There was another article about how electric ars will never take off, here on Seeking Alpha.
I highlight here the gist of the arguments about why Tesla shares should be a "sell" but read on to the much better (and very funny!) reply from a Tesla owner John James Lord in the comments section:
Here is the answer from a Roadster owner:
Round of applause to John; wonder if he's a forum member?
I highlight here the gist of the arguments about why Tesla shares should be a "sell" but read on to the much better (and very funny!) reply from a Tesla owner John James Lord in the comments section:
1. A new Reuters article states: "The limitations of the electric cars right now are all well known," said Houchois. "They will not be replacing combustion engines anytime soon. A lot of people aren't going to replace their cars with electric cars. The industry is reluctant too. Every electric car you sell is a combustion car you don't sell."
2. Tesla has reported losses, and analysts expect the losses to continue into 2012. Auto sales estimates for almost all makers are coming down substantially, so it's very likely that Tesla might not sell as many cars in 2012 as some previously expected. Plus, in a tough economy, consumers are less likely to buy expensive cars from a relatively new automaker.
3. Green jobs have been a huge disappointment for many, and some green company stocks ranging from solar to wind have been in a very sharp downtrend. The market correction has taken the air out of many stocks in the green sector. The business realities and major losses have turned many high profile, promising green companies into huge disappointments for investors in certain stocks, such as Evergreen Solar (ESLRQ), which now trades on the pink sheets for about 11 cents. A company once visited and praised by Obama, Solyndra received hundreds of millions of dollars from government agencies, and the company recently filed for bankruptcy.
4. Oil prices have been dropping, and that makes gas much more affordable. Plus, as the Reuters article outlines, automakers are making so many refinements to weight, fuel efficiency and other factors that regular cars and hybrids are narrowing the gap with electric vehicles.
5. Tesla shares have been in a downtrend and do not appear to have found a solid bottom. The stock is only about $3 away from possibly hitting new 52-week lows.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Here is the answer from a Roadster owner:
I agree with you on so many of your points.
1.) Limitations; if we all drove electric vehicles what would we do with all that foreign oil, the big oil companies, and auto companies too big to fail? I see your point we need the internal combustion engine at 15% energy conversion efficiency. Where can I buy a good old horse and carriage these days?
2.) Yes, Tesla has reported and will continue reporting losses for the next two years and we all know that the end of the world is predicted by many to happen in 2012 anyway. Who knows Tesla might even do what GM did to its previous shareholders; go belly up, get the taxpayers to bail them out and then issue a new IPO.
3.) I never liked green, I think that building mountains of non-recycled wastes outside of our cities is a great idea. Building these scenic mountain keeps a lot of waste haulers in business. If we had vehicles that only had tires and batteries to wear out, people might not replace their cars as often and that would diminish our resource of scrap iron.
4.) I've noticed that too. Oil prices have been dropping just a few cents in the past several weeks. At his rate by next summer it might cost me less than $150 to fill my GMC Suburban. When I was younger going to college we used to have gas pump wars and I remember filling up my 68 Chevy for $0.26 per gallon. If we are lucky we might have another war in the middle east and we might be able to fill our cars up at $10.00 per gallon.
5.) Yes, Tesla has been in a down trend for the past few weeks along with the rest of the market. Sure wish it would drop some more below everyone's puts so I can pick up some more Tesla stock at a great price.
Disclosure: I am an optimistic realist. I own a Tesla and you could not imagine how much fun it is to drive one. Sadly enough I was one of those unfortunate investors that got in on the IPO at $17.00 per share.
Thank you for your very objective and humorous article. Good humor these days is really hard to come by especially in the stock market. - John!
Round of applause to John; wonder if he's a forum member?
Last edited:
