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Tesla not out of the woods yet

Tesla not out of the woods yet

First off, I am a huge fan of Tesla and hope that they get through the launch of the Model III without a hitch. That being said, I think there are huge hurdles for them to overcome. As they burn through cash, and leverage harder than anyone else with the potential buy of Solar City. On top of that lately they have negative press almost every day since the launch of the model X with all of its initial problems, and now the press about the auto pilot death.

Maybe all of us who are waiting for the model III should instead try to figure out how to get an S instead.

risingsun | 6 July, 2016

Tesla has a market cap of 33 billion dollars which means they can raise capital at an arguably good rate. Musk has a lot of credibility given his success with the Model S and SpaceX. The accelation of sustainable transport and sustainable energy will cost the the fossil fuel industry and utlities 100's of billions of dollars. Obviously, the people who will lose due to renewable energy and going to try to put out as much negative press out about Tesla.

risingsun | 6 July, 2016

Tesla has a market cap of 33 billion dollars which means they can raise capital at an arguably good rate. Musk has a lot of credibility given his success with the Model S and SpaceX. The accelation of sustainable transport and sustainable energy will cost the the fossil fuel industry and utlities 100's of billions of dollars. Obviously, the people who will lose due to renewable energy and going to try to put out as much negative press out about Tesla.

steve.tarara | 7 July, 2016

Haha, you think we should spend another $60k to get model S because you don't think they can produce a $35k car?

David N | 7 July, 2016

Elon has said many times that Model 3 is absolutely crucial to the success of Tesla. If Model 3 release is anything less than stellar and award winning, then it is a possibility that Tesla's days are numbered.
Bad reviews, poor quality, poor owners expireance, poor service, poor delivery etc...
Any of the above will lead to unsatisfied owners, bad word of mouth will spread like widfire, hence fewer interest, hence fewer sales, hence Elons goal of sustainable transport will come to a grinding halt.
model 3 owners are not "early adopters", they will not tolerate anything less than high quality value for their hard earned money.
So you mention that Tesla is not out of the woods yet,
Hey, what could possibly go wrong?

carlk | 7 July, 2016

If you look at the history Elon had been through much harder time than the current situation. In 08' he was down to his last million $ with money enough to run Tesla for only one week but he pulled it through. Compares to then he's in financial heaven now. And for the difficulty of making Model 3 it is nothing compares to design and manufacturing your own rocket from scratch and be able to make successful launches, and landings too. Don't worry about it Tesla will make it.

Mike83 | 7 July, 2016

They are making them.

bricha55 | 7 July, 2016

@steve.tarara

My comment on buying a model S wasn't referring to distrust that Tesla can't build a 35k car, it was instead saying that supporting them now puts them on better financial ground today, which helps Elon's dream of changing the world closer to reality.

warren_tran | 7 July, 2016

carlk,
*If you look at the history Elon had been through much harder time than the current situation. In 08' he was down to his last million $ with money enough to run Tesla for only one week but he pulled it through. Compares to then he's in financial heaven now.*

A billion dollar here, a billion dollar there. Soon Tesla won't even have another million to spend. $3 billions for Solar city. $4.5 billions for China plant.

How long do you think the investor and financial market will allow Tesla to keep borrowing money if they keep bleeding money with the current trend.

* for the difficulty of making Model 3 it is nothing compares to design and manufacturing your own rocket from scratch and be able to make successful launches, and landings too. Don't worry about it Tesla will make it.*

SpaceX is not Tesla. Tesla is not SpaceX. Employee at SpaceX do not work at Tesla. Does that make sense.

I just want them to focus on producing the Model 3 as a quality car. Production ramp up is a critical phase when currently, they can't even meet their planned 17,000 cars per quarters. How are they able to produce 500k by Elon promised end of 2018.

Faith is a strong believe similar to religion when history proven deadline hasn't been meet for Tesla. I love to see Elon prove the world is wrong regarding his outrageous production statement.

warren_tran | 7 July, 2016

If they are so strong financially, why do they need to raise 1.7 billions in recent stock dilution?

bb0tin | 7 July, 2016

@warrentt
You said "How long do you think the investor and financial market will allow Tesla to keep borrowing money if they keep bleeding money with the current trend."
Tesla has had no problem raising funds so far. They are a more sound company now than in the past.

You said "SpaceX is not Tesla. Tesla is not SpaceX. Employee at SpaceX do not work at Tesla. Does that make sense."
Not in the least.

