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Technology is not the only space where Tesla is innovating. Tesla has also very innovative financing and they are really starting to stretching it. Tesla made

Technology is not the only space where Tesla is innovating. Tesla has also very innovative financing and they are really starting to stretching it. Tesla made financial bet that they deliver high volumes of Model 3. It does not matter if Model 3 is good car and customers love it. Tesla must ramp up their production very fast or Tesla runs out of cheap money. Tesla has no problems with customers. They love the car with passion. It's the investors who will choke Musk to death later this year if he has to ask more money to continue with struggling production. He will get the money but it will have high interest rate and Tesla stock will come down 30-50 percent. Currently Tesla is producing 20% of it's target. Their production curve is not growing steeply enough. In fact it's slowing down. https://www.bloomberg.com/graphics/2018-tesla-tracker/ https://www.bloomberg.com/graphics/2018-tesla-tracker/ ps. High flying arguments that don't look into details of each case, like "Never bet against Musk" or others have solved technical difficulties too, are not really useful for investor.

qaq 9y ago
No doubt that's a possible scenario and yet does not mean it will not recover.
- Nokinside 9y ago
  It absolutely means that. Tesla is not going to financially recover if Model 3 fails to deliver within a year. Musk is taking huge risks and so far it has paid out. That's a thing to admire in him. But the risk taking means that there is no fallback. Model 3 will either make or break Tesla. They have to deliver Model 3 in large volumes or it's game over. They have no time or money to try again or fall back into the small volume luxury car business where they have time to develop the technology. Clock is ticking.
  - qaq 9y ago
    "Tesla is not going to financially recover if Model 3 fails to deliver within a year" again define deliver if they are at 50% of the planned rate by the end of the year but on a good trajectory to reach 100% within 4 month or whatever else situation might be it's a scale.
    - Nokinside 9y ago
      They are not in the planned trajectory. They are in a trajectory of constantly revising their plans downward while hemorrhaging several billions per year. Over 1058 per week is not half of the 2500 per week is not the 5000 per week is not 10,000 per week that was the plan. The issue is that their spending grows much faster than their plans for delivery and they will end up diluting their stock.
      - qaq 9y ago
        Sure there is a difference between "diluting their stock" an going belly up though.
rcMgD2BwE72F 9y ago
Check the Bloomberg tracker again. The curve has changed.

qaq 9y ago

No doubt that's a possible scenario and yet does not mean it will not recover.

Nokinside 9y ago
It absolutely means that. Tesla is not going to financially recover if Model 3 fails to deliver within a year. Musk is taking huge risks and so far it has paid out. That's a thing to admire in him. But the risk taking means that there is no fallback. Model 3 will either make or break Tesla. They have to deliver Model 3 in large volumes or it's game over. They have no time or money to try again or fall back into the small volume luxury car business where they have time to develop the technology. Clock is ticking.
- qaq 9y ago
  "Tesla is not going to financially recover if Model 3 fails to deliver within a year" again define deliver if they are at 50% of the planned rate by the end of the year but on a good trajectory to reach 100% within 4 month or whatever else situation might be it's a scale.
  - Nokinside 9y ago
    They are not in the planned trajectory. They are in a trajectory of constantly revising their plans downward while hemorrhaging several billions per year. Over 1058 per week is not half of the 2500 per week is not the 5000 per week is not 10,000 per week that was the plan. The issue is that their spending grows much faster than their plans for delivery and they will end up diluting their stock.
    - qaq 9y ago
      Sure there is a difference between "diluting their stock" an going belly up though.

rcMgD2BwE72F 9y ago

Check the Bloomberg tracker again. The curve has changed.