TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

One Major Threat To Tesla: THEORY

Discussion in 'TSLA Investor Discussions' started by Clprenz, Apr 1, 2014.

  1. Clprenz

    Clprenz Member

    Joined:
    Jan 22, 2013
    Messages:
    497
    Location:
    Bloomington, Illinois, United States
    What would happen if we invest in Tesla and the Dollar and the US fall apart in the next 5 years? This is a theory I believe that could be likely. If you don't follow what I'm saying, read the book The Real Crash America's Coming Bankruptcy.
    What do you guys think?!
    Let the discussion begin!
     
  2. perdru

    perdru Member

    Joined:
    Nov 21, 2013
    Messages:
    34
    Location:
    Norway
    What if the sun refused to shine ? :)
     
  3. robbie380

    robbie380 Member

    Joined:
    Jan 2, 2014
    Messages:
    21
    Location:
    Austin, TX
    Perfect response :biggrin:
     
  4. c041v

    c041v Member

    Joined:
    Jan 7, 2013
    Messages:
    509
    Location:
    Edmonton, AB
    I'm sure Elon would come up with an acceptable artificial sun. Mind you, he'd have to disclose a conflict of interest regarding SCTY.
     
  5. GlennAlanBerry

    Joined:
    Dec 3, 2012
    Messages:
    438
    Location:
    Parker, CO
    #5 GlennAlanBerry, Apr 1, 2014
    Last edited: Apr 1, 2014
    If the U.S. and the Dollar "fall apart in the next 5 years", (which I think is highly unlikely), then worrying about Tesla or TSLA will be the least of my worries...

    I took a quick look at the blurbs and reviews for the book on Amazon, and I am not too impressed. It seems to be a pretty typical RW, "buy gold and start doomsday-prepping" type of anti-government book that many Fox News viewers will probably appreciate.
     
  6. sleepyhead

    sleepyhead Active Member

    Joined:
    May 31, 2013
    Messages:
    1,915
    Location:
    Texas
    Exactly what I was going to say.
     
  7. ElSupreme

    ElSupreme Model S 03182

    Joined:
    Jan 13, 2012
    Messages:
    4,279
    Location:
    Atlanta, GA
    At least if hyper inflation hits before my loan is up I can mock all those on the board that were advocating for 'pay in cash'. Then I will live out my depression life in misery like everyone else.

    Hopefully being an engineer will be somewhat depression resistant.
     
  8. Lump

    Lump Active Member

    Joined:
    Mar 31, 2013
    Messages:
    2,112
    Location:
    So. Cal.
    This theory should include a country & currency that will rise if the Dollar collapses.
     
  9. kenliles

    kenliles Active Member

    Joined:
    Jun 7, 2012
    Messages:
    1,823
    Isn't it US based companies like Tesla that make this a non-event?
    I'd say investment in Tesla is your best hedge to prevent the scenario in the first place
     
  10. sleepyhead

    sleepyhead Active Member

    Joined:
    May 31, 2013
    Messages:
    1,915
    Location:
    Texas
    Also, if the dollar collapses it would make exports extremely cheap.
     
  11. mitch672

    mitch672 Active Member

    Joined:
    Jul 1, 2012
    Messages:
    1,868
    Location:
    Stoughton, MA
    The "dollar" has been on a slow, steady decline since 1971, when Richard Nixon took the United States of the gold standard, it's all been fiat currency since then. Also most other countries who are not on a gold standard (which is all of them, at this point), their currencies have also been devalued, it's a race to the bottom.

    Nixon Shock - Wikipedia, the free encyclopedia
     
  12. ElSupreme

    ElSupreme Model S 03182

    Joined:
    Jan 13, 2012
    Messages:
    4,279
    Location:
    Atlanta, GA
    Uh maybe. But I probably have more computing power in my house than all of NASA had in 1972. The average standard of living is much improved since 1972. So what if there is 'devaluation of currency' we have more of it. And we can buy more than we used to.

