valuationmatters
Banned
Agreed. That was my point. They are not sold out. They are allowing people to enter their name and email address into a form. I laugh when I hear the arguments about how Tesla is supply vs. demand constrained. That is so meaningless. The point is they are not selling the product yet. If being supply-constrained equated justified putting a huge multiple on a product with no sales, then I would like to announce that I am supply constrained on my Delorean time machine with flux capacitor. I have a drawing (made by my 8-year old). There I think I will now get Goldman Sachs to do an equity offering for $50 billion.
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At least you are honest. I am short the stock purely based on mathematical reasons. I have no ill will toward Tesla and I kinda like the idea of a new American car company. Especially one that might reduce air pollution and reduce reliance on foreign oil. However I am just very skeptical they can ever make a profit or break even for that matter, when one includes all costs of the car including sales costs, support costs, admin. One cannot simply exclude the bulk of costs (sales costs, SC support costs, admin/overhead costs, R&D costs)and claim their cars have a 25% gross margin. If they made a 10% operating margin this would be a huge difference and allow Tesla to actually reinvest those profits. It is now clear that (i) yes Model S makes 20-25% gross profits (excluding R&D which really should be included but nevermind), (ii) Model X will struggle to break even due to its needless complexity and fit & finish issues, and (iii) Model 3 cannot possibly make money due to the low price point and cost of sales not much less than Model S (and Tesla's claim that everything will be new, front the ground up), (iv) Gigafactory will be an enormous capital expenditure which ultimately proves Tesla has no expertise in manufacturing.
Tesla will one day be fondly remembered for accelerating the move toward electric vehicles. Unfortunately Tesla will not be the winner and will likely fail to deliver any meaningful shareholder value. Another Blackberry.
BTW I checked out a Model S at the Tesla store today. I found the back seat space mediocre, and the fit & finish poor relative to most other cars, even my Infiniti G37 which I leased for zero money down and $270 per month. Specifics. 1. The leather was like vinyl -- almost like inflatable vinyl. 2. The gap between the interior door surface and the surface next to it were wide enough to stick my finger in. Yes the 17-inch touch screen was cool. Almost as cool as my iPad Pro, which has higher resolution and costs only $1000. No I did not test drive it because I do not believe in wasting someone's time. I have no doubt it would have awesome immediate acceleration and great handling. That's nice but does not come close to the other issues. The hatchback trunk was nice and big. The front was big enough for a small bag. So what?
I look forward to many other electric vehicle offerings. Not terribly impressed. If this hurts some feelings here it was not my intent, but feel to block me so that you can go back to all agreeing that Tesla is the best thing since electricity without having to listen to any dissent.
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At least you are honest. I am short the stock purely based on mathematical reasons. I have no ill will toward Tesla and I kinda like the idea of a new American car company. Especially one that might reduce air pollution and reduce reliance on foreign oil. However I am just very skeptical they can ever make a profit or break even for that matter, when one includes all costs of the car including sales costs, support costs, admin. One cannot simply exclude the bulk of costs (sales costs, SC support costs, admin/overhead costs, R&D costs)and claim their cars have a 25% gross margin. If they made a 10% operating margin this would be a huge difference and allow Tesla to actually reinvest those profits. It is now clear that (i) yes Model S makes 20-25% gross profits (excluding R&D which really should be included but nevermind), (ii) Model X will struggle to break even due to its needless complexity and fit & finish issues, and (iii) Model 3 cannot possibly make money due to the low price point and cost of sales not much less than Model S (and Tesla's claim that everything will be new, front the ground up), (iv) Gigafactory will be an enormous capital expenditure which ultimately proves Tesla has no expertise in manufacturing.
Tesla will one day be fondly remembered for accelerating the move toward electric vehicles. Unfortunately Tesla will not be the winner and will likely fail to deliver any meaningful shareholder value. Another Blackberry.
BTW I checked out a Model S at the Tesla store today. I found the back seat space mediocre, and the fit & finish poor relative to most other cars, even my Infiniti G37 which I leased for zero money down and $270 per month. Specifics. 1. The leather was like vinyl -- almost like inflatable vinyl. 2. The gap between the interior door surface and the surface next to it were wide enough to stick my finger in. Yes the 17-inch touch screen was cool. Almost as cool as my iPad Pro, which has higher resolution and costs only $1000. No I did not test drive it because I do not believe in wasting someone's time. I have no doubt it would have awesome immediate acceleration and great handling. That's nice but does not come close to the other issues. The hatchback trunk was nice and big. The front was big enough for a small bag. So what?
I look forward to many other electric vehicle offerings. Not terribly impressed. If this hurts some feelings here it was not my intent, but feel to block me so that you can go back to all agreeing that Tesla is the best thing since electricity without having to listen to any dissent.