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Musk to review all of Tesla's expenses in new cost cutting plan

reuters.com

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Re: Musk to review all of Tesla's expenses in new cost cutting plan

#81

Post by twblalock »

aortega wrote: post #72

Traditional car companies must be damn scared to have to publish this FUD. Tesla cannot be possibly dying out. Don't you see Tesla cars everywhere in the US? yes they are spending money, buying things to grow as they are so incredibly successful they cannot satisfy demand. Dying out? you make me laugh. If you spend 10M dollars buying equipment that in a year is worth 100M dollars, you are not dying out.

> Don't you see Tesla cars everywhere in the US?

I see them everywhere in Silicon Valley. When I go to other parts of the US I rarely see them.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#82

Post by ajross »

Aeolun wrote: post #78
ajross wrote: post #49

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…

I think it’s more that I think there’s something fundamentally wrong about a company existing for 7+ years, spending billions and having yet to turn a profit. It doesn’t really matter whether it is Tesla or Uber.

Didn't bother you when it was Amazon or Google, though.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#83

Post by [deleted] »

Aeolun wrote: post #78
ajross wrote: post #49

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…

I think it’s more that I think there’s something fundamentally wrong about a company existing for 7+ years, spending billions and having yet to turn a profit. It doesn’t really matter whether it is Tesla or Uber.

[deleted]

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#84

Post by trimbo »

rayiner wrote: post #57
asaph wrote: post #40

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…

> Governments are pushing electric vehicles through subsidies and mandates

Specifically, isn't this because of CAFE[1]? Gas mileage compliance is calculated per manufacturer. So BMW can keep selling 17mpg M3s as long as they're selling enough of those i3s[2]

[1] - https://en.wikipedia.org/wiki/Corporate_average_fuel_econom

[2] - Which sell for $50K but are like $15K used!

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#85

Post by sneak »

Reason077 wrote: post #79
jancsika wrote: post #43

Suppose you buy a Tesla and in 10 months they fold. Who then maintains the proprietary software that keeps the vehicle running?

"Who then maintains the proprietary software that keeps the vehicle running?" There are a number of Tesla vehicles out in the wild that for various reasons no longer connect to Tesla and do not receive over-the-air software updates. Some of them are running software versions that are now several years old. Sure, they don't get the latest software features or UI design, but as a car they still work just fine.

So, pretty much like every other car in the universe that never gets a single update for its decade+ lifespan after it leaves the factory.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#86

Post by soup10 »

asaph wrote: post #40
charlesdm wrote: post #24

Earlier quoted context omitted.

> With relatively low gas prices at the moment, decreasing federal subsidies for electric cars, and more players entering the market, it seems like Tesla is in a pretty tough spot. Nothing you couldn't see coming 5 years ago, however.

To be fair, the current competition is largely a reaction to Tesla's accomplishments.

The domestic oil boom and the fact that we are now a net exporter of oil makes the transition to electric cars less urgent.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#87

Post by mprev »

aortega wrote: post #72

Traditional car companies must be damn scared to have to publish this FUD. Tesla cannot be possibly dying out. Don't you see Tesla cars everywhere in the US? yes they are spending money, buying things to grow as they are so incredibly successful they cannot satisfy demand. Dying out? you make me laugh. If you spend 10M dollars buying equipment that in a year is worth 100M dollars, you are not dying out.

If you spend $10 million making things that you sell for $9 million dollars then it doesn’t matter how wildly popular your product is, unless you have another source of income to cover that $1 million then you will be out of business when your reserves are depleted.

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#88

Post by Shivetya »

melling wrote: post #77
charlesdm wrote: post #24

Earlier quoted context omitted.

> With relatively low gas prices at the moment, decreasing federal subsidies for electric cars, and more players entering the market, it seems like Tesla is in a pretty tough spot. Nothing you couldn't see coming 5 years ago, however.

6 months ago Musk said they would profitable going forward. The trade war might be part of the problem. They need to get the Shanghai factory online. https://www.digitaltrends.com/cars/tesla-hurt-by-trade-war/

If they would focus on building cars they might have been there but they are betting the farm on FSD and its that short term push that might end up hurting the most.

Plus as an owner, their priorities are just whack. Next update we get a Sentry icon on the main display and, wait for it, animation of rain on the car if its raining. I guess that is better than video games.

A Toyota Camry, scratch that, Corolla, can respond to more voice commands than my TM3 and best yet, you can select through blue tooth or USB the music play list you want to play, and more, all without having to use your phone which is illegal in most states.

So love the car but I have my doubts about Tesla's ability to focus on what is required instead of pissing away resources on Easter Eggs like fart noises; I wish I were kidding

Re: Musk to review all of Tesla's expenses in new cost cutting plan

#90

Post by omarforgotpwd »

This is not true. What he says in the memo is "it would take us 10 months to burn through the $2.3 billion we just raised at our Q1 burn rate"

They've guided for a "significantly smaller" loss in Q2, and positive cash flow in Q3 and Q4.

With $2.4 billion raised, $2.2 billion in the bank, and $2 billion worth of payments coming from Fiat Chrysler cash is not as much of a concern as the headline would suggest.

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