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This could be stupidest article about Tesla ever

This could be stupidest article about Tesla ever

"Tesla is in danger of becoming the new Saturn"

https://finance.yahoo.com/news/tesla-danger-becoming-saturn-155238975.html

The guy who wrote this tries to compare Model 3 and Tesla with Saturn.

Remember when Saturn would announce a new car and people would line up to place a reservation? The amazing 0-60 times?

EDIT : per request, here is text of article...

An exterior view of a Tesla showroom on Monday in Corte Madera, California. Worldwide preorders for Tesla's Model 3 surpassed 275,000 in the first week that preorders were made available to the public.

Tesla, for all of its innovation and master plans to upend driving, could end up becoming something ordinary.
With the announcement of the Model 3 last week, Tesla pulled off what many would consider its most ambitious product unveiling to date.

Business Insider reported on the avalanche of preorders that followed — a number that easily climbed past 250,000 in less than three days.

Tesla plans to build 500,000 cars annually by 2020 — largely with the help of the $35,000 Model 3.

But, as Erich Joachimsthaler with Vivaldi Partners Group told Business Insider, while Tesla is busy transforming the industry, it could also transform itself into your run-of-the-mill car company.

"If General Motors' Chevy Bolt is already hugely successful in the market by the time the Model 3 comes out, or BMW or Mercedes' alternatives gain traction, I think that Tesla's brand would be diminished," Joachimsthaler said.

"It would just be another car manufacturer in the market, and the 500,000 units it's expecting to produce in a few years is a nonevent."

Joachimsthaler said that because Tesla revealed the Model 3 so early — more than a year ahead of its earliest production target — its larger, deep-pocketed rivals could gain a competitive edge.

Tesla's story is curiously similar to that of the defunct car company Saturn, Joachimsthaler suggested. "Saturn was the biggest celebration at the time in the 1990s, and then it went away," he said.

General Motors is closest to putting a mass-market electric car on the street. The Chevy Bolt, with its estimated 200-mile battery range, is expected to arrive a full year before the Model 3.

While the Bolt may now be a deep second to the Model 3 in terms of desirability, GM can do something Tesla can't. As Business Insider's Matt DeBord noted, Tesla's Detroit rival can afford to lose money on the Bolt, and it can even slash prices without breaking a sweat. Tesla, on the other hand, needs to sell its Model 3s.

Tesla in the 2010s almost looks like Saturn in the 1990s

Saturn wasn't selling a fleet of electric cars, but, like Tesla, Saturn launched amid considerable celebration — and doubts — about its arrival.

"People either admired the company and its cars, or were skeptical, cynical and belittling of anything it did," David Hanna wrote in Forbes.

Hanna's 2010 article points to some characteristics about Saturn then that resemble Tesla now:

Saturn was among the best-selling cars in 1994. (Tesla's Model S outsold the Mercedes S-Class, a luxury-segment mainstay, in 2015.)
Saturn consistently achieved top owner and customer sales satisfaction ratings by J.D. Powers. As late as 2000, it ranked second only to Lexus. (Consumer Reports once called Tesla the best car it ever drove.)
In its first decade, enthusiasm among Saturn owners was "off the charts," Hanna recalled. "100,000 owners attended two 'homecoming' celebrations in 1994 and 1999." (Tesla owners are also considerably hyped about the company and its CEO, Elon Musk.)

Of course, there were also some larger forces at play in GM's executive boardroom and the United Auto Workers union ranks that helped usher in Saturn's demise. No such bureaucratic turmoil seems to exist at Tesla.

Unlike Saturn, Tesla's biggest challenges lie in the follow-through. That means getting the production version of the Model 3 to market on time, meeting its sales projections this year of 80,000 to 90,000 units, avoiding further complications with Model X production, and finishing the Gigafactory.

"These are huge liabilities," Joachimsthaler said, "but they are risks worth taking."

dsvick | 06. April 2016

And just how could the Bolt be "hugely successful" if they are only making 30,000 a year?

FelixMendeldog | 06. April 2016

I would like to read this so I can laugh/get pissed off at the stupid author, but we should not feed the click-bait sites. Please consider pasting the text here so no one on this forum is tempted to give them any clicks.

