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The case against Tesla

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Ashlem, Feb 13, 2015.

  1. Ashlem

    Ashlem Senior Member

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    The case against Tesla, and why success may be harder than ever | Motoramic - Yahoo Autos


    Sounds like a hit piece paid by NADA (National Auto Dealers Association) on Tesla to me. I still find it ironic and sad that "stealerships" truly believe people enjoy the car buying experience.

    If they're so sure Tesla is going to fall flat on their face, why not let them sell cars directly to people instead of fighting them tooth and nail in court?

    I don't know about you, but I have yet to meet one person, in real life or online, that truly likes haggling for a car. No matter how good the deal, I can't help but wonder if I paid $1000 more on my car than my neighbor with the same exact car did, because he just happened to buy at the right time when a salesman was desperate to make the sale.
     
  2. bisco

    bisco cookie crumbler

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    wouldn't the last sentence describe most exchange listed corps? it's all about whoever wall street is in love with, not the stock price and valuation.
     
  3. JimN

    JimN Let the games begin!

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    There is plenty of money to be made in the volatility of TSLA. If you have the money and the conviction that TSLA will fall then sell short. If you are holding the stock and want some income sell a call. If you are looking for more volatility check out the oil patch.

    Investors looking for dividends shouldn't be in TSLA. Those looking for appreciation and bought early got it 10 fold. For any stock the key is knowing when to get in and when to get out.
     
  4. hill

    hill High Fiber Member

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    just like musical chairs . . . .
    .
     
  5. bisco

    bisco cookie crumbler

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    yep. it's a great game if the music stops at the right time.;)
     
  6. wjtracy

    wjtracy Senior Member

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    We don't know what the end game for TSLA looks like, if it comes down to that.
    Maybe GM buys it and the stock doubles ...who knows where its headed.

    (better yet, say Apple buys them out...happy ending indeed...and that could make sense too)
     
    #6 wjtracy, Feb 14, 2015
    Last edited: Feb 14, 2015
  7. mikefocke

    mikefocke Prius v Three 2012, Avalon 2011

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    Several very negative articles or commentaries on TESLA's financials have followed the publication of their latest earnings reports. Even comparisons to DeLorean!
     
  8. bisco

    bisco cookie crumbler

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    a lot of haters hoping to take them down.
     
  9. bwilson4web

    bwilson4web BMW i3 and Model 3

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    A lot of previously burned short sellers too.

    Bob Wilson
     
  10. bisco

    bisco cookie crumbler

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    good point, and probably some current ones, knowing the collision that is wall street.
     
  11. mikefocke

    mikefocke Prius v Three 2012, Avalon 2011

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    But have you read the quarterly report?

    The articles or commentaries weren't so much on the product as they were trying to see how the numbers reported would affect how much cash would be burnt in getting productions to a certain level, how much effect other car makers planned similarly priced/capable offerings would have and what the impact of the recent poor performance in China and the "cultural" problems there would have on the 5 year out company prospects.

    If you don't have the right numbers now, the only way to justify the current stock price is to have enormous confidence and optimism for the future.

    Is it a cult or a real company?
     
  12. bisco

    bisco cookie crumbler

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    all speculation. show me a company on wall street that is built on earnings, and whose multiple reflects reality. they said the same thing about amazon on 60 minutes a hundred years ago.
     
  13. dipper

    dipper Senior Member

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    As much love as Tesla gets, their quality is not that good. 15% drive motor failure rate? Traditional car companies get killed with 1% failure rate of ICE.
     
  14. bisco

    bisco cookie crumbler

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    where does that 15% info come from? who's making their motors?
     
  15. Zythryn

    Zythryn Senior Member

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    Early motors were creating an unpleasant noise. Tesla replaced these and had their engineers pour over the causes.
    More recent motors have not exhibited this noise.

    If you call an annoying sound that doesn't reduce reliability, performance or economy a failure, I wouldn't be surprised by that number.
    Actual failures where the motor stopped working are almost non existent.

    Just look at the number of Tesla owners who say they would buy the Tesla again. Highest of any car.

    It is a young car company, however, they are learning very fast and improving their car very fast.
    Some of the big guys have taken notice and are responding.
    Some are doing the minimum they need to to get by.
     
    bwilson4web likes this.
  16. mikefocke

    mikefocke Prius v Three 2012, Avalon 2011

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    1% early failure rates are enough to attract class action lawyers. I've followed a class where a less than 10% failure rate over 10 years resulted in a settlement.
     
  17. Zythryn

    Zythryn Senior Member

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    I'm not arguing that. Do you call a motor making noise, a failure?
     
  18. bisco

    bisco cookie crumbler

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    no. that's why i don't like flamers.
     
  19. GregP507

    GregP507 Senior Member

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    If you watch Shark Tank, or even if you don't, the pattern has always been for the pioneer to break ground with a new product, and then for others to use their financial muscle to take over the market. Big Blue tried it on Apple in 1984, but Steve Jobs was able to keep Apple alive long enough to get a few steps ahead of them. There are no guarantees for Tesla to be able to stay ahead of GM.
     
  20. hill

    hill High Fiber Member

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    Don't know why Tesla even bothered to try .....

    [​IMG]

    .... everything's gona eventually fail anyway ... why bother .....

    might as well just give up now ...
    .
     
    Trollbait likes this.