Posted on 04/09/2019 7:02:45 AM PDT by KevinB
Summary:
1. Terrible first-quarter deliveries data was reported.
2. Cash and cash equivalents are shrinking.
3. The CEO's eccentric and whimsical behavior (and SEC scrutiny) taking focus off of running the business.
4. How long has Tesla really been in trouble?
Investment Thesis:
Despite producing and selling approximately 600,000 vehicles (including in 1Q19), Tesla (TSLA) has been unable to secure a path to financial safety. Using a relatively simple methodology, The Altman Z-score, plotted quarterly since 2010, shows us just how perilous the company's situation is.
(Excerpt) Read more at seekingalpha.com ...
maybe we should pass a Law mandating that ALL Public Emplotyee’s Nationwide use only Electric Vehicles for their commute to and from work? This would spur sales tremendously and help them Save the Planet.
Amazing how he could do no wrong until he committed the most grave mortal sin. Pointed out a British pedophile homo during that cave rescue.
Within weeks he was under SEC investigation, and he has been harassed and abandoned by the government types who liked him before. When he identified himself as a guy who would point out a pedophile, the DNC was like a vampire shown a cross. They want him destroyed.
His rockets are very cool and made nasa look retarded. That didn’t help his cause either.
The smart move for Toyota is to let Tesla collapse. Then sort out what’s left. Take their patents and technology...let their warranty obligations go.
“That’s why I think Tesla may become a takeover target. ...”
You likely have something there.
The factory is a great asset — hard to purchase and build something similar in any reasonable amount of time.
The DeLorean automobile enterprise died, too.
And so did the Tucker automobile dream.
It takes a LOT to get started in building cars. Much easier to just fold in the absence of a government subsidy.
I saw a youtube video that tore down electric cars from various manufacturers and compared their quality and viability.
The Tesla won big on motors and batteries. They lost big on the actual car they are attached to.
Here it is: https://www.youtube.com/watch?v=Lj1a8rdX6DU
Bottom line is that they are really inefficient builds. That is, the body is much more expensive to manufacture than it should be. And they get right down to the details.
The kids love ‘em.
I heard my duaghter and all her freinds talking about how they wanted to get a Tesla just the other day.
19-20 yrs old age group.
Is Tesla still get US Govt subsidies? Or did that end?
Baring a take over by someone like Apple who is working on a car project and has the cash to acquire them and knows how to operate a profitable business, Tesla will be the Delorean of the 21st Century a novel concept run by a eccentric founder who ultimately goes out of business.
I don’t think he called Unsworth a homo, only a pedo. The libel suit against Musk is currently pending. Musk apologized to Unsworth and Musk’s attorneys have now requested dismissal of the suit asserting Musk’s First Amendment right of free speech (which doesn’t have a prayer of succeeding because there is no government action involved). Since truth is an absolute defense to libel, Musk would be asserting truth of the allegation as a defense rather than apologizing and making spurious free speech claims. Musk has attracted the negative attention solely because of his unstable and reckless behavior.
Do subsidies ever end?
The free market is the only true arbiter of the value provided by a product. The market seems to be speaking, and barring government interference, that should be the last word.
Acquisition is a good possibility, but I’d look for someone like Daimler AG to buy Tesla, and roll it into the Mercedes Benz line, as well as applying EV technology elsewhere in their portfolio.
The Chinese, not Tesla, will bring EV technology to small inexpensive vehicle markets. Musk just doesn’t know how to do it.
Good point.
Most of these articles come from people with a vested interested in seeing Tesla fail. I despise short selling and wish it was illegal. Easy to stir up fear, bad rumors and crap to drop price. It affects real people when companies can’t get loans due to the vampires. Short selling is evil by nature, gaining from misfortune.
Smoking pot on line probably didn’t help much..
IMO your comment makes sense. Toyota has less whackoism involved in their electric vehicle thinking, and thus have a better chance at making the company actually workable.
They’re getting pretty common now. Once the novelty and cachet wears off, they’ll fall out of love with them.
Musk didn’t inhale.
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