow by blow recounting of everything discussed in @jhm 's "Shorting Oil" thread.

McLean really did not like the personal attacks on Linette Lopez, probably isn't a big fan of Musk, and is simply misreading a very complex situation. Not the end of the world. Business journalists are going to have a tough time interpretting the motivations of a man and company that are completely mission-driven.

 

[mos6507]

Really surprised to see this from one of the few decent journalists out there.

Surprised because it cuts to the heart of your fanboi narrative? Maybe, just maybe, there's merit to what this thorough article is saying. But no, any negativity must be classified as a "hitpiece". Classic trump-like defense.

 

[TheTalkingMule]

Surprised because it cuts to the heart of your fanboi narrative? Maybe, just maybe, there's merit to what this thorough article is saying. But no, any negativity must be classified as a "hitpiece". Classic trump-like defense.

I took my post as refuting this being strictly a "hit piece". Did I misinterpret myself?

The fanboy/progressive vs. short/fossil interest battle itself is what creates these articles. It's become so heated and emotional that it's easy to see things that aren't there. Like a major problem in Buffalo, or a coordinated media conspiracy.

Look at that guy from CNBC who interviewed Chamath Palihapitiya, he was absolutely livid by the end because everyone has taken sides.

 

[omgwtfbyobbq]

Surprised because it cuts to the heart of your fanboi narrative? Maybe, just maybe, there's merit to what this thorough article is saying. But no, any negativity must be classified as a "hitpiece". Classic trump-like defense.

Effective hit pieces have to have merit. If they didn't have any merit they would have no legitimacy and be ineffective. In general it's all about the tact the writer takes.

For instance, the Enron article was far more positive while pointing out potentially suspect behavior.

Of course everything could go swimmingly. Enron has told analysts that it plans to sell between $2 billion and $4 billion of assets over the next 12 months. The bullish scenario for Enron is that the proceeds from those sales will reduce debt, and as earnings from new businesses kick in, the company's return on invested capital will shoot upward.

The Tesla article was far more negative while pointing out potentially suspect behavior.

Musk’s other proclamations in recent months have been far grander. He has promised that by next year, Tesla will be producing self-driving cars—and deploying a fleet of 1 million robotaxis. He has claimed that Neuralink, his secretive start-up, has developed a “thread” that can be inserted into the human brain, merging our minds with artificial intelligence. And he is seeking approval to build an underground “hyperloop” that will whisk passengers between Washington, D.C., and Baltimore in 15 minutes.

 

[bhzmark]

Surprised because it cuts to the heart of your fanboi narrative? Maybe, just maybe, there's merit to what this thorough article is saying. But no, any negativity must be classified as a "hitpiece". Classic trump-like defense.

No it doesn't cut to the heart of anything except showing that journalistic standards are slipping. The headline choice alone starts the bias from the beginning. Compare:

"Is Enron overpriced?"

with

"He's full of *sugar*"

And no substance in the article that I could find and the allegations and conjecture were all sourced from implausible short sellers or disgruntled employees. Sorry the actual facts don't support the narrative you tell yourself. Like McLean -- you are devoid of specific facts logic and reason.

 

[anthonyj]

This isn’t a hit piece. It’s a masterpiece. It’s the truth, and it hurts. Tesla is going bankrupt in a few days. Elon’s CGI team will finally be unmasked. I did purchase many $50 puts. Throw fElon in the slammer already

 

[Doggydogworld]

“He’s Full of *sugar*”: How Elon Musk Gambled Tesla to Save SolarCity

You can tell the journalistic standard employed by the headline, quoting the supreme authority of a disgruntled former employee -- a demographic known for their journalistic and factual integrity -- by offering the keen insight "He's full of *sugar*"

respond at Bethany McLean (@bethanymac12) | Twitter

Steve Jobs Ghost on Twitter

View attachment 446587

The headline is inflammatory, but authors don't write headlines. The article itself is negative, but who writes a happy article about a debacle? (Aside from CleanTechnica, ha).

McLean really did not like the personal attacks on Linette Lopez, probably isn't a big fan of Musk, and is simply misreading a very complex situation.

What is so complex? What is she "misreading"?

Did corrupt NY politician steer GF2 contracts to their cronies or not?
Did Musk vastly overstate Silevo's (now scrapped) technology or not?
Is GF2 making tens of GW per year or not?
Did Solarcity flow cash to Tesla as Musk said or not?
Did Tesla did wind SCTY down quietly behind closed doors (as I predicted) or not?

Finally, did Musk use a glitzy demo of non-functional solar tile mockups to sell the SCTY deal or not? Don't get me wrong, I'm 100% certain he intended to invent and deliver the product he pretended they already had. But so did Elizabeth Holmes. At least Ms. McLean didn't go there.

 

[bhzmark]

authors don't write headlines.

sometimes they do. sometimes they don't. I suspect this one did. In other references to the article Vanity Fair tones down the headline.

who writes a happy article about a debacle?

Do you think an article with sources other than undisclosed shorts and disgruntled employees must be happy? Is that the only alternative? Can you muster the cognitive power to consider another alternative?
Could a journalist report the statistical incidence of electrical fires from solar installations? Was Tesla's rate higher? Or was this more click bait journalism converting statistical bad luck into a "debacle"? Is she next going to write about every Tesla car accident as a "debacle"?

