We Tesla Fanatics have visions of: TM, the “S,” the market, the future. Yesterday I read this article about batteries, EVs, manufacturing, the marketplace by John Peterson.
Mr. Peterson answered some feedback to his article. Another of his concerns is the financial viability of TM.
“R&D is slowly grinding down the cost of batteries. The idea that changes in battery performance or cost will come quickly is the great lie of the EV world. It simply can't happen, no matter how fervently you wish upon a star.”
“Batteries are not a fuel source. They're fuel tanks that let you substitute electricity from coal for oil. Unfortunately they're a fuel tank that costs several thousand dollars per gallon of gas equivalent.”
“Batteries are very good at increasing the efficiency of an automobile. When they're used as efficiency devices they reduce the total amount of fuel burned from all sources. As a fuel tank substitute, batteries cost thousands of dollars per equivalent gallon of tank capacity. When batteries are used as fuel tank substitutes the total amount of fuel burned from all sources does not change. It simply moves from the car to a coal burning power plant.”
“After next week's earnings report, Tesla will be trading at twenty -three times book value. Even Apple, the greatest tech company success in history, only trades at FIVE times book value.”
Perhaps Mr. Peterson is playing the devil’s advocate – Perhaps not. So, what do you think? Please be specific.