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The problem was never the demand for the Model 3. Tesla needs to hit specific benchmarks if it wishes to meet the expectations of its sky-high market cap and it
by lintroller 8y ago
The problem was never the demand for the Model 3. Tesla needs to hit specific benchmarks if it wishes to meet the expectations of its sky-high market cap and it simply hasn't been able to do so up to this point.
I'm sure it's a difficult problem and I'm rooting for them to figure it out but until they start to produce more cars, there's going to be people asking questions.
- danhak 8y agoThe market cap is well off its highs, which is healthy given the slower-than-expected ramp. But the ramp is happening, and overly-aggressive targets notwithstanding, what we're seeing unfold right now is objectively impressive. The company will do just fine.
- Judgmentality 8y ago> The company will do just fine. Obviously people have strong feelings about Tesla one way or the other, as it's obviously a pillar for the high-risk-high-reward ethos that gets people excited, but the future of Tesla is incredibly uncertain at the moment. Elon Musk is likely to be fired from his own company, they have to pay over a billion dollars in loans next year, their cash flow is a mess, and there is no telling when they will actually be GAAP profitable. I don't own TSLA stock nor do I have any short/put positions - but TSLA is almost as volatile as some cryptocurrencies.
- RyanZAG 8y agoFiring Musk is never going to happen. It would collapse the share price, and investors know that. They can complain, but they can't fire him and not lose a fortune all around.
- ConceitedCode 8y agoThat's what they said about Steve Jobs the first time around.
- mikeash 8y agoIs it really?
- ConceitedCode 8y agoDepends who you ask. To be fair, it is not an apples to apples comparison (pun intended). Tesla is in a very different position than Apple in the early 90's. With that in mind, the dialogue about Jobs / Musk feels oddly familiar with institutional investors having major issues and everyone else probably being too optimistic.
- mikeash 8y agoThe early 90s? Jobs got fired from Apple in 1985, and he was never CEO during that first time there.
- ConceitedCode 8y agoYou are correct. It all kind of blurs together at this point :) Thanks for pointing that out.
- chc 8y agoApple did start spiraling after they fired Jobs. By the mid-'90s, Michael Dell famously said Apple should just shut down and give the shareholders their money back. What finally turned Apple around was Jobs coming back, and they wouldn't have even made it that far if Microsoft hadn't felt the need to put them on life support in order to stave off monopoly charges. So I'm not sure that's an example of it not being a crazy decision.
- pooya13 8y agoDid Steve Jobs own a big portion of the Apple's stock? Elon and his relatives / close friends own a big chunk. (25-30% if I am not mistaken
- 8y ago
- thematt 8y agoThe bond market certainly doesn't think they will do just fine. Their debt is commanding a hefty interest rate.
- acchow 8y agoElon doesn't really care about the stock price. It's usefulness is when you want to raise capital by floating shares; but Elon will just do that a lower price by diluting ownership more.