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FWIW, I find the animus (based on the posting 'glee' at their issues) on our forum towards Tesla surprising.
I totally agree, Jeff.

For years people have ignored, or never fully understood, the facts surrounding Tesla, but rather repeated what they had heard but didn't really understand, which was about 10% truth mixed with 90% misdirection.

Take, for example, how people believed that Tesla was losing money on each car they built and sold, when, in fact, that was never the case. What was happening was that they were investing more money in the future of their company (for example, by building the Gigafactory and expanding their showroom and supercharger networks) than the cash they were generating from car sales. Here is an analogy.

A kid has a fruit juice stand. It costs him 70 cents to pay for the fruit juice, cups, lids and straws. He sells each cup of juice for $1.00. He makes 30 cents per cup.

He wants to grow his business, so he buys the parts to build a Giga juicer from Acme appliances for $40. Without the juicer, he was only able to make 100 cups of juice per week. With 100 cups of juice sold with a 30 cent profit per cup, he made $30. But he spent $40 on the Giga juicer, for a net income loss of -$10. The people who didn't like the kid selling juice on the street corner decided to tell people that the kid lost $10 selling 100 cups of juice, so they claimed the kid was losing 10 cents for every cup of juice he sold. Well, that was technically true, but totally missed the point, and the basic understanding of how to successfully grow a new business by borrowing ($40 on the kid's credit card) for investments (the juicer) which will pay off in the long-run.

Soon, with the new Giga juicer, the kid will be able to make 1000 cups of juice per week, and keep selling them for 30 cents profit per cup, but now he will NOT have to keep buying a new juicer, because he will now own one. The kid will do very well after his initial capital investment period (buying the Giga juicer) is over, and will soon be off to making 1000 cups times 30 cents profit per cup = $300 of profit per week.

Of course, this oversimplifies everything, but the general idea is the same. How people refused to realize this simple idea of what Tesla was doing blows my mind.

Also, in many other ways, people were eager to be misinformed about Tesla.

Anyway, Tesla just had a great quarter for revenue, and they expect that was the last quarter where they will spend more money (growing their business) than they took in. One more quarter, and they should be profitable from every way of measuring their business. Look out! It really seems as if they are going to pull this off. Wow.

Here is a video which is absolutely hilarious about the rough ride which Tesla has endured from the fear, uncertainty and doubt that has been spread about their company. I am thrilled to see an EXTREMELY innovative high-tech American company do so well. I do hope they grow up and mature in certain ways they lacked previously, because, someday after they have matured and ironed things out, I am totally open to buying vehicles from them.

 

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It has to be at least the third time I have seen this same video clip used for something. One was a hospital finance department and the other was accountability on the fire ground. I'm sure if you do a YouTube search you will find even more.
 

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Good lord even if Musk misrepresented sales data https://finance.yahoo.com/m/baeb55ab-e2a3-3c95-8087-7a32e539c922/the-revenue-growth-rate-that.html they are still burning through cash that they cannot spare. We will see but to me he is a snake oil salesman. Lot of folks are emotional about this guy and are going to lose money but hey makes me no difference I am just watching and waiting for all of the cards to come falling down.

He has no logistical or dealer service network and a supply chain that is in a constant state of turmoil. Wait until the recalls start then he will be lost for words. Competition is coming like a freight train and he is going to get hit hard by it. Most people were smart enough not to buy his cars but to lease them. The residual is NOT what they were planning. Just some other hits they will be taking in the future.

Never get emotional about money--Rule #1, Rule #2 and Rule #3.....
 

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Good lord even if Musk misrepresented sales data https://finance.yahoo.com/m/baeb55ab-e2a3-3c95-8087-7a32e539c922/the-revenue-growth-rate-that.html they are still burning through cash that they cannot spare.
Nah, they have never burnt through cash. What they have been doing is investing heavily in the future of the company. Now that those start-up investments have been made, they will roll in the cash without having to shell so much out to grow. By the way, you do realize that they have enough cash on hand right now to keep investing heavily for 9 more months (using data extrapolated from their latest financial quarter) if they had to, but they don't: the heavy investment period is over.

We will see but to me he is a snake oil salesman. Lot of folks are emotional about this guy and are going to lose money but hey makes me no difference I am just watching and waiting for all of the cards to come falling down.

He has no logistical or dealer service network and a supply chain that is in a constant state of turmoil. Wait until the recalls start then he will be lost for words. Competition is coming like a freight train and he is going to get hit hard by it. Most people were smart enough not to buy his cars but to lease them. The residual is NOT what they were planning. Just some other hits they will be taking in the future.

Never get emotional about money--Rule #1, Rule #2 and Rule #3.....
Yeah, a lot of folks have been overly emotional: desperately wanting Tesla and Musk to fail. I agree that there will be a lot of crying and wailing, but I increasingly don't believe that it is going to be the people most predicted it would be. I just wonder if 10 years from now there will still be people saying, "Tesla is going to fail, I tell you. Just wait and see!"

Sure there are many things which could go wrong, but that can be said of lots of successful companies. They could still fail. But it sure looks increasingly doubtful now.
 

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Nah, they have never burnt through cash. What they have been doing is investing heavily in the future of the company. Now that those start-up investments have been made, they will roll in the cash without having to shell so much out to grow. By the way, you do realize that they have enough cash on hand right now to keep investing heavily for 9 more months (using data extrapolated from their latest financial quarter) if they had to, but they don't: the heavy investment period is over.



Yeah, a lot of folks have been overly emotional: desperately wanting Tesla and Musk to fail. I agree that there will be a lot of crying and wailing, but I increasingly don't believe that it is going to be the people most predicted it would be. I just wonder if 10 years from now there will still be people saying, "Tesla is going to fail, I tell you. Just wait and see!"

Sure there are many things which could go wrong, but that can be said of lots of successful companies. They could still fail. But it sure looks increasingly doubtful now.
Well we shall see... :)
 

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I'm rooting for Tesla. America needs some success stories. Immigrant makes good and sets an established industry on their ear. That story is about as American as it gets.
Well with the attempt at striking back at the "shorts" the SEC involved as they should and the civil actions being filed as we speak Musk is going to have his hands full that is for sure lol. Do not agree that Musk and his story is "American as it gets" because Musk does not have the best interests of his shareholders taken into account imho when he continually opens his mouth or sends inappropriate texts that cost them money in more ways than one. When you start looking into the detail of his manufacturing operation, supply chain etc. is not sustainable.

We will see in a couple of years if that long when all of this will be played out and the artifacts surrounding Tesla are there for everyone to see. Until then the clock keeps ticking.
 

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I'm rooting for Tesla. America needs some success stories. Immigrant makes good and sets an established industry on their ear. That story is about as American as it gets.
Think the end is near for Musk. This is the beginning of the end for him. When all of the investigations are completed it will be untenable for him in fact the Board is even retaining Counsel because of Musk and his Twitter addiction not to mention other things that are coming to light. Finally people see the writing on the wall and are getting out.

Time will tell.... My prediction is Musk will go down as a failure who had good intentions. The unfortunate thing is people bought into his "dream" even if it was never going to be financially viable.

My .02 of course but have pretty successful making money judging people like Musk and the companies that they run. For me it is all about ROI and when that will happen period.... Emotional investing only has one destination---the poor house....
 
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