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[8]: The media...
by leos on Thu 31st May 2018 17:20 UTC in reply to "RE[7]: The media..."
leos
Member since:
2005-09-21

So how long are you prepared to wait for Mr Musk to come true on his promises? And if (when?) he knocks on the investment money door again, would you be prepared to put your own money in?


The timeline is irrelevant to me. I will likely never own a Tesla because I have no need to spend that much on a car. However I drive a used Leaf EV and I am extremely interested in seeing EVs succeed in the market. Tesla has been critical to showing the rest of the automotive market that EVs are both feasible and desirable.

As for my own money, I don't invest in individual stocks on principle, so I will be investing in Tesla only indirectly via global market ETFs.

Reply Parent Score: 0

RE[9]: The media...
by Wondercool on Thu 31st May 2018 18:46 in reply to "RE[8]: The media..."
Wondercool Member since:
2005-07-08

You are avoiding the real question a little bit: millions of people shorten Tesla shares because they think he isn't going to deliver. Those millions of people don't do that because they think they can talk Musk down in the media, but because they genuinely think he won't succceed. You still seem to think he will pull it off.

When is Tesla a failure? You seem to think it never is and credit Musk with changing our mindframe about electric cars. I beg to differ: electric cars are inevitable considering fossil fuel prices will only increase over time. Musk just made it sexy.

I very much like to take down that reality distortion field that Musk has (it seems to be even stronger thanm Jobs ever was) and look at the hard cold facts: losing a lot of money can't last forever.

Reply Parent Score: 4

RE[10]: The media...
by leos on Fri 1st Jun 2018 01:59 in reply to "RE[9]: The media..."
leos Member since:
2005-09-21

When is Tesla a failure?


When it goes bankrupt. Which is something that the shorters have been predicting for 10 years and it never happened

Reply Parent Score: 0