You said " regarding his outrageous production statement."
It has been done before, and is being done now, by other car companies.

Mike83 | 7 July, 2016

The more appropriate title is
Stock Shorts not out of the woods yet.

carlk | 7 July, 2016

@warrentt

Ability to raise $1.7 billion is exactly why I say it's financially strong. People who invest know Tesla is not going to waste the money. It's using the money to build a great enterprise. Investors who want just quarterly return can very well buy dividend stocks.

warren_tran | 7 July, 2016

Financially strong is the like of Apple who have hundred of billions free cash. Tesla is have great credit rating.

It is Apple vs orange comparison metric. If I have 800+ credit score, does that guarantee I'm financially strong just because I have $15,000 credit card and can open equity line of credit anytime I want.

warren_tran | 7 July, 2016

Bbotin,
I didn't know Tesla represent other car manufactures. By saying someone can do it so it must be Tesla should able to do it.

It is like someone can run a mile under 6 minute then you should able to do the same?

Regard other car automaker production abilities, were they producing BEV like Tesla. How many years it took them before they able to produce 500k. Was it in 1.5 years?

bb0tin | 7 July, 2016

@warrentt
You said "I didn't know Tesla represent other car manufactures. By saying someone can do it so it must be Tesla should able to do it."
If other manufacturers do it, then you need to specify why Tesla will not, otherwise you have no valid basis for your doubt.

You said "were they producing BEV like Tesla."
What has that got to do with anything?
Do you think the Gigafactory cannot produce the required packs?

BozieB | 7 July, 2016

If you believe in the Tesla business model, and you want that model to succeed, if you share the belief that we and our world CAN and SHOULD do better. then why are so many of you feet dragging , go to church only on Sunday and donate only when made to do so, foot solders cowering whimpering in the dark.?
If one man can make such a great change in so many lives,, surely we each can step up and help. I only wish I had so much foresight and true care for my fellow man as Elon.
Be positive, not just give lip service. Be advocates, not just another "me too" who want to tear down what they only wish they could've created.
Unless you truly want to stay locked into this "We've Always done it this way". mentality

BozieB | 7 July, 2016

PS I also belief in science, the future and yes, the kindness of people to step up and pull together as needed.
America is Great, remember how those ideas happened and,,, ASSIST
Don't make Tesla do it all alone.

carlk | 7 July, 2016

@BozieB

Absolutely. If you believe the man and the cause, or what he has made for you then do your share to help and enjoy. If you don't then don't get involved. Just sit on the sideline to watch how it goes. There is really no need for the negativity that does no one any good.

compchat | 7 July, 2016

bricha55,

If you're such a huge fan why are you shooting off your mouth about something you obviously know little about. Do you own/lease a model S or X. Did you order a model 3 ? Have you ever taken a test drive in any of Tesla's vehicles (including the first electric sports car)?

If not you're just another troll.

Tesla, it would be helpful to have a search function so we could root out these trolls.

dansplans | 7 July, 2016

Let me get this straight. If you do not own or reserve a Tesla, or perhaps at least have been on a test drive, you are a troll?

bricha55 has stated that they support Tesla, even suggesting that buying now would help assure the future, rather than waiting for the new model. They are apologetic even for showing any doubt.

warren_tran | 11 July, 2016

• The SEC is investigating Tesla Motors (NASDAQ:TSLA) for potential violations of securities law, according to The Wall Street Journal which quotes an unnamed source.
• The probe is centered over the disclosure of an accident involving the Autopilot system. The automaker has maintained that the incident was a "non-material" event. More details to follow

Mike83 | 11 July, 2016

Who is investigating the WSJ? The SEC should really do some dot connections on the Stock shorters.

Of course the shorts are now losing and need something to stem the tide. Hope they get smashed good this time.

warren_tran | 11 July, 2016

Mike83,

Are you taking some drugs? WJS is not a trading company so SEC can't investigate.

Mike83 | 11 July, 2016

No drugs. Perhaps you didn't understand. Don't have time to explain as I doubt your motives and your insane comment. Your on ignore.

warren_tran | 11 July, 2016

Sure. I wish I can put several of you on ignore. Go ahead and shoot the messenger.

Drdpharris | 11 July, 2016

I guess all of us purchasing a house are "bleeding money" -- its called investing in infrastructure so product can be made ... pretty simple concept. Tesla makes money, they choose to reinvest it.