Tesla Master Plan: Part Deux

  • Thread starter CodeRedR51
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Almost makes Bitcoin look like a stable and sensible investment. :P

I have a feeling we'll be seeing a repeat of this in a few months if they are able to post a third consecutive quarter with positive revenue.
 
Joey D
It's probably a short squeeze. Which is good for the short term, but can cause havoc in the long term for the company. Essentially, it's a huge influx of investors over a short period of time, but it ends up outpricing itself and people can no longer afford the share. Once it plateaus, then you see a massive selloff causing the company to lose a huge chunk of investment. This is problematic if the investment money is already spent.
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Just a note. I think you're conflating rise and fall of stock prices with the existing outstanding shares vs a fall in stock price due to dilution. In general, the former price movements do not specifically change's a company's cash flow (no capital raised), while the latter will increase the incoming cash (raising capital) at the one-time expense of the stock price.

With the normal rise and fall of stock prices, no capital (cash) is raised and business expenditures is not directly tied to stock price. With stock dilution, capital (cash) is raised and enables the business to increase expenditures.
 
J.D. Power released their Initial Quality Study for 2020, and it seems Tesla hasn't fared so well.

Tesla's cars and SUVs had 250 problems per 100 vehicles, compared with an industry average of 166. The next five worst-scoring brands were Land Rover (228), Audi (225), Volvo (210), Mercedes-Benz (202) and Jaguar (190). In general, luxury brands struggled in the 2020 study in part due to problems with their infotainment systems.

In Tesla's case, though, problems included paint defects, poor fit of body panels, trunks and hoods that were hard to open and close, too much wind noise in the interior, squeaks and rattles, according to J.D. Power's automotive President Doug Betts.
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EngieDiesel
J.D. Power released their Initial Quality Study for 2020, and it seems Tesla hasn't fared so well.
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I remember reading a Model 3 review somewhere were they said they hadn't seen fit and finish (particularly panel gaps) like that since the 1970's. Shocking that Tesla can produce build quality unheard of in the 21st century :lol:
 
It's a symptom of trying to do too much too fast. Tesla tried to grow its model range before really figuring out all the ins and outs of building a car properly. They also did a poor job at anticipating demand while overworking their employees and more or less treating them like crap. This shows in the final product and is unacceptable in a car that can cost upwards of $100k like the Model S. I get the comment about the infotainment system too, it's awful and difficult to use while driving since everything is controlled through it.
 
Joey D
It's a symptom of trying to do too much too fast. Tesla tried to grow its model range before really figuring out all the ins and outs of building a car properly. They also did a poor job at anticipating demand while overworking their employees and more or less treating them like crap. This shows in the final product and is unacceptable in a car that can cost upwards of $100k like the Model S. I get the comment about the infotainment system too, it's awful and difficult to use while driving since everything is controlled through it.
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I feel like Tesla, more than any other automakers, has one foot in the tech economy, and another in the automotive production industry. Meaning that releasing underdeveloped products now to generate interest and hoard market share (I mean Tesla dominates the EV market) is more important than taking the time to release a "perfect" product. The issue is that you can't really send over a patch to update the bodywork. Tesla is a pretty unique company.
 
Eunos_Cosmo
I feel like Tesla, more than any other automakers, has one foot in the tech economy, and another in the automotive production industry. Meaning that releasing underdeveloped products now to generate interest and hoard market share (I mean Tesla dominates the EV market) is more important than taking the time to release a "perfect" product. The issue is that you can't really send over a patch to update the bodywork. Tesla is a pretty unique company.
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And given that for the longest time Tesla was effectively only competing with itself, since the major automotive groups were dragging their feet on hybrid/EV development until recently and smaller companies were aiming for the boutique supercar market, that less-than-perfect build quality wasn't as much of an issue because of the showcase quality of the technology. But now the more traditional luxury names are stepping up their game (because the EU forced the issue), new companies like Rivian and Lucid are looking to come in and provide direct competition and even Ford is planning key features like hands-free highway driving in F-150s by this time next year, so less than perfect isn't going to be enough pretty soon.
 
EngieDiesel
But now the more traditional luxury names are stepping up their game (because the EU forced the issue), new companies like Rivian and Lucid are looking to come in and provide direct competition and even Ford is planning key features like hands-free highway driving in F-150s by this time next year, so less than perfect isn't going to be enough pretty soon.
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I feel like perfect is such a strong word, maybe we can use not terrible instead.
 
So...at the time of writing this, Tesla stock is up 10% today. :eek: Now trading around $1700 (Ford is $6.00, Toyota is $125) for a market cap of $313bn...almost 4x VAG. Incredible.
 
Currently dropping into the 1600's now.

Edit: and it took a nose dive mid-day to close under $1500.
 
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Man, Tesla just closed out the deal on the Gigafactory in Texas for the Cybertruck, etc and I had no idea they were already this far along with clearing the land for it...

 
R1600Turbo
Man, Tesla just closed out the deal on the Gigafactory in Texas for the Cybertruck, etc and I had no idea they were already this far along with clearing the land for it...

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If they're going to get that thing out to market in any kind of a timely manner, then I imagine they have to really get moving on getting this factory up and running. Other small companies are already on track to get all-electric trucks out by sometime next year, and Ford looks like they're finally making a serious push into EV development. If the Cybertruck isn't out before them, I doubt its novelty factor will carry it over a competitor that has the same technology but far less polarizing body design.
 

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