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 ...
+. Hey a kid’s gotta dream! My dream was a vette. Got one at age 19. Very lucky confluence of time and place. Ate beans and bread and lived in a shack just to be able to afford the insurance.
Musk and Tesla have been in trouble with the SEC off and on for ages. Nothing new about it.
They’re getting pretty common now. Once the novelty and cachet wears off, they’ll fall out of love with them.
Saw 4 of them on my 2-mile drive to lunch, Philly burbs. Found myself behind one at a light on the way back to the office.
Green light. Green light. Green light. Honk.
Slow acceleration, middle finger to me, then cruise at 35 in a 45.
Swayed across the double yellow line, quickly corrected, then pulled off to the side of the road, no signal.
My guess is they were low on charge and trying to nurse it back to work/home. And failed.
Now that the taxpayers are not subsidizing him Tesla is having a bit of trouble make his business model work.
its what happen after a few years and the customers who’s defective/under-achieving vehicles don’t replace them with the same brand (or any electric).
battery decline and very low resale value (you have to replace the very expensive batteries on a used car or one reaching only a handful of years in age) is probably significant.
I’ve always thought that hybrids — combining battery as an efficiency feature ontop of a 100-year-old mature combustion technology was the far better path/solution than trying to use an immature and insufficient technology and over hyped ‘fad’ one (all electric)
Look into the idea that the batteries use a HUGE amount of CO2 in their manufacture (carbon footprint duuuude....)
with their high turnover (batteries need to replaced after every few years) -— the so called green car for its lifespan creates more CO2 than a modern combustion engine car
Batteries with chemicals made in china where the Carbon cost is out of sight and not likely to even be efficient (and Tesla and the other scammers wont ever mention THAT)
The factory is NOT a great asset. It was designed and built largely by people with no auto-production experience, but who just KNEW they were so brilliant (as tech guys, after all) and this car stuff was so simple it would be a cake walk.
The factory has continually been plagued with the sort of problems that occur when university grad students try to do something with real economics involved.
When GM acquired Hughes, everybody crowed about how this “rocket technology” would revolutionize car building. It did no such thing, and was a failure as a corporate merger.
Privately, Hughes engineers marveled at what the auto guys did and told them “What you guys do is really hard!”
Musk shows us every time SpaceX makes a launch that rocket science is way easier than building cars.
The automotive business is the hardest business in the world.
Think about this: Would you want to buy a house built by guys who had never done it, but because they could right code they just KNEW it would be easy?
Yeah, I thought so.
Does There exist any evidence what so ever that the British guy who tried to rescue the kids trapped in a cave was in fact a pedo?! Or is Desert Rhino a fraud clown?!
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