Page 145 - MS Year in Review 2020

On June 25, 2020, an article in the Wall Street Journal, states “Tesla Falls Short

in Customer Satisfaction Survey. 129 ”

Storm Warning: Growing Pains are hazardous for corporate health!

 Danger ahead: Growing pains are a classic leading indicator of future

financial difficulties.
 Warning: Growing pains are a symptom of a deeper systemic

problem—the organization has outgrown its infrastructure.
 Companies that ignored growing pains often become Corporate
Zombies, including Delorean Motors, Osborne Computers, and

Webvan.

In another article, I recently provided a detailed assessment of whether Tesla is

being built for “sustainable success. 130 ” My conclusion is that:

“Currently Tesla’s overall average score of 3.0 places Tesla in the category of
“Marginally Successful Organizations.” In fact, Tesla’s score of 3.0 is barely

above the category of companies that are “at Risk,” which includes companies
which scores are less than 3.0.

What Is Mr. Markets Response? “Doesn’t Matter”!

OTHER EXPLANATIONS FOR MARKET MADNESS

AND S & P COMMITTEE MYOPIA

If the market and the S & P Committee do not care about real profits, what else can
be the rationale for the continued rise in Tesla’s stock price and the Committee’s
seemingly irrational decision to include Tesla n the S & P 500?

129 Tim Higgins, “Tesla Falls Short in Customer Satisfaction Survey,” Wall Street Journal, June 25,
2020, p. B. 1
130 Eric Flamholtz, “Is Tesla Being “Built for Sustainable Success”℠? Linkedin, September 2. 2020

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