Just sold my Ferrari to buy more TSLA

Instead of selling cars directly to NJ consumers, Tesla should sell one-car franchise licenses. As a franchisee they can opt to purchase a vehicle at which point their license agreement is discontinued.

 

Shareholder meeting from last week.
[ame=http://www.youtube.com/watch?v=oAeetyfnHfk]Tesla Motors, Inc. 2014 annual shareholder meeting - YouTube[/ame]

 

TSLA is just a personal bank account for insiders like Elon Musk to peel off shares whenever they need money. You can have a bad corporation with a good product, at any time they can increase they float as they've done in the past. Tesla cars are not the future either, because they don't solve anything. How does selling 100k+ luxury cars solve the problem of congestion and falling apart roads? All these tech companies promise utopia and gamechangers yet we never see anything materialize. Maybe tesla can increase earnings by doing what all "tech" stocks do, sell advertisements. Commercials can be piped into the cabin via the touchscreen.

 

Have you driven one?

 

TSLA's mission is to solve congestion and falling apart roads?

Who knew?

Why are they a bad corporation? Why is GM or Ford or Ferrari any better?

Care to elaborate on your point?


Kai

 

I'm not comparing them to other corporations. I also stated you can have a good product but be a bad firm. TSLA has abused various government subsidies to stay afloat(obama bucks, Cali green credits) while creating a personality cult around its leader Elon Musk. Musk's other projects also deal with government contracts(SpaceX).

How many other states bribe rich hippies to buy TSLA product's with taxpayer financed rebates?

My comment regarding congestion, was not that it was TSLA's job to solve them. But TSLA is claiming to solve a pollution problem that ignores the fact that government created it in the first place by dismantling public transportation 100 years ago while subsidizing a road network that is now falling apart. Tell me do you see a shortage of cars on the road? Is another car producer regardless if they are "green" or not, really going to change anything?

Elon Musk who was broke 6 years ago, and claims to be environmentally conscious has no problem living in a $20mil mansion paid for by US and California taxpayers. The funny part is, 20mil is probably more then TSLA has earned in its lifetime of none subsidized profit.

TSLA is no different then the atypical "tech" firm. Create massive hype around a supposed gamechanging product, get wallstreet onboard to do their extensive PR and selling, list on public markets and trade at an obscene valuation.

The ultra high multiple of none existent earnings allows you to use shares as currency. That's how they were able to repay government loans without actually making any money. The same way Zuckerberg was able to use FB shares as currency in acquisitions. It's a game of musical chairs, you peel off shares unto the gullible and greedy bagholders everytime you need liquidity. The share market is a bank account for company insiders, it always has been. Read the book Supermoney. The guy trading his F430 for TSLA is the bagholder. TSLA shares can be produced ad infinitum as long as the bid is there to absorb supply.

In short TSLA share's are a sophisticated form of the classic pump and dump.

 

What's that got do with anything? The product is just a hype machine to allow TSLA shares to trade at obscene valuations. This allows insiders to use the stock as a personal bank account, peeling off units everytime they need $$. Change the car with any tech product of the last 10 years ie twitter, facebook and it's the same thing. You ever wonder why everyone is so eager to go "public?" If TSLA was private, they would have a hard time sourcing money without actually having to earn it. On the public market's they are able to tap into a source that has trillions of liquidity via a well oiled hype machine.

 

This is a fairly narrow and alarmist point of view on this issue. TSLA is a good buy today - stock and car.

The purpose of stock is to raise liquidity. "peeling off shares to source cash" is the very reason the stock market exists. You're presenting the concept of publicizing shares to raise capital in a cynical way.

The fact that it is not profitable is irrelevant. Companies growing at 150% YoY are not trying to reach profitability. If you see the financials, they are over investing in COGS in order to meet demand projections.

The insiders getting wealthy in the process is a byproduct of the american system - wall street is corrupt, not exactly a news flash.

TSLA was never claiming to solve a transportation infrastructure crisis. It is a marketing position that electric is superior to gas - they make a compelling argument here. The fact that roads suck and public transport is under-invested has little to do with TSLA's mission nor are they connected. Its like criticizing subway's "healthy" marketing campaigns because it does nothing to address the obesity crisis.

I can't help but ask: did you get personally hurt in the market by companies like this? or have a close relationship to someone / something that did?

 

Tesla stock 2/24/2014 $217.65
Tesla stock 2/24/2015 $204.77

 

I think 2015 will be the year we see Tesla’s house of cards unravel. They have claimed they built and sold 35000 cars in 2014 but the best research from car registrations and overseas delivery shows at best, 32000 were delivered. Quality control issues continue to plague the Model S and while the early adopters are more forgiving, these issues would be intolerable on a car built for the masses. The problem is while Musk is definitely a visionary, his quest to make his cars unique from non-ev cars is causing havoc and time delays with Tesla Motors. Three very visible examples are the door handles, rear tires on the Model S and the falcon doors on the Model X. Everyone knows the cool handles on the S pops out but there is a reason why no other company makes their door handles that complicated. A door handle should function properly thousands of time for the life of the car without issues. Read through the tesla forums and you’ll see owners that have had plenty of issues and multiple door handle replacements. Musk decided at the last minute that it would be cool to have wider rear tires on the S. Guess what? With no time for proper real world testing, the inside of the wider rear tires were getting shredded within 10,000 miles. Finally the falcon doors. I was at an event and spoke to a Tesla employee about the doors. I asked him what the pros and cons of the door and the only answer he can give me was that they were cool. This desire for the cool doors is causing delays for the X and if the handles on the S are any indication, these doors may require frequent, expensive service. This is probably only known within the Tesla world but a recent software update is causing the 85D model to shut down unexpectedly. If they continue to run an automobile company like a dot com company, Tesla may very well crash like one from the 90s. If you can combine the current specs from a S with the reliability of a Nissan Leaf, I would buy one in a second. It seems like they are very far off from that mark.

