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Tesla Burns Through Record Cash to Bring the Model 3 to Market

bloomberg.com

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Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#181

Post by MaysonL »

simonsarris wrote: post #39
abritinthebay wrote: post #32

Earlier quoted context omitted.

Your point about companies with large cash hoards is true but breaks down at the sheer scale of Apple & it’s cash reserve. Apple is routinely making several billion dollar bets. They invest Amazon & Tesla debts regularly but it just doesn’t make a dent . At some point a cash pile is so large it’s basically impossible to spend responsibly. Even with big bets. They have so much cash they could buy Disney outright if th…

> They have so much cash they could buy Disney outright if they wanted to. Think about that for a second... Yeah and they don't. Why don't they buy Tesla? Why don't they buy Disney? Why don't they attempt to reinvent home construction which is a stagnant for the most part? Why aren't they the next Bell labs? Why not reinvent major home appliances most of which are a huge drag and a dumpster fire of usability? "This c…

I wonder how much (if any) of their cash is invested in Tesla convertible debt? Apple has been bumping up their R&D spend (not even including their acquisitions) by 20% or more annually for quite a few years: it's now up to around 5% of revenue (hard to calculate exactly, given the seasonality of their revenue). So far they've created at least 4 absolute breakthrough products, 4 more than most Fortune 500 companies ever achieve, including the most successful product ever (1.2 billion sold).

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#182

Post by mikeash »

dkrich wrote: post #179
mikeash wrote: post #153

Earlier quoted context omitted.

Why do you keep comparing to middling dumbphones? Compare the iPhone to contemporary high-end smartphones and you'll see that the iPhone was behind on pretty much every metric. The big exceptions were: 1. UI. 2. Web browser. 3. AT&T unlimited data plan. It turned out that those three metrics were really important , and that being ahead on a few really important metrics is better than being ahead on a bunch of less im…

Because the middling dumbphones are what comprised the majority of the market, the market that Apple completely took over. How many people were using smart phones as a % of overall market in 2007? The only real players that I can remember were Palm and Blackberry, and both those were terribly executed in comparison to the iPhone. And yeah, more than 10% of reservations were cancelled but that couldn't possibly be bec…

If you intended to say that the iPhone was far superior to the typical dumbphone of the day, then I can accept that. I was responding to what you wrote, though.

If 65,000 cancelled reservations translates to "a lot of people don't want to spend $35k on this car," then the nearly half a million remaining reservations must translate to "a shitload of people want to spend $35k on this car." No?

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#183

Post by romanovcode »

aiyodev wrote: post #57

Elon Musk's empire is a house of cards built on self promotion and empty promises. It's only a matter of time before the whole thing comes crashing down.

I'm not sure what empty promises you are talking about. Tesla cars are pretty good and run great. Of course you cannot go country-wide trip with them but IMO that's not what they are made for in the first place.

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#184

Post by sireat »

awkwarddaturtle wrote: post #79

Jesus. Look at the top comment and the replies in this thread. I find it hard to believe it is real HN commenters and not a TSLA PR campaign here. "What are the accumulated losses so far? $5-10B? Even if Tesla were to spend another $50B and go bankrupt, I would still maintain it's great." Seriously? This is being voted up? Also, the top commenter here "simonsarris" is a top commenter in the other TSLA thread. https:/…

Without resorting to hyperbole a reasonable case can be made that Tesla losing $5B is more utilitarian than SNAP,GRPN,ZNGA losing $5B.

It is all about how society allocates its capital/claim checks(to use Buffett's term).

Case is simple: we need to move away from fossil fuel economy at some point before it is too late.

We can argue whether TSLA approach is wrong and whether we have plenty of time to adapt.

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#185

Post by valueprop »

j7ake wrote: post #80
flexie wrote: post #61

Earlier quoted context omitted.

