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I'm skeptical of Musk's claim that Teslas are an "appreciating asset". That doesn't make sense in the automotive world, and it's claims like this that make him

I'm skeptical of Musk's claim that Teslas are an "appreciating asset". That doesn't make sense in the automotive world, and it's claims like this that make him lose credibility.

deleted 8y ago
[deleted]
screye 8y ago
It is pretty disingenuous on his part. The small set of cars whose selling price does appreciate satisfy a set of requirements which the Tesla doesn't. 1. Discontinued / Very few produced -> Tesla is ramping up production 2. Iconic design -> Teslas do not have stand out look and the same design language is being used for other Tesla vehicles too. 3. Movie / cult classic -> Tesla does not have its 'Back to the Future' or 'Fast and the Furious'. 4. Unique features not present in other cars-> Tesla doesn't necessarily have any Lastly, tablet and screen based designs are ones that age the worst. So, Tesla is at a disadvantage there. The car collector's market is completely at odds with what Tesla offers. Tesla lovers are high technology folk, who always want the latest and the greatest. They do not appreciate dated designs. Car collectors are the ones most averse to electric cars (as of now). I think Teslas will hold their price better than other brands, but they certainly won't appreciate. (may be the original roadster, because they made so few of them)
anbop 8y ago
Musk doesn’t have any “oracle” credibility to squander though. He’s known for many absurd utterances from his SEC violations to his pedophile accusations. The words coming out of his mouth are not given high credence by the investor class.
whoisjuan 8y ago
Well, it sounds pretty disingenuous, but you can still find some meaning out of that. An asset by definition is a useful/valuable thing or person. If Teslas become better just with OTA updates, then they become more useful and valuable for the person that owns them. Of course, financially speaking it doesn't make sense (they will depreciate like any other car that rack up miles), but I see some merit in that statement since no other vehicle in the market currently can get better just with the past of time (as you get new updates). I don't know if his statement was about the financial depreciation of a Tesla or not, but if in 6 months, my car is better than it is today, with no custom parts or additions, you can undoubtedly claim that its value (the perception of what the car is doing for me) increased. Though, not its financial value.
gambiting 8y ago
>>That doesn't make sense in the automotive world Well, there are plenty of cars which are appreciating from the moment you pick them up from the dealership. Rare limited editions of Lamborghinis, Ferraris and Porsches all come to mind. But those are rare exceptions from the rule, and Teslas are nowhere near that status.
zarkov99 8y ago
Appreciating in the sense that they become more valuable, in utility, with time. Appreciating like software, not like a stock.
rladd 8y ago
What I understood him to mean by that is that, because the software of the vehicle will be updated with more capabilities, the value of the car, perhaps not in monetary terms but in terms of utility, would increase over time. Of course the use of the term 'asset', since it is typically used for financial value, is confusing if that was his intended meaning.

I'm skeptical of Musk's claim that Teslas are an "appreciating asset". That doesn't make sense in the automotive world, and it's claims like this that make him lose credibility.

deleted 8y ago

[deleted]

screye 8y ago

It is pretty disingenuous on his part. The small set of cars whose selling price does appreciate satisfy a set of requirements which the Tesla doesn't. 1. Discontinued / Very few produced -> Tesla is ramping up production 2. Iconic design -> Teslas do not have stand out look and the same design language is being used for other Tesla vehicles too. 3. Movie / cult classic -> Tesla does not have its 'Back to the Future' or 'Fast and the Furious'. 4. Unique features not present in other cars-> Tesla doesn't necessarily have any Lastly, tablet and screen based designs are ones that age the worst. So, Tesla is at a disadvantage there. The car collector's market is completely at odds with what Tesla offers. Tesla lovers are high technology folk, who always want the latest and the greatest. They do not appreciate dated designs. Car collectors are the ones most averse to electric cars (as of now). I think Teslas will hold their price better than other brands, but they certainly won't appreciate. (may be the original roadster, because they made so few of them)

anbop 8y ago

Musk doesn’t have any “oracle” credibility to squander though. He’s known for many absurd utterances from his SEC violations to his pedophile accusations. The words coming out of his mouth are not given high credence by the investor class.

whoisjuan 8y ago

Well, it sounds pretty disingenuous, but you can still find some meaning out of that. An asset by definition is a useful/valuable thing or person. If Teslas become better just with OTA updates, then they become more useful and valuable for the person that owns them. Of course, financially speaking it doesn't make sense (they will depreciate like any other car that rack up miles), but I see some merit in that statement since no other vehicle in the market currently can get better just with the past of time (as you get new updates). I don't know if his statement was about the financial depreciation of a Tesla or not, but if in 6 months, my car is better than it is today, with no custom parts or additions, you can undoubtedly claim that its value (the perception of what the car is doing for me) increased. Though, not its financial value.

gambiting 8y ago

>>That doesn't make sense in the automotive world Well, there are plenty of cars which are appreciating from the moment you pick them up from the dealership. Rare limited editions of Lamborghinis, Ferraris and Porsches all come to mind. But those are rare exceptions from the rule, and Teslas are nowhere near that status.

zarkov99 8y ago

Appreciating in the sense that they become more valuable, in utility, with time. Appreciating like software, not like a stock.

rladd 8y ago

What I understood him to mean by that is that, because the software of the vehicle will be updated with more capabilities, the value of the car, perhaps not in monetary terms but in terms of utility, would increase over time. Of course the use of the term 'asset', since it is typically used for financial value, is confusing if that was his intended meaning.