Is GM really better then Tesla?

Is GM really better then Tesla?

"Furthermore, Tesla's market cap is nearly two-thirds of General Motors' market cap. This is despite the fact that General Motors has a history of selling 10 million cars at a profit each year and Tesla sold less than 100,000 cars last year at a loss. They would have to sell 6.6 million cars this year to justify its current valuation. With less than 400,000 cars on pre-order that doesn't appear likely anytime soon."

Got to love the way that the author spun this article. GM may sell 10 million cars a year, but at a profit? So then the big GM bailout that we gave them was because they make a profit? Guess maybe letting them file bankruptcy helped their numbers. Personally, I was ready to watch GM crash and burn...and I actually like GM.

What I see is Tesla spending quite a bit of money on infrastructure. Between the Gigafactory, tooling, Supercharger expansion, they are doing the things required to get to production for their next car. Costs money to buy land and build stuff...aside from just cars.

I had a brother in law tell me that Tesla took a loan from the government which is true, but he didn't even know that Tesla paid the money back with interest early. Several years earlier than they needed to. That was one of his arguments when he told me that Tesla is bleeding cash. Guess I wouldn't call it bleeding, but investing. The loans came with all kinds of stipulations. I think they paid it back early so that they could expand and run the company as they saw fit.

Sure would be nice if Tesla would put a picture of the Model 3 on my Tesla page so I could see a picture. Maybe let me change the color and find one I like. Would be a great way for them to help determine which colors people would find most appealing. Give me something to do while I wait...

RedShift | 2016年5月15日

Stock price tracks future potential for growth companies. Nothing more to say other than that.

biggestfan | 2016年5月15日

Tesla is still a small company...a small company with big plans. Once the initial cost of building a factory that generates all the power they need is complete, the operating expenses for the facility will be very low. Requires planning and money. Still wish I had invested heavily when they first went public. I would be driving a loaded Model S P90D with ludicrous instead of waiting 18 months to 2 years for my Model 3. | 2016年5月15日

Apples to Oranges.
- People aspire to own a Tesla. Tesla is also is heavily investing in a safer future.
- Heavy marketing, advertising and strong anti-competitive practices at GM are used to sell environmentally destroying vehicles. GM also has huge liabilities with massive recalls and user deaths from failures within the company.

Al1 | 2016年5月15日

Big chunk of GM revenue is subprime loans and big chunk of their assets is slow moving inventory. Their PP@E risks to turn worthless overnight.

Red Sage ca us | 2016年5月17日

My Aunt traded in her Cadillac CTS for an ATS. Both are really nice cars, far better than I deserve to drive. The Tesla Model ☰ will be better than both of them, and I will own one.

biggestfan: Be sure to point out to your brother-in-law that Ford got 12 times as much money ($5,900,000,000) from the very same Advanced Technology Vehicles Manufacturing (ATVM) program and has not paid back a single dime. They did make a bunch of hybrids, a couple of plugin hybrids, and the Focus Electric though. Nissan was originally reported to have taken about $2,900,000,000 in loans, but are now shown with only $1,400,000,000 outstanding -- still three times as much as Tesla Motors got.

http://energy . gov/lpo/services/atvm-loan-program

carlk | 2016年5月18日

Disrupter and disruptee. That is the difference.

In 2000 Netflix's CEO went to Blockbuster, which had market value hundreds times of Netflix, and offered to sale the company for $50 million. Blockbuster CEO passed up the chance to buy. Fast forward to 2016 Netflix is worth a thousand times that much and Blockbuster is history. Good thing for Netflix investors that it did not happen although smart money would still follow Hastings intead of Blockbuster.

Paraphrasing the article "in 2030 former GM and VW workers all over the world must cringe every time they hear the words EV and Model 3".

Tesla-David | 2016年5月18日

@carlk +1 well said!

carlos | 2016年5月22日

@CarlK +2 !!!