Whether Tesla survives or not, these billions are some of the best spent money on the planet in the last 50 years. What are the accumulated losses so far? $5-10B? Even if Tesla were to spend another $50B and go bankrupt, I would still maintain it's great. What Tesla has achieved is so important in the long run for the environment, for ending the strategic dependence on oil dictatorships, and for renewing the belief i…

So what has been the net reduction of CO2 usage because of tesla to date?

With more EVs, we won't breathe so much car exhaust in cities. This is important.

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#186

Post by espadrine »

j7ake wrote: post #80
flexie wrote: post #61

Earlier quoted context omitted.

Whether Tesla survives or not, these billions are some of the best spent money on the planet in the last 50 years. What are the accumulated losses so far? $5-10B? Even if Tesla were to spend another $50B and go bankrupt, I would still maintain it's great. What Tesla has achieved is so important in the long run for the environment, for ending the strategic dependence on oil dictatorships, and for renewing the belief i…

So what has been the net reduction of CO2 usage because of tesla to date?

> what has been the net reduction of CO2 usage

I think it is too late and too optimistic to hope for CO2 reduction.

The world only aims for a moderate decrease in CO2 rate of increase.

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#187

Post by dlandis »

awkwarddaturtle wrote: post #79

Jesus. Look at the top comment and the replies in this thread. I find it hard to believe it is real HN commenters and not a TSLA PR campaign here. "What are the accumulated losses so far? $5-10B? Even if Tesla were to spend another $50B and go bankrupt, I would still maintain it's great." Seriously? This is being voted up? Also, the top commenter here "simonsarris" is a top commenter in the other TSLA thread. https:/…

And yet those comments are making more substantive points than yours. You are just expressing disbelief.

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#188

Post by Florin_Andrei »

flexie wrote: post #61
simonsarris wrote: post #7

> “He’s going to need capital,” said Ross Gerber, chief executive officer of Gerber Kawasaki Wealth & Investment Management, which holds Tesla shares. “That’s the one part of the financials that are a little bit troubling. To underestimate the cash burn over the next six months will be a mistake.” It's not that troubling. Even massive companies (AMZN in 2014) need to raise big capital. When you have something you wan…

Whether Tesla survives or not, these billions are some of the best spent money on the planet in the last 50 years. What are the accumulated losses so far? $5-10B? Even if Tesla were to spend another $50B and go bankrupt, I would still maintain it's great. What Tesla has achieved is so important in the long run for the environment, for ending the strategic dependence on oil dictatorships, and for renewing the belief i…

> There is no way back now. Tesla has already won.

Elon has already won. His goal was to get the whole EV thing really going. Looks like the snowball is already rolling downhill now.

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#189

Post by mhermher »

tpolischuk wrote: post #90
awkwarddaturtle wrote: post #87

Earlier quoted context omitted.

> I'm not sure why you're so upset. I'm not. But it's interesting how I just got swarmed by 3 commenters. > The comment you are quoting is a snippet out of context. The context makes it even worse. "None of us can unlearn what Tesla has taught us. There is no way back now. Tesla has already won.'" I can't believe you think that the "context" makes it any less cultish. The comment is almost messianic.

Is he wrong? Did Tesla not prove to the rest of the auto industry that electric cars are not only viable but also profitable and inevitable? Would we have the Bolt, Spark, Fiat e500, eGolf without Tesla?

The Bolt, etc. exist because of federal subsidies mostly, not because of some billion-dollar-losing company showing that the idea is viable.

Re: Tesla Burns Through Record Cash to Bring the Model 3 to Market

#190

Post by mhermher »

tpolischuk wrote: post #103
blang wrote: post #94

Earlier quoted context omitted.

Isn't the parent's point that they are not profitable?

Sure, maybe for Tesla, (and other similar growth at all cost technology companies) it it's not immediately profitable. Let's check back in 10 years and see if this makes Tesla and their investors any money.

That doesn't jive with your original argument. So GM made the Bolt because Tesla proved (??) that they "would be profitable in 10 years"? That is what your argument amounts to.
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