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

reuters.com

91–100 of 248 posts

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

#91

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.

This sort of happened to Saab, but since they were basically badge-engineered GM cars at that time it is still easy to get parts.

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

#92
The headline is misleading. Elon was just stating that the cash burn rate of the first quarter would eat up the newly invested capital in 10 months. He did nowhere say, that he expects the cash burn rate to stay constant, even without the savings he plans to implement. Q1 was a quarter with low deliveries - while more M3 were made than in Q4, less of them reached their buyers before the quarter end and thus a lot of them couldn't be accounted as a sale yet. All indications are, that in Q2 the total amount of delivered/sold cars will be quite a bit higher than in Q1, which also would improve the finances accordingly. Probably not enough to break even, hence the saving money initiative.

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

#93

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

This is a good question whether Tesla survives or not. If you buy a car that is heavily dependent on software, even if the brand does not go out of business, who will support it in 10 or 20 years? Most automakers do not support their vintage cars or make new parts for them.

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

#94
post #40

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.

This is my foundational fear of losing Tesla. Love them or hate them if they were to sink I feel the large drive to compete with them goes away and we go back to business as usual burning dead dinosaurs. While Tesla isn't perfect by any stretch I do think they continue to be very important to the overall market progression and higher expectations of auto manufacturers.

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

#95
post #71

Earlier quoted context omitted.

Who is the enemy in this situation? I don't see how this applies to publicly traded companies.

So much this... There are texts written with military contexts in mind from which you can extrapolate non militaristic lessons (The Book of Five Rings, for instance). The Art of War is not one of them. It's not surprising to see it quoted a lot though. I'll leave with a quote from Naggum; whether one thinks it's fair to Gates matters less in this context than if there's agreement that the outlined problem exists: "th…

Sure, it isn't exactly the same situation as a war, where one country is fighting his neighbor country to the death. But to say that the art of war has no lessons to teach those of us who are not literally in a war is ignorant.

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

#96
post #87
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.

Are you downvoting math?

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

#97

Earlier quoted context omitted.

Irrespective of the technical merits, a significant portion of the HN user base likely invested in $TSLA years ago and are financially incentivized to support all of Musk's claims, even if they wouldn't support the outlandish claims normally.

There is no evidence at all for the assertion that "a significant portion of the HN user" base is invested in anything.

Considering that a large portion of HN readers are technical and data driven, I would think/hope that they are not invested in individual stocks with any significant amount of their net worth and are instead taking the approach that the data bears out which is to invest in low fee index funds.

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

#99
post #64

Earlier quoted context omitted.

what happened to the delorean motor company?

Criminal prosecution of the owner because he decided that running cocaine was the best way to finance his company.

He was set up. He successfully argued entrapment, and was acquitted:

https://en.wikipedia.org/wiki/John_DeLorean

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

#100
post #82
post #78

Earlier quoted context omitted.

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.

Neither of those companies lost billions before reaching break-even or profitability.
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