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[6]: The media...
by leos on Wed 30th May 2018 23:00 UTC in reply to "RE[5]: The media..."
leos
Member since:
2005-09-21

"despite missing every target they set for themselves


That is one huge 800lb gorilla in the room to despite
"

Not really. What matters is results. Elon sets insane targets and routinely misses them. Yet the end result is far outpacing all other car companies in EV technology and deliveries.

Other car companies set modest EV targets and either meet them or fall short (inventory shortages for both Bolt and Ioniq).

Which approach is better? Well the results don't lie, Tesla is currently the leader despite getting a lot of flack for missing targets.

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