Tesla on ABC World News Oct 25th, 2011...

Tesla on ABC World News Oct 25th, 2011...

I just caught a story on ABC World News tonight about government grants to green tec companies, and they brought up Tesla and Karman Fisker. The interviewer questioned Tesla VP Diarmuid O'Connell, with regard to their SEC filings stating that they "expect continuing losses for at least the forseeable future", and if they don't make a profit, they might not be able to pay back those government grants, to which Diarmuid responds, "...well, we will make a profit".

Personally, I would have put FAR more money into Tesla, over GM, because GM is a JOKE! Their business model is bound to fail again, because they are thinking backwards, and not forwards.... Big unions, poorly built cars, weak designs, no future vision. I have only seen a couple of their new hybrid EV cars on the road, and they are not much to look at. Otherwise, their big commercial push is the new 300, with a former hip-hop artist plugging how Detroit is now cool, etc. Seriously? Who do they think they are kidding? Detroit is a cesspool, and no one I know thinks of 'cool' when the word Detroit is mentioned, but rather $100.00 delipadated homes, in drug infested neighborhoods.

The FACT is, Tesla is new, fresh, innovative, and built in America with the kind of brilliance that made Apple Computers the BIGGEST company on the planet!
I know it's a risk starting a car company in America, because the big three automakers here don't want anyone else to make the look worse than they already do, but seriously, they should be embracing Tesla, because once the Model S hits the market, they all know dam well, they will be doing everything they can to jump on the bandwagon with something that looks just like it.

Mycroft | October 31, 2011

Don't hold back viao44, tell us how you really feel. :)

A telling problem with Chrysler's ads is that they were actually trying to promote the new 200. The 300 doesn't need any marketing since it's selling quite well. But everyone who sees the ad thinks they're promoting the 300 and don't know anything about the 200.

viao44 | October 31, 2011

lol @ Mycroft

I am just hating the haters.

Crow | October 31, 2011

Tesla announced that they sold out of their first year's production and that they are projecting to be profitable in 2013.

David M. | November 1, 2011

@Andrew18 - Your $40K deposit is a lot of cash, but it pales in comparison to what Elon has on the line. After selling PayPal, he could have easily invested the proceeds in tax free bonds and comfortably lived off the interest for the rest of his life. Elon is brilliant, and passionate about Tesla. With his intimate knowledge about Tesla and the industry, he placed the ultimate bet (he's all in). I don't know of anyone else (Steve Jobs included), who bet it all on his own company (at this dollar magnitude).

Knowing that, I am very comfortable with my Model S deposit, and my investments in TSLA stock. The worldwide automotive industry will take notice in several months when the Model S begins shipping to customers.

Ten years ago, if somebody told me that in 2012 I would be driving down the highway at 70 mph in a full sized luxury car that runs only on electricity, (for 300 miles), I would have laughed in their face, and said "that stuff only happens in sci-fi movies.


Mycroft | November 1, 2011

David M, not to go off the topic rails, but Jobs almost lost everything with Next and Pixar. Toy Story saved his butt in the latter case and Apple the former.

I agree, Elon is all-in and if two years ago you told me I was going to empty my savings of $40k to reserve a $100,000 car, I would have flat out said you were nuts; there's no way I would do that. Well, never say never, as they say.

Thumper | November 1, 2011

Most of the really large fortunes in America were a result of some form of largess from government. Read Wealth and Democracy: A Political History of the American Rich (Hardcover) by Kevin Phillips who was a speech writer for Nixon. It details the deals over most of our history. It is a myth promulgated by the super rich that they earned it all by hard work and cleverness. Even the poor work hard and are often clever.

Thumper | November 1, 2011

The link to Amazon for the Kevin Phillips book did not come out as a hyperlink. Sorry. Also I would like to point out to @ jfeister that we do not live in the ideal libertarian world you hope for, China and the EU plus others routinely heavily subsidize both start-up and established industries. We have to play it where it lies.

David M. | November 1, 2011

@Mycroft - Oh yeah, forgot about that. Thanks for the correction. And yes, it will be really cool next year driving a car that was considered science fiction less than 10 years ago.

BYT | November 1, 2011

Hot of the press, but I think we all already knew this... :)

brianman | November 1, 2011

@Mycroft and David M

You might think making big bets is rare and a sign of confidence, but that doesn't impress me.

There are plenty of folks in Vegas that make big bets regularly. Some consider it a disease.

Robert.Boston | November 1, 2011

Economists seeing a big bettor would infer one of two things: (a) a risk-seeking individual or (b) someone with private information about the likely outcome. I admit that Elon probably falls into the risk-seeking category, but I believe that he has better information than you or me about the likely success of Tesla.

Mycroft | November 1, 2011

@brianman: "You might think making big bets is rare and a sign of confidence"

No, merely commitment.

Elon's a pig, not a chicken:


michiganmodels | November 1, 2011
Mel. | November 1, 2011

Now if you want to complain about subsides, how about the billions going for Corn, sugar and tobacco. Leave tesla with a small loan out of it

Timo | November 1, 2011

Tesla loan is not subsidies or bailout money. It is DOE ATVM loan, a program that is just good business to government and taxpayers.

jackhub | November 2, 2011

There seems to be a lot of misunderstanding about the extent of government subsidy in this country. I sit on the bank of the Ohio River and watch humongous 12-barge loads of 'stuff,' including lots of coal, pushed up and down the river. They pass through a canal built and operated by the Army Corp of Engineeers. A second lock was just completed at a cost of over 1.5 billion dollars. Those barges pay the same thing people pay when they take their little fishing boats through . . . ZIP! There are dozens of these canals on the waterways of the US. Without them, the rivers would not be navigable for commerce. The subsidies they are aplenty.

jackhub | November 2, 2011

As for the Tesla loan, it was made under legislation passed in 2007, and approved by the President at that time.

Timo | November 2, 2011

As I said Tesla loan is not subsidies or bailout money. It is DOE ATVM loan. A loan. That's something you pay back. Bailouts that GM & co got at the approx same time are completely different thing.