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User Info Is Tesla On The Verge of Bankruptcy?; entered at 2017-11-22 08:12:01
Posts: 5415
Registered: 2009-02-28 DFW, Tx
I have seen so stuff on Musk lately that has changed my mind about him. What he said would convince me to risk money on one of his ventures u front, but I wouldn't touch Wall Street's stock offerings. Musk actually said, in an interview I saw, that his desire was to push the science, even if he failed and lost his money. I suspect the price to book on the stock is greater than 1, so someone is making money on projected leverage.

The auto business isn't somewhere to go to make a fortune. If Tesla netted $10K an auto, they would need 100K units to make a billion. But model changes and overhead are massive in the auto industry. Note the many billions many make during upswings, vs the billions they lose in recessions. The difference may be 17 million units versus 14 million in the recession. That tells me profits are only made after a lot of units are sold. This tells me 2 things. Marginal unit cost is really low and organizational overhead is high. Until Tesla reaches enough units, they will never be profitable.

As far as the $250K up? That money would have to be escrowed and free of creditor attachment before I would do it. I think battery powered cars are a mistake. I would be more interested in batteries for storage of solar or wind power, or even generated power, where they could be drawn on at peak usage times.
2017-11-22 08:12:01