Posted on 04/12/2017 3:49:38 AM PDT by IBD editorial writer
Motor City: The big news in the auto world was that Tesla topped the market value of General Motors. That means the car company that gets massive taxpayer subsidies is now worth more than the car company taxpayers bailed out a few years ago. Welcome to the world of crony capitalism.
On Monday, Tesla's stock closed at $312.39, which meant the startup electric car company, which sold a grand total of fewer than 80,000 cars last year, was worth more than GM, which sold 80,000 Chevy Silverados every eight weeks. (Tesla's market cap edged below GM's on Tuesday.)
Is this a case of irrational exuberance gripping investors? Or the electric car version of the 1990s internet bubble? Is the future of Tesla really that bright? We tend not to second guess the wisdom of the markets to get things right, at least over the long term.
But it's worth noting that whatever Tesla's growth potential, at the moment the company is heavily reliant on taxpayer support.
(Excerpt) Read more at investors.com ...
Sprint and Carrier too.. o how they suffer.
>>Can your truck get to 60MPH in 2.37 seconds?<<
The better question: SHOULD your truck be able to get to 60mph in 2.37 seconds?
If you want to see a lot more dead teenagers, answer “Yes” to that.
Tesla is a stock bubble.
Try the new DEMON!
It'll yank the front wheels off the ground at launch!
Hillary says, “Who gives a rat’s patootie??!”
Pay the man, Shirley!
But you DID get a spare tire; right?
People have asked me; "Why don't you go to the 500? It's just down the road from you."
I get enough thrills driving 465 where I'm IN the action!!
Do teens even drive these days?
Take away subsidies and see how they do.
After careful consideration of your comments I think you should consider changing your meds. Whatever you are on is messing with your brain. I could go into detail regarding market share, production capabilities and profitability but it would be wasted in your current state.
Well said.
You just hit on the two reasons why electric cars have never become mainstream, and most likely never will.
Don’t confuse ignorance with insanity.
There is another issue with Tesla’s business model that hasn’t been much discussed: their rejection of the dealership system that is a requirement for other manufacturers. Here in PA there isn’t any real support system. I have seen Teslas on a flatbed being trailered by Ford 350’s. I know a guy that owns one and it has needed service 3 times, all for software related issues. The first two times it was trailered to another stat and back 2 weeks later. The third time Tesla flew a tech guy out to his house all the way from CA. Knowing that Tesla did not make a penny profit, and probably lost money at the point of sale of the vehicle they are now out even more. It’s an insane business model.
>>Do teens even drive these days?<<
You apparently don’t live in flyover country or, if you do, you must be in the center of one of the larger cities. Outside of those, a driver’s license is a rite of passage.
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