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Suppose you buy a Tesla and in 10 months they fold. Who then maintains the proprietary software that keeps the vehicle running?
I mean, if the value of the underlying asset is suddenly reduced, you'd expect delinquencies to rise markedly.
https://www.reddit.com/r/teslamotors/comments/bq50s8/elons_a...
> A lot of FUD from the media said Elon stated they will only have 10 months left before cash balance is zero. No where in this letter stated such a thing and Elon just used an arbitrary number(in this case the newly raised capital) to express the point that 2.4 billion may seem like a lot of money, but we shouldn't take it for granted. In fact their cash balance is most likely over 4 billion.
> This letter to me shows the maturity of a company. Elon is telling his team that just because I can raise 2.4 billion whenever I want doesn't mean money is falling from the sky. Everyone must continue to be vigilant about cost cutting, and we must prove to our investors that we will take cost cutting seriously.
> From Q1 conference call, Elon alluded that the reason why he is against raising capital all the time is because he wants to focus on cost cutting as the primary objective. So his letter does not seem anything out of the ordinary. > So no, the sky is not falling.
> https://www.reddit.com/r/teslamotors/comments/bq50s8/elons_a...
So it sounds to me that Elon musk does not want Tesla to burn money like Uber. He says they most certainly could, but he would rather focus on cost cutting. This seems to be a very mature reaction, something every mature company does. This makes Tesla less and less like a startup and more like a mature company. Granted, they are not there yet but I believe they could be there very soon.
Elon Musk also always makes things “hardcore”, or more extreme then a normal company would do. Instead of cost cutting over years, he wants it done fast but might underestimate the time it actually takes to achieve his goal. We have seen that move from him many times, when a released the model 3, he gave a very very optimistic release timeline. While he missed it, it was still a lot faster then his original plan to release it in 2020 and still faster then a lot people estimated. While this doesn’t always work out (like his autopilot goals), by setting such hard goals and deadlines, things move much faster then they normally would. Only time can tell if his cost cutting plan actually works but he has shown that such extreme actions can often lead to much better results because everyone wakes up and doesn’t just put it on goals for the next 3 to 5 years list.
That being said, I am not really worried about Tesla. They have shown that they are able to get a lot more money if necessary and their demand is still going strong. The competition doesn’t look very promising (the audi E-Tron is often compared to the 2013 model S, and while it is most certainly superior in some aspects, I believe Tesla is still a few years ahead from the competition).
Suppose you buy a Tesla and in 10 months they fold. Who then maintains the proprietary software that keeps the vehicle running?
If someone does it I would imagine they would charge for it. Considering Tesla is considered a luxury brand there would probably be a decent business there.
Am I right to assume that if Tesla files for bankruptcy protection, all car deposits basically vanish? I assume there's miles of higher priority creditors lined up than consumers who paid a deposit. Do we have any sense of how many outstanding deposits there are still?
No. Bankruptcy isn't debt forgiveness. Buyers and the lawyers representing the class action suit would have a seat at the hearing and would be able to get in line for whatever is left. That said: come on, people, Tesla isn't filing for bankruptcy. There are hundreds to thousands of perfectly normal financing options available to run a company with revenues like this that will stretch a cash shortfall into a decades-l…
Few thoughts 1. Is anyone still buying car? May be it's a huge necessessity in US but most of the cities are fairly packed and have good public transport and improving 2. Idea of self driving car will indeed be a big selling point. Still people will pool those and cost of transport in general will come down because of Uber's fleet. Self ownership will still not go up significantly unless idea is to buy for long dista…
Yes and people still watch TVs even if you haven’t owned one in 15 years....
But just a little googling. 80 million worldwide.
https://www.statista.com/statistics/199974/us-car-sales-sinc...
Edit: Why did people downvote this question lol
Few thoughts 1. Is anyone still buying car? May be it's a huge necessessity in US but most of the cities are fairly packed and have good public transport and improving 2. Idea of self driving car will indeed be a big selling point. Still people will pool those and cost of transport in general will come down because of Uber's fleet. Self ownership will still not go up significantly unless idea is to buy for long dista…
1. Yes, many millions of people are still buying cars. Some of us love cars. Real men drive, and drive well – they don't ride bikes or trolleys to work. Driving is an essential element of grown-up level autonomy and freedom of movement. 2. Most people won't share their cars like Musk's car sharing scheme envisions. Why would you want strangers driving your car at all hours, and putting miles and wear and tear on it?…
Suppose you buy a Tesla and in 10 months they fold. Who then maintains the proprietary software that keeps the vehicle running?
Are there historical examples of this happening in other companies? It's scary to think the answer to ops question is not immediately obvious.
Earlier quoted context omitted.
To be fair, the current competition is largely a reaction to Tesla's accomplishments.
I question that CW. If that were true, the competitors would be making sporty sedans like Tesla. But almost none are. The competitors—the Bolt, Kona, etc., are all totally different form factors. The alternative, potentially better, theory is that everyone is reacting to the same incentives and market structures. Governments are pushing electric vehicles through subsidies and mandates. Meanwhile, exploding use of por…
Tesla is maintaining a brand halo by keeping a reasonable minimum range, but the base Model 3 is relatively inexpensive compared to many competitors.
Earlier quoted context omitted.
No. Bankruptcy isn't debt forgiveness. Buyers and the lawyers representing the class action suit would have a seat at the hearing and would be able to get in line for whatever is left. That said: come on, people, Tesla isn't filing for bankruptcy. There are hundreds to thousands of perfectly normal financing options available to run a company with revenues like this that will stretch a cash shortfall into a decades-l…
what happened to the delorean motor company?