Posted on 08/22/2019 4:04:11 AM PDT by Lurch Addams
Of all the forms of hagiography of Elon Musk practiced by some in the financial press, the proposition that Musk’s Tesla has somehow been a financial success is the most ludicrous. Excluding the creation of electric cars and solar panels from the analysis and performing straight financial number-crunching, one can only come to the conclusion that Tesla has been a failure.
Musk’s greatest skill is in raising capital, but in the past five years that new capital—in excess of $20 billion—has led to greater losses and a much, much more levered balance sheet for Tesla. No value is being created for Tesla shareholders. It’s just a sea of red ink and constant dilution of shareholders and additions of new creditors.
(Excerpt) Read more at forbes.com ...
But think of all the virtue signalling the drivers have.
That said, I'm still not convinced of the advantages an electric car might bring other than at the drag strip. Musk's main engineering feats seem to have been separating the smokestack from the coal-powered car, and the money from the wallets of taxpayers. In my travels, I've knowingly seen five Teslas on the road. Two of those were on trailers.
This opinion basically comes from Forbe’s blog section.
It should be posted in chat.
Moody’s upgrades Tesla (TSLA) to ‘Stable’ over Model 3 efficiencies, adequate liquidity
https://www.teslarati.com/tesla-tsla-moodys-upgrade-model-3-efficiencies/
“advantages an electric car might bring other than at the drag strip”
But who wants to see a car zoom off without making big noise and shooting flames?
Recall that the Indie 500 and maybe formula 1 banned turbo powered cars. They were faster than the piston cars but boring to the ears.
He should stick to space travel. Or flying cars. Still waiting by the way.
Their “stable”, our (taxpayer) liquidity.
I see Tesla cars on the road daily in southeast Pennsylvania. Plus the most I’ve ever seen of Prius, BMW and Outback. Lib car concentration area.
I’m no financial whiz but I would’ve thought the number represented in the category “operating return on average assets” should be positive, not negative?
The article is written by Jim Collins, a Forbes columnist.
https://www.forbes.com/sites/jimcollins
“Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.”
https://www.latimes.com/business/la-fi-hy-musk-subsidies-20150531-story.html
But but but what about all of the charts that show the operating cost overtime or so much lower. But but but won’t the company exists if I buy one and I’ll be able to use those operating costs over time? Want to be somebody that I can talk to about fixing my Tesla in the future? But but but what will I do?
But but but what about all of the super smart people on freerepublic who love the Tesla what will I do? I’m just a nail dragging moron and I don’t know anything.
Isn’t Forbes now a Chinese blog?
(Not entirely joking)
True, but so what?? If he wins on even one of the three, he wins big time. And "public-private financing" is almost as old as the United States...canals, railroads, commercial air travel, and on and on and on.
SpaceX is kicking ass. So Tesla goes belly up. Musk still wins.
Why? Because Volkswagen has a very clear vision of electric cars with their new MEB and PPE electric car platforms, and Toyota's current TNGA platforms can easily accommodate an electric drivetrain.
I agree with you. Clearly Musk is a genius and this author instead of just lambasting the dude and the company could suggest what the guy should do instead to add value. Where I live, people love their Tesla’s. I love Honda the same way.
I follow it closely for a lot of reasons. There are a lot of parallels between Progressives, Apple, and Tesla.
They all have a Rotten Leadership, Punch Drunk Fans, Plenty of Cash, and no Discipline.
Toyota makes cars that run, unlike Volkswagen.
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