Tesla continues to struggle - Ford Inside News Community
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post #1 of 118 (permalink) Old 05-20-2019, 12:05 PM Thread Starter
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Tesla continues to struggle

If you look at the news coming out of Tesla over the last year or so, it’s obvious that the company is desperately trying to find ways to decrease operating costs. Whether it’s by closing down dealerships, publicly dismissing LIDAR because it’s too expensive, allegedly attempting to block worker’s comp cases, or laying off 9% of its workforce last June and a further 7% this January.

On Thursday Tesla CEO Elon Musk stepped up to a new level of money crunch when, according to Reuters, he told employees that every single page of any request for money needs to be signed off by either himself or company chief financial officer, Zack Kirkhorn, no matter how small. Musk confirmed this by confirming this crunch includes parts, salary, travel expenses, rent, and “literally every payment that leaves our bank account must be reviewed.”

In that same statement to employees, Musk stated that if the company’s Q1 losses of $700 million were to extend through the year, the company would be out of money within 10 months. Despite recently closing a $2.7 billion offering of stock and convertible notes, the company currently only has reserves of $2.2 billion.

Musk on the cash crunch: “This is hardcore, but it is the only way for Tesla to become financially sustainable and succeed in our goal of helping make the world environmentally sustainable.”

A similar email was sent in April of last year where Musk stated he had told the Tesla financial team to “comb through every expense worldwide” to find line items that could save the company money. A year later, the company is chasing the same issues. It’s clear that Musk no longer trusts the financial team to make the right decisions with company money, and has adopted an “I alone can fix it” view of the situation.

Can Tesla produce, sell, and deliver cars at a rate that will make the company a sustainable profit? I think long term it’s possible. Can it be done in 10 months? I somehow doubt it.

https://jalopnik.com/elon-musk-says-...-or-1834865145
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post #2 of 118 (permalink) Old 05-20-2019, 12:31 PM
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Re: Tesla continues to struggle

EVs are not profitable. Not yet.
Tesla sell EVs losing money.
Tesla is not financially viable.
Tesla will go to banckrupcy soon.


Every body know those facts...

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post #3 of 118 (permalink) Old 05-20-2019, 01:40 PM
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Re: Tesla continues to struggle

Actually listening to or reading the release from the Tesla 1st Qtr earnings call explained where the bulk of the $700 Million in losses for the quarter came from. The bulk was tied to building out the European markets and China for future product sales growth. What came with that was 10,600 $60k+ models that were in transit that were not added to the books at over $600M in revenues on boats to Europe and China.

Looking at Tesla EV profitability, Model S and X are over 20% profitable and Model 3 is close to 30% profitable.

Now with the sale of Maxwell complete, and the new dry electrode batteries that are 30% less to manufacture, can't burn, faster to manufacturer, with Zero cobalt, requiring much less space to manufacturer and offering an initial 30% battery density increase over the current Panasonic cells (these cells are already being tested in the New Roadster and Semi, and will be in the Pick-up and next gen pack for Model 3 next year), with a 90% incrase over current Panasonic battery cells in the near future, there is a big announcement coming.

Not only will Tesla leap even further forward with battery technolgy far surpassing anything the competitoin can offer, but they own it and can license it. So the belt tightening is about much more than just making cars, but preparing to rapidly ramping up Tesla's own highly profitable battery business, to support the car, solar, power storage businesses.

There is more...Ultracapacitors and Supercapacitors!

Just a few of Tesla's largest customers today:

Geely/Volvo
General Motors
Lamborghini
Continental AG
PSA

What's happening at Tesla today is so huge that the 'market' is doing what it does, try and drive down the price as much as possible before the announcements happen, then profit off the rapid stock price increase.

Just do a little research and get up to speed...

https://www.maxwell.com

Last edited by Bloggin; 05-20-2019 at 01:43 PM.
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post #4 of 118 (permalink) Old 05-20-2019, 05:36 PM
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Originally Posted by Bloggin View Post
Actually listening to or reading the release from the Tesla 1st Qtr earnings call explained where the bulk of the $700 Million in losses for the quarter came from. The bulk was tied to building out the European markets and China for future product sales growth. What came with that was 10,600 $60k+ models that were in transit that were not added to the books at over $600M in revenues on boats to Europe and China.

Looking at Tesla EV profitability, Model S and X are over 20% profitable and Model 3 is close to 30% profitable.

Now with the sale of Maxwell complete, and the new dry electrode batteries that are 30% less to manufacture, can't burn, faster to manufacturer, with Zero cobalt, requiring much less space to manufacturer and offering an initial 30% battery density increase over the current Panasonic cells (these cells are already being tested in the New Roadster and Semi, and will be in the Pick-up and next gen pack for Model 3 next year), with a 90% incrase over current Panasonic battery cells in the near future, there is a big announcement coming.

Not only will Tesla leap even further forward with battery technolgy far surpassing anything the competitoin can offer, but they own it and can license it. So the belt tightening is about much more than just making cars, but preparing to rapidly ramping up Tesla's own highly profitable battery business, to support the car, solar, power storage businesses.

