BigOxley Posted August 29, 2015 Report Share Posted August 29, 2015 Oil and gasoline will never run out but traditional fossil fuels will. It's one thing for Tesla to be bleeding cash, but they are also threatened by traditional automakers who could adopt their business model at any time. Audi will launch an electric SUV similar to the Model X at around the same time. How do you figure about gas/oil? Not being a smartass. To my understanding, tesla is spending money, not bleeding cash. It costs money to build the biggest battery factory in the world, no? Amazon didn't turn a profit for years. Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted August 29, 2015 Report Share Posted August 29, 2015 How do you figure about gas/oil? Not being a smartass. To my understanding, tesla is spending money, not bleeding cash. It costs money to build the biggest battery factory in the world, no? Amazon didn't turn a profit for years. They're investing in infrastructure and R&D, but they're not seeing effective returns on either. Amazon still barely turns a profit, but they basically control the marketplace. Tesla cannot and will never exert the kind of control Amazon has. While Tesla isn't necessarily hemorrhaging cash as I previously said, they're operating at a $47m loss and that's not chump change for what basically is a startup company. They need the Model X and the Model 3 to come out ASAP but as we've seen, there have been a lot of empty promises. Quote Link to comment Share on other sites More sharing options...
Mallard Posted August 29, 2015 Report Share Posted August 29, 2015 How do you figure about gas/oil? Not being a smartass. To my understanding, tesla is spending money, not bleeding cash. It costs money to build the biggest battery factory in the world, no? Amazon didn't turn a profit for years. The difference between Amazon and Tesla is Amazon was defining the market. Tesla is coming in against established players who have sales and distribution networks, as well as some loyal customers. Oil and gas is just a chain of hydrocarbons and there are wad of manufacturing these. The most publicised would probably be ethanol and bio diesel, but you also have modified bacteria, and other processes creating 'green crude.' You may have also seen Audi publicising their green gas and diesel, or the US Navy making jet fuel from sea water. Quote Link to comment Share on other sites More sharing options...
Mallard Posted August 29, 2015 Report Share Posted August 29, 2015 (edited) They're investing in infrastructure and R&D, but they're not seeing effective returns on either. Amazon still barely turns a profit, but they basically control the marketplace. Tesla cannot and will never exert the kind of control Amazon has. While Tesla isn't necessarily hemorrhaging cash as I previously said, they're operating at a $47m loss and that's not chump change for what basically is a startup company. They need the Model X and the Model 3 to come out ASAP but as we've seen, there have been a lot of empty promises. Don't forget, that's $47 million dollars lost, including hundreds of millions in revenue from selling ZEV credits. If that market dries up they would be in big trouble...but we need to Hellcat everything. Edited August 29, 2015 by Mallard Quote Link to comment Share on other sites More sharing options...
El Karacho1647545492 Posted August 29, 2015 Report Share Posted August 29, 2015 Don't forget, that's $47 million dollars lost, including hundreds of millions in revenue from selling ZEV credits. If that market dries up that would be in big trouble...but we need to Hellcat everything. I totally understand that, just trying to not seem like an overt Tesla hater :gabe: Quote Link to comment Share on other sites More sharing options...
Littleguy Posted August 30, 2015 Report Share Posted August 30, 2015 From reading this thread, along with most analysts, I would argue that Tesla is a very misunderstood company. Tesla isn't competing against BMW, Toyota, or any other car maker. The "established sales and distribution networks" that people think are advantages to existing auto makers are "advantages" that Tesla does not want. I eventually see the consumer automobile business as a hobby compared to what Tesla will be able to do when it comes to revenue generation. As far as share price, $500+ within the next year and a half would not surprise me. Quote Link to comment Share on other sites More sharing options...
Mallard Posted August 30, 2015 Report Share Posted August 30, 2015 He's spending a lot of money fighting the dealer franchise laws and that's keeping Tesla from having dealerships in key markets. I agree that those laws need to be challenged and there are plenty of dealers out to screw the customer. But the fact is, Tesla could sell more if they were allowed to sell cars everywhere, they are missing out on sales. They aren't profitable so they need to sell as much as possible. While Tesla is busy fighting this battle, 'traditional' car makers that are familiar with catering to the luxury market will launch competitive cars, that are sold around the globe, and they already have an established customer base. Tesla needs to get on their horse and finish the Model X, 3, and gigafactory. They have wasted too much effort launching the X due to the Falcon Doors. I sure hope it's worth the years of delay. They may very well end up as only a battery supplier in the future. Quote Link to comment Share on other sites More sharing options...
Littleguy Posted August 30, 2015 Report Share Posted August 30, 2015 Tesla sells every car they can make. It will be years, even after the first gigafactory is completed, before Tesla has any product that isn't sold faster than they can make it. The irony is that by the time they have the capacity to produce vehicles in numbers to compete with traditional car makers the game will have changed completely and all the companies that get left in the traditional automobile business will be unable to compete at their level. Saying Tesla is a "car maker" that "sells cars" to "consumers" is very much 20th century thinking and not at all what I see in their future. Quote Link to comment Share on other sites More sharing options...
Crossle Posted August 31, 2015 Report Share Posted August 31, 2015 Can we back something up for 2 seconds here? I think Consumer Reports looses credibility in my book and made themselves look really stupid for rating a car above their own scale and then criticizing anything on the car. From the standpoint of a serious auto enthusiast and a mechanic I couldn't care less about what they (Consumer Reports) say about any car really. They write for people who need quiet, efficient, does everything for you cars. I will stand by my argument that Tesla has managed to invade and dominate a "new" segment that really has nothing else in it to compare to. Perhaps in a similar way GoPro has cornered a market for portable video recording. Yeah, there are other options, but they are the gleaming gold standard in that market. Quote Link to comment Share on other sites More sharing options...
Sledhead36 Posted September 1, 2015 Report Share Posted September 1, 2015 Good article for anyone who is not paying attention what's going on outside of the United States: http://seekingalpha.com/article/3477016-why-tesla-motors-can-continue-beating-luxury-rivals-in-europe Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.