Linked by Thom Holwerda on Wed 30th May 2018 15:38 UTC
In the News

Here's the dynamic that explains Musk's Twitter outburst: Tesla is clearly struggling to reach production levels that will justify its valuation. Musk has no facts with which to counter the media reports, and it is illegal for him to lie about these numbers. (Hype is one thing; lying to investors is another.) His Orwellian solution is to convince Tesla fans that what they are reading is not true. The stakes are high. Tesla's $1 billion-per-quarter burn rate makes it very likely that the company will need to raise a couple billion dollars in the fourth quarter of this year.

Musk literally cannot afford for investors to believe a negative storyline. Only his optimistic, visionary narrative will convince potential investors that Tesla is a good bet, rather than a bubble preparing to pop.

Nothing is more dangerous than criticizing Elon Musk, but the cold and harsh facts laid out in this article are very difficult to argue with, other than appealing to some vague sense of Musk wanting to help the planet or whatever, as if that negates Tesla rapidly running out of money and never meeting expectations or failing to keep its promises. We should all want Tesla to succeed, but the recent outbursts from Musk do not bode well for the future of the company.

Twitter randos who could never afford a Tesla might be easily swayed by Musk's Trumpian "boohoo the press hates me" nonsense, but the kinds of billion dollar investors Tesla needs will see right through it.

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RE[4]: The media...
by leos on Wed 30th May 2018 18:45 UTC in reply to "RE[3]: The media..."
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"a balanced story

More often than not, a perceived lack of balance by the reader stems not from media being inaccurate, but from the reader's own cognitive dissonance stemming from the uncomfortable facts they're being faced with.

That's why you don't see anyone actually disputing the facts presented here; people just flail their arms about screaming about "muh mediuh" without any shred of rhyme or reason.

What facts? The article focused 100% on the negative news around Tesla and 0% on the positive. That is not journalism. They don't discuss the massive short interest that drives negative stories. They don't discuss the fact that despite missing every target they set for themselves, Tesla is by far the leader in the EV space. They don't discuss the fact that Model 3 production has ramped up substantially recently. They claim that Tesla will need to raise a couple billion in the fourth quarter despite having no evidence for that claim. Heck they don't even discuss the merits or lack thereof of the story that caused Elon musk to cry foul on media coverage. There is no serious attempt here to get at any truth.

This article that you claim is full of facts is instead a cherry picked hit piece. By no stretch of the imagination is it a balanced examination of Elon Musk or Tesla's performance over time. Surely you realize that.

Edited 2018-05-30 18:47 UTC

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