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> Either way, it's bad news for Tesla As someone in the (US) industry, everyone's hurting right now, not just Tesla. The GM plant closures have had a large rip

> Either way, it's bad news for Tesla As someone in the (US) industry, everyone's hurting right now, not just Tesla. The GM plant closures have had a large ripple effect on suppliers. And beyond that, in general it seems like there's been a lot of belt-tightening over the last year. Whether self-fulfilling prophecy from fears of a recession or something else, I don't know.

navigatesol 8y ago
>As someone in the (US) industry, everyone's hurting right now, not just Tesla Yes, that auto market is cyclical. That's why it's nice to be producing tons of cash flow and income, instead of burning billions of dollars.
- Dumblydorr 8y ago
  Tesla isn't burning billions anymore, have you seen their last two quarters profits? Now, especially if they cut investment into new factories, they will have trouble bringing new products but they could still make 7k cars weekly and press pause on R and D.
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- whttheuuu 8y ago
  What? They aren't burning any money let alone billions lol
prolepunk 8y ago
The weird thing about GM closures was that GM seemed to be doing fine, and then they axed whole bunch of factories and discontinued most of the sedans and Chevy Volt.
- Gpetrium 8y ago
  To me, GM's closure was aimed at 'trimming the fat' to put more emphasis on areas where they are more profitable, a shift to the tech side of cars and in preparation for an economic downturn.
- dragontamer 8y ago
  Cars are highly cyclical, which means future demand can be predicted very well. Cars are cyclical because they last for 5 to 15 years. When everyone is done buying new cars, there's a lull and car companies need to cut back supply. "Everyone" is hurting because "everyone" is part of the same cycle in the industry. Ford, GM, etc. etc. have all closed plants in anticipation of the lower-demand over the next year or two.
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navigatesol 8y ago

>As someone in the (US) industry, everyone's hurting right now, not just Tesla Yes, that auto market is cyclical. That's why it's nice to be producing tons of cash flow and income, instead of burning billions of dollars.

Dumblydorr 8y ago
Tesla isn't burning billions anymore, have you seen their last two quarters profits? Now, especially if they cut investment into new factories, they will have trouble bringing new products but they could still make 7k cars weekly and press pause on R and D.
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whttheuuu 8y ago
What? They aren't burning any money let alone billions lol

prolepunk 8y ago

The weird thing about GM closures was that GM seemed to be doing fine, and then they axed whole bunch of factories and discontinued most of the sedans and Chevy Volt.

Gpetrium 8y ago
To me, GM's closure was aimed at 'trimming the fat' to put more emphasis on areas where they are more profitable, a shift to the tech side of cars and in preparation for an economic downturn.
dragontamer 8y ago
Cars are highly cyclical, which means future demand can be predicted very well. Cars are cyclical because they last for 5 to 15 years. When everyone is done buying new cars, there's a lull and car companies need to cut back supply. "Everyone" is hurting because "everyone" is part of the same cycle in the industry. Ford, GM, etc. etc. have all closed plants in anticipation of the lower-demand over the next year or two.
- deleted 8y ago
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