As Tesla Breaks Faith With Its Believers, It's Time To Go Short

Phr3121

Phr3121

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Story: https://seekingalpha.com/article/4145646-tesla-breaks-faith-believers-time-go-short

Summary
. I think Tesla just made the biggest strategic mistake of its existence.
. Tesla, a faith-based investment, broke faith with its believers.
. Assume your cash will end just as all Tesla's cash ends: With a rapid burn.

"Elon Musk’s immense self-regard has led him to believe his company can do things differently from the way other automakers do them. He has special insights and visions that afford him the luxury of shortcuts. But what seems to him a special vision and understanding seems a prodigious arrogance and ignorance. By far the most important subsidy has been the $7,500 U.S. federal tax credit. If the Tesla buyer could not make use of it, then the leasing company could."

"But for Tesla, the end is near. That credit will be slashed in half in Q4, and will disappear altogether in 2019. Meanwhile, Tesla's competitors will have lots more running room. Tesla Is Structurally Bankrupt. Even once it ramps up Model 3 production, Tesla still will be losing hundreds of millions each quarter. As CoverDrive has spelled out, the company is structurally bankrupt - which is to say it depends completely on continued capital infusions for its survival."
 
In order to short, you have to have someone willing to take the other side right? Well, if what TS is posting is true, why will anyone bother taking the other side of the short sale?

They can simply not do anything. If Tesla stock does not flunk, they can still capitalize the old fashion way. If it does, well, at least they did not help make someone else rich. Who the heck wants to do that?
 
Tesla just posted their biggest quarterly loss yet, to the tune of $657million. Has Tesla ever posted a profit for 4 straight quarters?
https://www.cnbc.com/2018/02/07/tesla-q4-2017-earnings.html

Would Tesla even exist if it weren't for Uncle Sam injecting money into it? Which gets to my next question: why isn't Uncle Sam injecting money into every viable business, and isn't it unfair the gov. doesn't do this?

Elon Musk is worth $20 billion. I haven't kept up to speed on Tesla's gov. subsidies to the tune of billions, so has Musk paid of the government?
 
MicroBrew said:
Tesla just posted their biggest quarterly loss yet, to the tune of $657million. Has Tesla ever posted a profit for 4 straight quarters?
https://www.cnbc.com/2018/02/07/tesla-q4-2017-earnings.html

Would Tesla even exist if it weren't for Uncle Sam injecting money into it? Which gets to my next question: why isn't Uncle Sam injecting money into every viable business, and isn't it unfair the gov. doesn't do this?

Elon Musk is worth $20 billion. I haven't kept up to speed on Tesla's gov. subsidies to the tune of billions, so has Musk paid of the government?
Click to expand...

This tax credit is not specific to Tesla it's for the industry.
 
MicroBrew said:
Tesla just posted their biggest quarterly loss yet, to the tune of $657million. Has Tesla ever posted a profit for 4 straight quarters?
Click to expand...
Is the loss due to spending on expansion?

Do revenues warrant the expenditures?

its a good thing to "lose money" if you think tesla has room to grow.

What specifically does tesla offer to consumers that an electric ford or chevy cant provide?

patents? style? ect.
 
uncommon said:
What specifically does tesla offer to consumers that an electric ford or chevy cant provide?
Click to expand...
Well, as of now they I THINK are the only 100% electric option on the road, at least in the US. I think

Even the much marketed Volt by Chevy is a hybrid isn't it?
 
Gregolian said:
Well, as of now they I THINK are the only 100% electric option on the road, at least in the US. I think

Even the much marketed Volt by Chevy is a hybrid isn't it?
Click to expand...

No. The Chevy Volt 2 is a plug in hybrid ... my wife has one and I drive it all the time. The Chevy Bolt by contrast, with a confusingly similar name, is a pure electric. There are tons of electric cars in the US nowadays. They are really nice.
 