    Not saying fiat currency is a magic bullet, or problem free, but it was better than arbitrarily assigning a set amount of a useful but mostly trivial element to the value of a dollar.
     
  13. green1

    green1 Active Member

    Joined:
    Mar 25, 2014
    Messages:
    4,116
    Location:
    Calgary, Alberta, Canada
    This is a risk in ANY investment and is not unique to TSLA. This is why you keep hearing about diversification. Luckily Tesla is also diversifying. By selling in China and throughout Europe Tesla is decreasing their risk exposure to the American market. In fact, if Tesla can get to a point where foreign sales can make up for any dip in domestic sales, then they end up better off in an American recession because their costs go down while profits stay high. Tesla also stands to benefit when the gen III platform his the market as it is a car that could completely pay for itself in reduced fuel and maintenance all within 5-10years meaning that hard hit consumers may still buy even though they wouldn't otherwise. All in all Teska is in a pretty good position.

    That said, I would never consider a stock portfolio that included only one company, or even only one sector of the economy, or one country. Tesla is part of my portfolio, it isn't my whole portfolio.
     
  14. dhrivnak

    dhrivnak Active Member

    Joined:
    Jan 8, 2011
    Messages:
    2,150
    Location:
    NE Tennessee
    If the dollar collapsed I would be far more worried about the 50% of the gasoline we still need to import. Do you think the Saudi's would just donate oil to us
     
  15. kenliles

    kenliles Active Member

    Joined:
    Jun 7, 2012
    Messages:
    1,823
    we moved from the gold standard to the oil standard. I'm hoping with Tesla's help we move next to the Solar standard (Gold-Light)
     
  16. mitch672

    mitch672 Active Member

    Joined:
    Jul 1, 2012
    Messages:
    1,868
    Location:
    Stoughton, MA
    Saturday Night live once did a sketch, featuring a fake Jimmy Carter, the message was essentialy "Inflation is your friend"' had such famous lines as "don't you want to live in a $2 million home, drive a $500K car, I know I do" (followed by that famous Jimmy Carter grin). The point is, yeah, we have more dollars, but they don't buy as much. Look at the average new car price in 1970, now look at what it was in 2010. Are we any better off? More dollars is not the solution, the value of each dollar is. Even if the dollar collapses, we can still buy and sell things amongst ourselves, it's imports and exports that will be killed. Another reason we need to be more self sufficient.
     
  17. ElSupreme

    ElSupreme Model S 03182

    Joined:
    Jan 13, 2012
    Messages:
    4,279
    Location:
    Atlanta, GA
    A 1970 car != a 2014 car. The cars in the 1970s were underpowered, poor handling, unsafe, and inefficient. So of course they are more expensive (against inflation).

    A perfectly opposite example is computers. I have in my house more computing power than all of NASA in 1970. I would bet that they spent millions of 1970s dollars on their computers, and support equipment. I have about $7k worth of active computers in my house.

    So my 'less worth' dollars bought so much more.

    Truth is most people now can buy more stuff than they could in the 70s.
     
  18. Krugerrand

    Krugerrand Active Member

    Joined:
    Jul 13, 2012
    Messages:
    4,298
    Location:
    California
    You can not live a full life worrying about what's around every corner, particularly when that imagined threat is a herd of zombies and you've only got six bullets left.
     
  19. sleepyhead

    sleepyhead Active Member

    Joined:
    May 31, 2013
    Messages:
    1,915
    Location:
    Texas
    Fun fact:

    The US Gov't adjusts inflation numbers for such advances in technology. E.g. if you bought an IPad 1 for $500 last year and an IPad 2 for $550 this year it is not considered 10% inflation, but gets adjusted down based on advances in technology, and inflation for that item could be 0% even though it costs you 10% more to get a computer than the year before.
     
  20. Johann Koeber

    Johann Koeber Member

    Joined:
    May 1, 2012
    Messages:
    664
    Location:
    Nuremburg, Germany
    This inflation with regard to TSLA is killing me.

    No - not really as I am long TSLA.
     

Share This Page