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Elon Musk's finances

economist.com

81–90 of 91 posts

Re: Elon Musk's finances

#81

Earlier quoted context omitted.

Elon has specifically said he's targeted a million miles of reliabiiity on the drivetrain. Maybe not 10 times longer, but still far more service life than a traditional ICE. Tesla doesn't need to share the repair manuals. You're not touching the battery pack internals or the electric motors; if they fail, they are swapped out entirely and sent to the Gigafactory refurbishment line.

The Tesla is far more than a battery pack on wheels. There are plenty of things that can fail and need to be repaired. Failing to facilitate that means the lifespan of the car si significantly reduced.

Could you be specific what non-drivetrain components could fail that can't easily be swapped out on site or at a service center?

Re: Elon Musk's finances

#82

a business empire with a financial structure that works only if risky companies perform perfectly on ambitious plans Everyone talks about the wonders of capitalism and how risk is rewarded, but then someone comes along who is actually taking risks to achieve big objectives and the industry watchers collectively shit their pants.

A lot of economists / journalists I'm sure probably made the same remarks about Edison / Wright Bros, but history came out in their favor.

Re: Elon Musk's finances

#83
post #60

Earlier quoted context omitted.

I'm generally critical of companies which have high valuations yet continuously lose money, but in the case of Musk's ventures, I think what he's doing is so genuinely innovative that I would be more inclined to put the blame on the system than on Musk himself. Elon uses long-term thinking but unfortunately our economic system tends to favour short-term returns. In my mind there is a huge difference between Tesla los…

Technological edge Tesla has seems to be relatively thin. The innovation is in good productization, PR, risk taking and bold business strategy. If I understand it correctly, Panasonic is the more tech-heavy partner (patents for example). Tesla makes good cars with very low reliability and I see it as conscious choice. They add performance features and cool factors at the cost of reliability. Bigger car makers could h…

Can you give some examples of Tesla's low reliability?

Re: Elon Musk's finances

#84

Earlier quoted context omitted.

The Tesla is far more than a battery pack on wheels. There are plenty of things that can fail and need to be repaired. Failing to facilitate that means the lifespan of the car si significantly reduced.

Could you be specific what non-drivetrain components could fail that can't easily be swapped out on site or at a service center?

You mean other than the chassis, body panels, doors, undercarriage... Not to mention the question of repair costs and parts availability, both of which are pretty bad. Where are you going to get (say) a replacement for the incredibly complex and unreliable door handle mechanism for the Model S in a few years time once the car's no longer in production? The model-specific battery pack? All the electronics systems based around Nvidia chips that'll be long out of production?

Re: Elon Musk's finances

#85
post #84

Earlier quoted context omitted.

Could you be specific what non-drivetrain components could fail that can't easily be swapped out on site or at a service center?

You mean other than the chassis, body panels, doors, undercarriage... Not to mention the question of repair costs and parts availability, both of which are pretty bad. Where are you going to get (say) a replacement for the incredibly complex and unreliable door handle mechanism for the Model S in a few years time once the car's no longer in production? The model-specific battery pack? All the electronics systems base…

As long as Tesla is still in business, replacements will be available. They still fully support the Roadster, even providing an updated battery pack at cost to owners.

Model specific battery packs? You're aware the battery packs are all the same form factor, correct? They have an 8 year battery/motor drivetrain warranty on the S and X models, which means they'll produce compatible packs for at least 8 years from the last vehicle of a model rolling off the line.

Re: Elon Musk's finances

#86
Similar articles were written about Jeff Bezos and Amazon 20 years ago.

"no profit", "losing money every year", "unsustainable" etc...

I admire Musk. Not a huge fan of the way he is funding his goals but don't really care, do what you gota do, it's caveat emptor in the stock market.

Musk's companies are not even close to the riskiest financial structures among public companies.

Rooting for success of Tesla and SpaceX. But I don't own the stock.

Sometimes the financial press comes across like they don't want anything important to happen ever. Reward requires risk.

Re: Elon Musk's finances

#87
post #35

Earlier quoted context omitted.

Are there any credible sources that show Teslas as more environmentally friendly? Electric vehicles run on coal and natural gas to varyingly large extents.

Here you go: http://www.ucsusa.org/clean-vehicles/electric-vehicles/life-... This is a short-sighted question, however. If I buy a new gasoline-powered car, it will pollute the same amount until it is crushed. If I buy a new EV, it gets cleaner over time as more renewables are added to the grid. It's not just a question of how clean the car is today.

[deleted]

Re: Elon Musk's finances

#88

Earlier quoted context omitted.

Musk is basically undertaking a moon shot: either a huge success or crash and burn. There's not much point keeping reserves.

> Musk is basically undertaking a moon shot: either a huge success or crash and burn. I wish people would stop using the Apollo program as an example of an expensive gamble. There was no market uncertainty. The problem was complex but the physics showed it could be done. The overall plan was tested in multiple stages (which is why the first landing was by Apollo 11 ) undertaken with massive armies of bright folk over…

There are plenty of ways the moonshot could have failed. It just didn't fail so that's how it's remembered. Going from 'physics showed it could be done' to actually doing it is very hard and armies of bright people is not necessarily enough.

Re: Elon Musk's finances

#89

Earlier quoted context omitted.

> Musk is basically undertaking a moon shot: either a huge success or crash and burn. I wish people would stop using the Apollo program as an example of an expensive gamble. There was no market uncertainty. The problem was complex but the physics showed it could be done. The overall plan was tested in multiple stages (which is why the first landing was by Apollo 11 ) undertaken with massive armies of bright folk over…

There are plenty of ways the moonshot could have failed. It just didn't fail so that's how it's remembered. Going from 'physics showed it could be done' to actually doing it is very hard and armies of bright people is not necessarily enough.

> There are plenty of ways the moonshot could have failed.

Yes, and they were explored extremely thoroughly by Apollo missions 1 through 10.

Re: Elon Musk's finances

#90

Earlier quoted context omitted.

There are plenty of ways the moonshot could have failed. It just didn't fail so that's how it's remembered. Going from 'physics showed it could be done' to actually doing it is very hard and armies of bright people is not necessarily enough.

> There are plenty of ways the moonshot could have failed. Yes, and they were explored extremely thoroughly by Apollo missions 1 through 10.

Even well tested rockets still explode sometimes. Rockets are risky, complex, explosive machines. Ask an insurance company about it.
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