 

Bank of America is predicting a massive Tesla collapse - Yahoo Finance

 

That is not new news.

Forbes was counting the ways that Tesla is over valued all the back in September 2013:

Tesla Is Overvalued: Let Me Count The Ways - Forbes

The most salient point in that from my point of view is this one using the market values of the mentioned marquees at the time of the writing:

Tesla has some brilliant ideas in their cars and hopefully improves the automobile as technology and industry for their efforts. The stock still appears over valued to me.

 

I drove all of Teslas line up and felt like I was driving a really nice golf cart. I felt totally uninspired.

I hope they sell a bunch of them, cause it's more gas for me!

 

When the market finally wakes up to an artificially deflated oil price and the Model X starts to get to customers they will be praising Musk's genius again.

When people go on the attack with regard to Tesla the first thing I do is research their affiliations, financial backers or portfolio. Invariably they have links to oil directly or indirectly and/or the big automakers. Their motives are not hard to research and understand.

Musk has spent his life proving doubters wrong. Long may it continue.

 

I think Tesla will be better valued as a technology / battery company. I wish them well.

The OP gives the impression that he is HEAVILY investing in Tesla. Not being diversified is the kiss of death. I worked for BOA for many years (don't hold it against me-I only worked there and have since left) and half of my IRA stayed in the stock. The general feel was the stock and company was bullet proof. Well, we all know how that turned out. At least I did not have Wachovia stock!!! I have been taught the cost of not being diversified the hard way.

 

When the Apple car is launched , tesla is gonna go down .. Just a guess

 

hopefully the Model X will be more reliable than this guy's Model S

Out of warranty concerns about Tesla - Page 3

If you read through the many threads on that site, his experience is not unusual.

 

He left in May. I bet he doesn't come back.

 

Do you really think the price of oil has much to do with Teslas desirability to its target market? I don't.

Also oil prices are manipulated the world over and will likely always be so its always artificial.

While Tesla might be viewed as a tech company, their product right now is cars. Or you could say its tax credits... hum..

Anyway, the car business is predicated on a recurring revenue stream.

Questions I have which I don't know the answer:
How many current Tesla buyers are likely to purchase a Tesla as their next car?

How easy is it to finance one of these things? Financing is great for a manufacturer because they have people coming back at a predictable time schedule.

How good will the SUV be? If its really good I could see them actually making a lot of sales. At least one time sales.

How about the BMW 3 series level car?

Bottom line to me is can they get repeat business. If yes, then they probably make it. If no, then they won't last.

 

Tesla is a very quirky company to deal with. If you own a Tesla and have a favorite body shop, they will never be able to order parts from Tesla. Only Tesla certified shops can order them You'll have to order the parts yourself! How's that for quirky.

Claims are also handled in an unusual manner. You can call Ferrari dealers for quotes that will justify a fair total loss settlement but Tesla showrooms are full of college kids who have no clue about anything except selling cars.

TESLA DIMINISHED VALUE AND LOSS OF USE CLAIMSTHE TESLA DIMINISHED VALUE PROJECT | TESLA MOTORS AND AUTOMOBILE DIMINISHED VALUE IN ALL 50 STATES 772-359-4300 has a good write up about dealing with that company. I would like being able to use the HOV lanes every morning and afternoon but dealing with the company seems like it would be very frustrating.

 

Tesla was a scam for insiders to get filthy rich. Public IPO's are all about attracting bagholders.

Honestly all these "tech" companies are just recycling stuff that already exists. Why doesn't someone develop a self-repairing road, or road material that lasts? The last thing we need is more cars...

 

If you find the most popular rival petrol/diesel $100,000 sedan on the market I will be able to find an internet forum of owners moaning about it.

That is nothing new.

 

"Cars" use Internal Combustion.

"Transportation" uses anything you want.

 

a very common tactic among tesla owners is that instead of demanding tesla motors improve and address the issues, they are very quick to deflect anything and everything. When any issue is posted, the immediate responses from owners is to state how a ICE car they owned in the past did the same thing so tesla should be excused. the 12 volt batteries on the tesla dies constantly, owners will chime in about how many times the 12 volt batteries in their ICE left them stranded. many owners have had their drive units/batteries replaced multiple times and sure enough, someone will post how the engine in their audi seized within 5000 miles. it's rather pathetic. if anyone want's a laugh, read this thread.

Do we need a Tesla "Snuggie"?

so the owner spent 100K on a car and in order to drive it for a reasonable distance in the winter time, you can't use the heat. their solution is to bundle up to stay warm. think about that for a second.

 

I got no problem w old car tech. I love my 67 E type, 60 Caddy, Ford GT, Aventador etc

My only interest in electrics is selling charging stations for them