Tesla saying they made a profit is like saying you got a Christmas bonus by selling your television

"notsomethingstructural" (notsomethingstructural) 10/21/2020 at 23:10 • Filed to: None

2

8

eventually you run out of televisions

ranwhenparked > notsomethingstructural 10/21/2020 at 23:37

2

Which is kind of the General Electric school of revenue generation - keep selling assets until there’s nothing left sell, and worry about what comes after that later.

SBA Thanks You For All The Fish > notsomethingstructural 10/21/2020 at 23:50

1

It is hilarious when you think of how profitable Porsche and BMW were when they were doing just a fraction of Tesla’s half-million car run rate.

The truth remains that this is just terrible public policy playing out in the equity markets.  Look out when the market figures out this is just a car company, not The Second Coming.

superdave847 > notsomethingstructural 10/21/2020 at 23:51

3

If the manufacturers switch to mild hybrids and EVs, how will Tesla get carbon credits to pay for manufacturing of the cars with poor fit & finish?

bison78 > ranwhenparked 10/21/2020 at 23:59

0

No. The credits were never assets to be used in the business.

It’s more like an insurance company selling insurance to other insurance comp anies. Reinsurance is a major business.

notsomethingstructural > SBA Thanks You For All The Fish 10/22/2020 at 00:07

1

I was talking with HHFP on another article, and in countries where a lot of people are replacing their first EV’s now, Tesla brand loyalty is exceptionally bad by any metric. 

notsomethingstructural > superdave847 10/22/2020 at 00:12

0

Killing the PR department probably

SBA Thanks You For All The Fish > notsomethingstructural 10/22/2020 at 06:29

0

It’s weird— the “subjective” measures always point to “the most valuable brand” and “intense customer loyalty”... bu t then you look at objectiv e measures like the Power reports, CR actual field data and owner surveys— and find that a lot of people got tired of crappy quality, indifferent service and abusive warranty policies.

And, it’s probably telling that Model S sales are dropping and the Taycan is now Porsche’s best-selling model in North America (shockingly)... one assumes that the Early Adopter crowd is now over sampling Porsche’s wares.

Watch the trend in Model 3 sales in the US. My prediction is still that the Model Y will erode the hell out of Model 3 in established markets. I keep saying this but that model erosion within the brand is a terrible leading indicator of market health.

Tesla grew nicely, but it was all geographic expansion NOT market growth. It’s two different things.

notsomethingstructural > SBA Thanks You For All The Fish 10/22/2020 at 08:36

0

There’s a huge difference between “defending Tesla” and “defending the necessity of EV’s”. Thus far Tesla has really been the only one doing the latter in the US, so they’ve reaped the benefits of the former. But  once other brand offerings come into play with similar acceleration range price etc people will realize the benefits of EVs aren’t tied to Tesla, that’s when we’ll see what changes.