There is more...Ultracapacitors and Supercapacitors!

Just a few of Tesla's largest customers today:

Geely/Volvo
General Motors
Lamborghini
Continental AG
PSA

What's happening at Tesla today is so huge that the 'market' is doing what it does, try and drive down the price as much as possible before the announcements happen, then profit off the rapid stock price increase.

Just do a little research and get up to speed...

https://www.maxwell.com
...you watch the market long enough, you learn their tricks. They shake out the suckers then launch the price skyward. GF3 looks almost complete. They’ll be tooled up by year end. They are the only Western auto company who owns 100% of their Chinese venture. The Chinese market is massive for EVs. They’ll get to bypass any and all tariffs.

Tesla always is walking a tightrope, but Maxwell acquisition is potentially big. They “see a path” to 500wh/kg with dry application, which would probably double their current density. Insane to think about the impact that will have on the market. 1kwh/kg and ****...we’ll be living in a sci-fi future.
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post #5 of 118 (permalink) Old 05-20-2019, 07:42 PM
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Re: Tesla continues to struggle

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Originally Posted by mooseman View Post
...you watch the market long enough, you learn their tricks. They shake out the suckers then launch the price skyward. GF3 looks almost complete. They’ll be tooled up by year end. They are the only Western auto company who owns 100% of their Chinese venture. The Chinese market is massive for EVs. They’ll get to bypass any and all tariffs.

Tesla always is walking a tightrope, but Maxwell acquisition is potentially big. They “see a path” to 500wh/kg with dry application, which would probably double their current density. Insane to think about the impact that will have on the market. 1kwh/kg and ****...we’ll be living in a sci-fi future.
I agree. By the time there is an 'analyst report' the major players have already made theri plans, and the 'report' is to implement that plan, either help push the stock price down so the major players can buy more, or 'report' to increase the stock price, so major investors can sell at the highest profit. Right now major players who know what Tesla is about to announce, have already bought more while the suckers (who are only listening to what the analysts are telling them) are selling.
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post #6 of 118 (permalink) Old 05-21-2019, 02:10 AM
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Re: Tesla continues to struggle

A company where the purchase of toilet paper should be authorized by its CEO to control expenses is dead. It does not matter what you are going to announce. No matter what futuristic or Sci Fi technology is about to show. Is dead.


Another company that will have serious problems in the near future is VW. His commitment to bet everything on the EVs in the short term will lead to serious problems. In fact, at the last meeting of his executive committee, all the alarms have gone off and there are people on that board who do not like the plan. Today, I repeat, today, I do not see a market that can absorb the large number of EVs that VW plans to produce. But maybe I'm wrong ... if I'm not, it will be the biggest bankruptcy in decades.

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post #7 of 118 (permalink) Old 05-21-2019, 07:23 PM
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A company where the purchase of toilet paper should be authorized by its CEO to control expenses is dead. It does not matter what you are going to announce. No matter what futuristic or Sci Fi technology is about to show. Is dead.


Another company that will have serious problems in the near future is VW. His commitment to bet everything on the EVs in the short term will lead to serious problems. In fact, at the last meeting of his executive committee, all the alarms have gone off and there are people on that board who do not like the plan. Today, I repeat, today, I do not see a market that can absorb the large number of EVs that VW plans to produce. But maybe I'm wrong ... if I'm not, it will be the biggest bankruptcy in decades.
...preference cascade. Look at what happened to both Nokia and Blackberry. Once the market changes, if you aren’t prepared, well...
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post #8 of 118 (permalink) Old 05-21-2019, 08:44 PM
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Re: Tesla continues to struggle

I don't think any automaker is preparing to not be prepared. How quickly you transition will impact sales and profits, sure, but everyone is gearing up for it. VW no doubt believes that any slow transition to BEV will no doubt cost them in some sales in the short term, made up by the billions they saved by not investing in ICE or hybrids. It's not a bad strategy at all, completely ignoring the concern for adequate infrastructure to support the huge shift. Ford's strategy is typically conservative, but in this case I think they were wise to either stop or not invest billions in all new ICE sedan platforms in the coming years. Sales of course would have been pathetically weak, and the ROI even more pathetic as they begin their shift to BEV, while keeping a close eye on how quickly they need to pivot. It took me a while to recognize this strategy, which they are coy about, but the writing is on the wall regarding future ICE development programs.

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post #9 of 118 (permalink) Old 05-22-2019, 01:57 AM
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Re: Tesla continues to struggle

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Originally Posted by mooseman View Post
...preference cascade. Look at what happened to both Nokia and Blackberry. Once the market changes, if you aren’t prepared, well...



One thing is "get prepared", another thing is to put all your resources, work and money in a tech that is in its first steps in the road of customers acceptation.



VW is taking a big, very big risk.
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post #10 of 118 (permalink) Old 05-22-2019, 03:58 PM
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Re: Tesla continues to struggle

More bad news for Tesla.

https://www.cnet.com/roadshow/news/c...tag=CADf328eec
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