Electrical fires happen, There is no evidence that Solar City installations had a higher incidence of fire events than other PV installations. But of course that would take work and intelligence to answer that question. Something in short supply by the likes of Lopez and McLean and Boudette

Photovoltaics (PV) Systems

 

[MikeC]

The Catastrophe Capitalist

"Reporters, too, have a vested interest in cultivating short-selling sources. When a short-seller uncovers fraud, it often translates into the sort of epic story that can make a business reporter’s career. After Chanos tipped Bethany McLean, then at Fortune, to the problems at Enron, she landed a $1.4 million book deal and an Oscar-nominated documentary, and she recently was hired as a contributing editor at Vanity Fair. McLean and Nocera recently nabbed a reported seven-figure book deal chronicling the fall of Wall Street.

Some believe these symbiotic interests can steer reporters to favor Chanos’s point of view over the defense of a CEO or a company’s PR department. “Everyone wants to be the next Bethany McLean,” says one anti-short corporate lawyer.

Of all the journalists whom Chanos deals with, McLean—a former Goldman analyst turned financial writer—maintains a special relationship with Chanos that is the subject of lore and jealousy among rival business writers. At Fortune, McLean wrote features about the Australian bank Macquarie and Fairfax Financial—both companies on which Chanos had significant short positions. Through McLean, Chanos had access into the pages of Fortune."

 

[TheTalkingMule]

Yawn....wake me up when they break a single term of their contract with NY state.

My Buffalo panels have been up since late April, pumping electrons like a mofo.

 

[TheTalkingMule]

So that was a fairly big FUD piece by a legit journalist, followed up with CNBC coverage. And.....nothing.

NASDAQ down, macros down, TSLA up on almost no news. Noise will eventually be ignored, if you don't legitimize it by engaging.

 

[bhzmark]

Poor chanos and McLean. He wasted a chit and she now has an article that won't age well.

So that was a fairly big FUD piece by a legit journalist, followed up with CNBC coverage. And.....nothing.

NASDAQ down, macros down, TSLA up on almost no news. Noise will eventually be ignored, if you don't legitimize it by engaging.

 

[TheTalkingMule]

Poor chanos and McLean. He wasted a chit and she now has an article that won't age well.

Bob Dylan had a 5 or 6 albums that were horrendous. It's hard not to take the money, especially if you halfway agree with what you're copy/pasting. I'm excited to finally see the market wake up to the BS nature of these pieces.

 

[WoodsideDad]

The headline is inflammatory, but authors don't write headlines. The article itself is negative, but who writes a happy article about a debacle? (Aside from CleanTechnica, ha).



What is so complex? What is she "misreading"?

Did corrupt NY politician steer GF2 contracts to their cronies or not?
Did Musk vastly overstate Silevo's (now scrapped) technology or not?
Is GF2 making tens of GW per year or not?
Did Solarcity flow cash to Tesla as Musk said or not?
Did Tesla did wind SCTY down quietly behind closed doors (as I predicted) or not?

Finally, did Musk use a glitzy demo of non-functional solar tile mockups to sell the SCTY deal or not? Don't get me wrong, I'm 100% certain he intended to invent and deliver the product he pretended they already had. But so did Elizabeth Holmes. At least Ms. McLean didn't go there.

Precisely!

Absolutely agree with those who point out you can find disgruntled former employees/bearish investors for just about any company. I don't ascribe much to those quotes, though an article without any would be rather boring. But the substance itself is pretty damning.

 

[bhzmark]

But the substance itself is pretty damning

Which?

 

[TheTalkingMule]

It boggles my mind that posters don't see how vital the SCTY acquisition(bailout, whatever) was. Why are you even invested in TSLA after it hit $378 if you don't think the energy services side will be far more than half the $1T valuation Elon predicts? Do you think a car company is going to be worth $1T in 2030?

Did corrupt NY politician steer GF2 contracts to their cronies or not?
Did Musk vastly overstate Silevo's (now scrapped) technology or not?
Is GF2 making tens of GW per year or not?

I have no idea. How's that Elon's fault?
Silevo was bought in 2014, I have no idea why. Apparently it didn't work out....so what?
I'm not sure what production is like in Buffalo, all I can say is I have 20 on my roof. Have they missed any of the dozen or so employment or economic activity commitments to the state? Have they guided to miss any? No.

Did Solarcity flow cash to Tesla as Musk said or not?
Did Tesla did wind SCTY down quietly behind closed doors (as I predicted) or not?
Finally, did Musk use a glitzy demo of non-functional solar tile mockups to sell the SCTY deal or not?

TSLA absorbed the $2B in debt and retained some cash flow on the SCTY installs. I assume nowhere near $2B, but I have no idea.
No. Tesla correctly laid off most of the door-to-door sales team because it made sense. That business model makes no money and hinders growth regardless of scale, so Elon cut them all loose and waited for the next phase. Here we are with online pricing and "rentals" beginning the next phase.
I have no idea. My assumption was they had working prototypes and a plan for production then Elon immediately started promoting. There's a guy detailing his install on this very site, so again.....what's the problem? There was a very detailed contract up front and they've met every commitment. Wake me up when they don't.