Zankou said:
No. The Chevy Volt 2 is a plug in hybrid ... my wife has one and I drive it all the time. The Chevy Bolt by contrast, with a confusingly similar name, is a pure electric. There are tons of electric cars in the US nowadays. They are really nice.
Click to expand...
This is why no one can take Chevy seriously.
 
uncommon said:
Is the loss due to spending on expansion?

Do revenues warrant the expenditures?

its a good thing to "lose money" if you think tesla has room to grow.

What specifically does tesla offer to consumers that an electric ford or chevy cant provide?

patents? style? ect.
Click to expand...
Don't know what the loss is from. I do know Tesla has had constant trouble delivering enough cars to market.

Once the big boys get cranking, I think Tesla will take a dive. Tesla just can't compete with the likes MB, VW, Toyota, Honda, GM and their established production and service abilities.

I think *part* of the appeal is just the sexiness of the Tesla brand, and their cars do look good.
 
MicroBrew said:
Tesla just posted their biggest quarterly loss yet, to the tune of $657million. Has Tesla ever posted a profit for 4 straight quarters?
https://www.cnbc.com/2018/02/07/tesla-q4-2017-earnings.html

Would Tesla even exist if it weren't for Uncle Sam injecting money into it? Which gets to my next question: why isn't Uncle Sam injecting money into every viable business, and isn't it unfair the gov. doesn't do this?

Elon Musk is worth $20 billion. I haven't kept up to speed on Tesla's gov. subsidies to the tune of billions, so has Musk paid of the government?
Click to expand...

No, they wouldn't exist. And no, they have never generated a profit for four quarters since going public in 2010.
 
MicroBrew said:
Don't know what the loss is from. I do know Tesla has had constant trouble delivering enough cars to market.

Once the big boys get cranking, I think Tesla will take a dive. Tesla just can't compete with the likes MB, VW, Toyota, Honda, GM and their established production and service abilities.

I think *part* of the appeal is just the sexiness of the Tesla brand, and their cars do look good.
Click to expand...

You get it. It is like the cult surrounding Apple. That Audi in the article looks nice.
 
According to a recently published study by Navigant research group, Tesla is currently dead last in the self-driving race, placing beside second-to-last Apple on the list of 19 companies. At the top of Navigant’s study were GM and Google’s Waymo, companies whose initiatives to develop and release autonomous vehicles to the public are ranked as being close to perfect.

https://www.teslarati.com/tesla-finishes-last-navigant-research-self-driving-tech/
 
You know how you can wirelessly charge your cellphone now.

Once the technology is there for your car/truck, it's game over, Elon will win.
 
Gregolian said:
Well, as of now they I THINK are the only 100% electric option on the road, at least in the US. I think

Even the much marketed Volt by Chevy is a hybrid isn't it?
Click to expand...
You can buy an all electric Nissan Leaf.
 
7437 said:
You can buy an all electric Nissan Leaf.
Click to expand...

The Bolt has been killing it

General Motors (NYSE:GM) said it delivered 2,987 Chevrolet Bolt EVs in the United States in November. It was the best monthly sales total yet for the Bolt -- and the eighth month in a row in which its sales were up from the month prior.

At least for now, the Bolt is America's best-selling electric vehicle, having outsold all other contenders last month, including all three Tesla (NASDAQ:TSLA) models



Listen to Steve Wozniak:

for everyday life, "we always drive the Chevy Bolt EV instead of the Tesla, every day," Wozniak said.


http://www.businessinsider.com/steve-wozniak-rants-against-elon-musk-and-tesla-2018-1
 
CEROVFC said:
You know how you can wirelessly charge your cellphone now.

Once the technology is there for your car/truck, it's game over, Elon will win.
Click to expand...
those cellphone chargers output 2 amps to a stationary object in proximity.

you wont be able to do that to a moving vehicle and if you could you wouldnt be able to power the drivetrain for sufficient speeds and if you could you would be too broke to use it.
 
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