Posted on 04/10/2017 9:45:24 PM PDT by Timpanagos1
They are everywhere in Silicon Valley. My husband’’s boss has one. They are pretty cars. My husband says they are nice.
It’s an expensive ‘toy’.
If you did surveys with the Telsa owners...I’d take a humble guess that 98-percent make $75,000 or more, per year. I’d even take a guess that one-third of the first-time owners have a net-worth of one-million.
Government subsidies seem to be quite helpful for some selected companies.
Tesla has overcome most of the hurdles encountered by startups that fail in the car industry. They still haven’t overcome repairs and how long they take, compared to other car companies in the same price range. Many customers have waited several months to get their cars back from the service department.
“Market Capitalization” not units sold. Wake me when they get that far.
Battery maker, not car maker. Tesla’s cars, awesome as they are, serve only as a fundraising gimmick and product demonstration.
My FIL replaced my MIL’s Caddy with a Toyota Avalon probably at least partially because of this, and we’re talking about a multi-decadal GM guy here. It also didn’t hurt that the Avalon plant is 75 miles away in his state.
>> What about earnings per share or the p/e ratio? <<
By that measure, GM was worth less than nothing not long ago.
I’d argue physical assets + intellectual property (including branding) + human resources, recognizing the difficulty in quantifying two of the three.
>> No, market capitalization is an accurate representation of what investors (aka bettors) think (or hope) the company is worth. <<
Since when is the financial value of ANYTHING different from what someone values it to be?
>> Government subsidies seem to be quite helpful for some selected companies. <<
It’s arguable that government subsidies hurt Tesla more than they helped. I think most people who were going to plunk $90K for a Tesla might have plunked $99K for one. But the subsidies kept makers like Fisker in the game to rob Tesla’s cash-raising when Tesla needed it.
>>They still haven’t overcome repairs and how long they take, compared to other car companies in the same price range.
They do seem to be working on that. I personally know a top notch Audi tech who is now working for Tesla, and he was hired by a top notch luxury brand service manager that I know.
Anecdotal, I know, but indicative. And I’m still not close to considering buying one.
Correct on all counts. But by that definition, all luxury cars are toys.
The difference is that the Tesla motocar exists to finance the Tesla Gigafactory. And that’s where the value is. We’re approaching the point where all new power plant construction will be renewable, and for strictly free-market economic reasons, and all will require battery support to shift peak supply to 3PM from noon. That’s a TRILLION-dollar market. And Tesla is one of only a couple major players.
“...representation of a company’s value..”
Used to be but that model is broken. Try and sell Tesla for $10 billion, no takers.
I guess with all the other horrors visited upon us by Obama, I just didn’t keep track of GM’s repayment.
For the cost of vehicle and fuel, I like Lexus hybrids. The Lexus ES300h has a range of over 600 miles on 17 gallons of regular gas...and almost 700 miles if you work at it. Do that with a Tesla.
Toyota has been doing hybrids for a long time. What generation Prius are we on now? The third? That is important.
And I agree, hybrids just make a huge amount of sense vs. pure plug-in electrics.
Does the Lexus allow plug-in?
Ford. They didn't take government money.
And their "Transit" is a very versatile and popular vehicle - I see them everywhere in different configurations.
GM and Secretary Geitner lied about the last 40 Billion +.
I drove the first gen Prius in 2003 as a loaner while getting step rails installed on my new Tundra(my 1st Toyota of 4). I loved it then, but never got one. In 2015, I got my 1st hybrid, Lexus CT200h. I was getting 52 mpg out of it on regular Summer gas, 47 with regular Winter gas. I just traded that in for the ES hybrid. I turn 60 next month, and don’t enjoy getting in and out of low cars as much as I thought I would. Lexus still doesn’t have any plug-in’s, but if the Prius plug-in’s start selling, they will have one. I have still never heard a believable $/mile statement from anyone pushing plug-in cars, except Tesla. Solar recharging at home for free, kind’a takes the cake...
It's only free if somebody gives you the charging station for nothing.
I mean, if I offered a solar charging station for $100,000 with a mainenance free life of 20 years, your daily operating costs would be zero, so it "feels like free," until you figure out how to get the capability in the first place.
I'm not saying the charging station would cost that much, by the way. Just that the true cost of solar refueling is greater than zero.
Tesla has never paid a dividend.
Tesla has never had a positive earnings per share.
Tesla has no p/e ratio because they have no earnings.
Tesla has the potential to become a profitable enterprise at some point, even once the carbon credit scam goes away (as I hope it does). That potential is what is supporting their stock price, and that is the bet that is in play.
GM’s stock price is supported by 100+ years of corporate history. That includes good times, bad times, and in-between times.
Tesla is a glamour stock, GM is a value stock.
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