Posted on 02/08/2016 1:16:29 PM PST by bananaman22
Elon Musk is a genius and a visionary who is almost single handedly changing the future of mankind through three different industries at once. With that said, it’s not clear if investors can easily benefit from any of that.
Tesla, the company most associated with Musk is in a downward stock spiral over the last month which has taken it to new 52 week lows. There are many reasons for that downward spiral including concerns about market valuations and weak oil prices (which make Tesla’s correspondingly less attractive as a substitute versus conventional cars). But for the first time, Tesla is also facing a new threat that may be frightening away some investors; competition in the electric car space.
Tesla has been the only real electric car maker since its inception as a company. It’s true that Nissan offers the Nissan Leaf, an all electric car, but that vehicle only gets around a 100 miles of range, compared with 270 miles for a Tesla. For the many Americans that drive 50 miles each way to work or who sit in traffic at rush hour, a 100-mile range is simply too perilously close to running out of power for comfort. As a result, the Nissan Leaf has never really caught on with more than a sliver of the population.
(Excerpt) Read more at oilprice.com ...
Tesla translates to mean “car no go far”.
I’ve posted on here many times I thought it was a slam dunk short.
But also qualified that by saying NEVER bet against a regime affiliated crony capitalist.
So all we do is sit and watch it.
Tesla just needs another “loan” courtesy of Obama.
With P/E ratios like they have they need to execute and deliver flawlessly, any possible negative view will tank the stock.
BMW has gone pretty much all in for an electric car range of products.
BMW has historically done several things wisely. For example while GM was trimming brands, BMW (like Toyota, Nissan) introduced a new brand Mini, and grew it.
Other luxury brands are also introducing electric models, to compete with Tesla.
Fuel prices may postpone these contests. Maybe they will not all survive. But I would be on BMW.
Tesla’s problem is $30 bbl crude and $1.40 gas.
They always have.
Elon Musk is brilliant, but two things: (1) 5 billion USD in government subsidies came his way through cronyism, and (2) lots of brilliant people out there. They don’t have the government teat to suckle (and donate back to).
I previously posted both LAT and NRO links to the $5 billion subsidy claim. Another poster here thought the LAT was too left to be reliable and the NRO had not been reliable recently. He refused to acknowledge that the “brilliance” on display had something to do with the subsidies.
There is a strong element of hero worship in the Musk circle. Great for the stock price, until it isn’t.
Without the billions from government, Elon Musk would be considered a daydreamer, at best.
Just fill the trunk with diesel cans, put on a trailer hitch, and get an Ingersoll Rand portable generator. Almost unlimited driving with your all electric car. http://www.washair.net/Sales/49.html
Tesla's problems are batteries and an insatiable cash burn rate.
Calculating battery life and its replacement costs are an uncertain result. Tesla offers a “guaranteed battery exchange” for the 85kw pack which essentially is an insurance plan. For $12,000 up front when you by the car, you could have the battery replaced at 8 years. However, you will be getting a refurbished battery and the life of that battery would be uncertain. A new 85kw pack will cost $25,000 today with talk about lower costs later. How much lower is uncertain. Also, as the battery life declines, what type of situation is the owner going to find when he wants to trade in or resell? I am sure that the answers to my questions translates to one hell of a wallop to you wallet. And the bang for the buck? You are burning lots of money to save on gas.
“With P/E ratios like they have they need to execute and deliver flawlessly, any possible negative view will tank the stock.”
Vehicle fires are ok though;)
SpaceX is probably more likely to be useful than NASA ever was, but that’s obviously not saying much. The only thing they should ever be paid for is if they make defensive satellites which can shoot down enemy nukes or satellites which have the capability to level Mecca, and I’m guessing they aren’t doing either.
Tesla is a completely worthless company which only continues to exist because of government. Electric cars will never be feasible.
And since Elon Musk is really good friends with Soetoro, he should probably be rotting at the gallows as a traitor should instead of being contracted to build his worthless little products.
Musk is a crony capitalist huckster. None of his businesses are viable without massive government funding and special treatment.
And a car that sells for eighty grand. Not for the average Chevy buyer who might care about gas prices. The Tesla buyer and market is the same market as those who favor eight mile per gallon land yachts and hummers. They are unfazed by high gas prices.
“Electric cars will never be feasible.”
You mother earth killer!!! :-P (kidding)
They’ll be feasible once we work out the simple problem of energy storage. There’s obviously some kind of conspiracy seeing that this hasn’t been done economically yet. My guess is big oil or Bush has the solution. :-P
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