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In 2010, WeWork was co-founded by Israeli businessman Adam Neumann and his American counterpart Miguel McKelvey. The idea was inspired by the high level of empty office spaces following the 2008 credit crisis and the number of freelancers and start-up founders that crisis engendered.
https://harpersbazaar.com.au/we-crashed-series/
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Brianna Wu
Executive Director of @rebellionpac
Former Candidate for US House in MA. Software engineer.
brianna@hey.com
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Tesla is going to be the next WeWork. If you look at the history of Tesla’s stock price, it was never based on car sales. It’s always been based on hype from Musk and a vision for a future. That vision was appealing to many, including liberal environmentally-conscious nerds.
6:22 AM · May 23, 2022·Twitter Web App
2/ But with the Twitter acquisition, Musk has gone full alt-right. And where the previous stock price required the press to mirror fantastical, illogical claims about autonomous robots, self-driving cars, and a magical future? Expect more skepticism.
3/ Tesla’s stock price is completely divorced from any kind of financial reality. It’s worth MAYBE $150, and even at the new low if not worth $680. People are going to start digging into stock market questions, like “How profitable is each car Tesla sells?”
4/ An army of utterly unethical Tesla-hype media (profiting from their own investments) has convinced people to look past these fundamental valuation questions for a long time. Those days are coming to an end where more of the mass public sees Musk for the fraud he is.
5/ So, please bookmark this Tweet. Expect a Tesla stock crash soon. It’s going to go the way of WeWork, Theranos, Luna and all these other great scams of the 21st century. It will eventually settle of a fair valuation. Probably around $100.
6/ Quick addendum: My main comparison here is to WEWORK. It’s literally the first sentence. WeWork is still around, selling office space. Secondly, in comparing Tesla to Theranos, I specifically mean the silencing of critics. Tesla has a long history of attacking journalists.
7/ I read Musk’s recent announcement of a legal attack team as further intention to sue critics. Additionally, there are armies of financially-motivated Tesla propagandists hyping the stock. Theranos silenced critics and investors paid a steep price. The comparison is fair.
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WeWork
From Wikipedia, the free encyclopedia
WeWork Inc. (stylized in lowercase) is a provider of coworking spaces, including physical and virtual shared spaces, headquartered in New York City. As of December 31, 2021, the company operated 44.8 million square feet (4,160,000 m2) of space, including 19.8 million square feet (1,840,000 m2) in the United States and Canada, in 756 locations in 38 countries, and had 590,000 members, with a weighted average commitment term of 20 months.[1]
The company gained mainstream media attention in 2019 with its failed initial public offering (IPO) of company stock. The Wall Street Journal noted that upon the release of its public prospectus in August 2019, the company was “besieged with criticism over its governance, business model, and ability to turn a profit”.[2]
In September 2019, following mounting pressure from investors based on disclosures WeWork had made in its S-1 filing for the IPO, company co-founder Adam Neumann resigned from his position as CEO and gave up majority voting control in WeWork. Amid growing investor concerns over its corporate governance, valuation, and outlook for the business, WeWork formally withdrew its S-1 filing and announced the postponing of its IPO. At that time, the reported public valuation of the company was around US$10 billion,[3] a reduction from the $47 billion valuation it had achieved in January and less than the $12.8 billion it had raised since 2010.[4] As of May 2022 the company is traded at a valuation of $5.1 billion.
In October 2019, Neumann received close to US$1.7 billion from stakeholder SoftBank for stepping down from WeWork’s board and severing most of his ties to the company.[5] He was retained as a consultant with an annual salary of $46 million.[6]
The New York Times described the company’s failed effort to go public, and its related turmoil, as “an implosion unlike any other in the history of start-ups”, which it attributed to Neumann’s questionable tenure and the easy money previously provided to him by SoftBank, led by Masayoshi Son.[7]
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weehingthong 