Tracking a Canadian TSLA troll, Jeremy Cato of the Globe and Mail

[wayner]

For the most part his article is BS, but he makes a good point about wondering how the Model 3 will be profitable when Tesla has trouble earning a profit on the Model S. Will the scale of the Model 3 allow them to drive down costs enough to make money with an ASP on the Model 3 of US$42,000? I know that a lot of the current costs are overhead but it isn't clear what the variable cost is today of a Model S/X and how they can drive it down to somewhere well under $35,000 to allow the Model 3 to be profitable.

In some ways I don't care as I love my Model S and it is a great product. As long as the company is still around I am happy.

 

[S'toon]

For the most part his article is BS, but he makes a good point about wondering how the Model 3 will be profitable when Tesla has trouble earning a profit on the Model S. Will the scale of the Model 3 allow them to drive down costs enough to make money with an ASP on the Model 3 of US$42,000? I know that a lot of the current costs are overhead but it isn't clear what the variable cost is today of a Model S/X and how they can drive it down to somewhere well under $35,000 to allow the Model 3 to be profitable.

In some ways I don't care as I love my Model S and it is a great product. As long as the company is still around I am happy.

This is a common mistake. Tesla has a deficit. That's not because it's having trouble making a profit off the S. It's reported that Tesla makes $20K profit per car. It's just that Tesla's spending money faster than it's coming in. They're building up the company. Building superchargers. Building a Gigafactory. Expanding stores and service centres. Building factories in other parts of the world. Once all that capital expenditure is done, then the company will book a profit. You have to spend money to make money.

 

[wayner]

I am not sure that is true. What I am talking about is the gross profit margin on the Model S/X. That is, essentially, the selling press less the direct cost of manufacturing the car. And it varies in different markets - it will be way lower in Canada given the fact that Tesla has been slow to raise prices in Canada as the C$ falls and they are eating the $6500 tariff. Canadians may hate the fact that Tesla is increasing the price but some stock analysts are criticizing Tesla for reducing their average price but not being more aggressive in rising prices outside of the US as the USD has strengthened in the last year.

I am not talking about the cash flow of the overall company, which is a different concept entirely. Of course that cash flow has been helped by getting $250 Million in the door in the form of deposits for Model 3s. Of course they also have a corresponding payable for those funds but they have the cash in the door today to help finance the expansion needed to build those 1/4 million cars.

 

[rapoport3a]

Looks like the G&M got rid of Cato. I have no interest in reading his articles but will have to contact him in October. May not be possible.

 

[sitter_k]

Looks like the G&M got rid of Cato. I have no interest in reading his articles but will have to contact him in October. May not be possible.

He probably quit so that he wouldn't have to buy you a model s !

 

[rapoport3a]

We have our ways…

 

[sjd]

Looks like the G&M got rid of Cato. I have no interest in reading his articles but will have to contact him in October. May not be possible.

Good. I work in the auto industry and had to deal with this guy once or twice a few years back and he's so full of himself its nauseating.

Of course if you want the king of d-bags in Canadian auto journalism, it's this guy.

Motor Mouth: Why I’m not drinking the Tesla Kool-Aid

 

[rapoport3a]

David Booth may make one or two good points among his many misconceptions, exaggerations, etc. Higher number than Cato? At least Booth doesn't shout "FACT!" when he is utterly ridiculous or clueless.

 

[S'toon]

Good. I work in the auto industry and had to deal with this guy once or twice a few years back and he's so full of himself its nauseating.

Of course if you want the king of d-bags in Canadian auto journalism, it's this guy.

Motor Mouth: Why I’m not drinking the Tesla Kool-Aid

Yeah, I read that article yesterday. It gave me a serious case of eye-roll.

 

[RiverBrick]

Of course if you want the king of d-bags in Canadian auto journalism, it's this guy.

Motor Mouth: Why I’m not drinking the Tesla Kool-Aid

A pretty good article if you want to stay on the guest list for an ICE test-drive event at a golf resort.

 

[sjd]

David Booth may make one or two good points among his many misconceptions, exaggerations, etc. Higher number than Cato? At least Booth doesn't shout "FACT!" when he is utterly ridiculous or clueless.

Fine, you win. lol. I'll concede that Cato is at least as big of a d-bag as Booth.

A pretty good article if you want to stay on the guest list for an ICE test-drive event at a golf resort.

That's exactly it. These guys cherry pick their assignments so they end up in Europe driving exotics and are shills of the highest order.

 

[sitter_k]

Listen to Jerry Agar Podcast April 7, 2016 by Jerry Agar Show #np on #SoundCloud
Jerry Agar Podcast April 7, 2016

David booth at 47:20, claims people don't like when people analyse Tesla critically. Critically is one thing. Just listen to his half truth and you'll know how anti Tesla he is.

Basically saying how stupid people who put down a deposit are who lined up sight unseen and keeps talking about range anxiety.

 

[sjd]

Tesla doesn't need these journalists to promote their products and they hate that. The ICE manufacturers love these guys because they are bashing Tesla. Like the dealer network these journalists want to maintain the status quo. I should add that almost a decade ago that I was a journalist and the outlet wrote for would edit if I said anything too negative. I know how the game works.

 

[Lon12]

Did anyone read David Booth's write up today "EVs driving change in auto landscape"?
Can't find a digital link to it but I read it in the paper.

 

[Duckjybe]

Did anyone read David Booth's write up today "EVs driving change in auto landscape"?
Can't find a digital link to it but I read it in the paper.

Which paper?

 

[Lon12]

Was in the BC Province. I have a copy of it but can't find a web link.

 

[green1]

Was in the BC Province. I have a copy of it but can't find a web link.

Care to provide an executive summary?

 

[green1]

I actually found it.
Motor Mouth: Will governments ban internal combustion?