Octagondd | 06. April 2016

Yahoo Finance hates Tesla for whatever reason. They are probably all shorting it and getting screwed. Never click a yahoo finance article about Tesla.

dnland | 06. April 2016

"If General Motors' Chevy Bolt is already hugely successful in the market by the time the Model 3 comes out, or BMW or Mercedes' alternatives gain traction, I think that Tesla's brand would be diminished," Joachimsthaler said.

So, Yahoo finance decides to use the head of Vivaldi Partners Group as their primary source for this article who is comparing Tesla to Saturn. I'm sure these unbaised criticisms have nothing to do with their extensive client list that includes names like BMW Group, GM, Ford, Hyundai, ExxonMobil, as well as a whos who of heavy industry. Nice "reporting" Yahoo.

Al1 | 06. April 2016

I think the author really meant to say: If Model 3 is already hugely successful in the market before it even comes out, Chevy, BMW or Mercedes' brands would be greatly diminished.

Red Sage ca us | 06. April 2016

Uhm... The only reason that Saturn is gone is that General Motors' Unions demanded it as a condition of accepting the terms of their concessions during bankruptcy proceedings. Since GM was also being forced by the US Government to reduce their number of brands, they went ahead and did it. Unions hated Saturn because it was the only non-unionized division of GM and proved Unions were not needed to produce cars.

Zakynthos | 06. April 2016

This one really is ripping on Tesla too. A deluge of attacks about Tesla's lack of innovation, citing a multitude of emerging tech in battery's and competing projects. Attacks on the Powerwall, Supercharging tech, etc. It calls the Model X a "disaster" because of "ultra-slow motion" delivery's and a myriad of problems. I think initial problems are to be expected on a new car launch and Tesla is quick to correct them. The article, written by "VW Staff" is completely on the offensive against Tesla calling it a Deception. It seems to suggest that Tesla is on the brink of failure and that other's will soon catch up and surpass Tesla. But I think Elon know's that they will need to licence new technology which may be better than their own. Nonetheless Elon has his own solid set of engineer's so I'm sure they will continue to set themselves apart in a variety of ways.

http://www.valuewalk.com/2016/04/the-tesla-motors-inc-tsla-deception/

MarlonBrown | 06. April 2016

The only reason Saturn came and went is because their cars were creepy. Yes people were so desesperate for innovation that they fell for a false messiah. I laugh so hard reading this non sense. The author doesnt understand anything about cars. I already pointed out that Tesla should adjust deposit price in order to create a balance between number of orders, capacity and profitability. I tend to believe that reaching 500,000 and maybe 1 million after part 2 is shown is not in Teslas interest.

Chunky Jr. | 06. April 2016

The press, and analysts, and the stock, would go bonkers if there were 1 million reservations for Model 3 at $1K apiece. 1 million would be $1B in crowd funding for Tesla, it would show huge demand, drive up the stock, and allow Tesla to do another stock offering to raise even more money to build additional lines and whatever else they want to do.

They may not be maximizing profits in the short term by doing $1K reservations, but in the long term it could be a much better outcome for them.

JeffreyR | 06. April 2016

I started my "Tesla Advantage" post because of this post. Thanks @Chunky Jr. for the inspiration. No I need to figure out how to get Mollow to be nice.

Red Sage ca us | 07. April 2016

My guess is that something like 22,000 people will receive their Model X in the US this year.

2015 SUV Sales

22,199___Lincoln MKX
21,459___Land Rover Range Rover Sport
18,995___AUDI Q7
17,821___Land Rover Range Rover
16,474___Porsche Cayenne
15,646___Infiniti QX80
_7,906___BMW X6

Not entirely 'disastrous'.

thompsonclint | 07. April 2016

A lot of the articles posted are absurd in general. Some of these people are absolutely clueless. Someone actively authorizes this nonsense and it makes Yahoo! look like an ass.

carlk | 07. April 2016

Hmmm...I did not know there are that many MKX around. Tesla said it is producing 750 X a week in the last two weeks of Q1. That number is easily achievable.

Chunky Jr. | 07. April 2016

Model X has been a fiasco given the long delays and terrible intro event, but that is all in the past and it seems to be doing just fine right now.