Most mainstream media is lukewarm or hostile to Tesla. It is a fact that Tesla don’t buy advertising - which, I believe, might well be the reason that the media don’t like Tesla too much. Not only is Musk and Tesla making things difficult for big oil and legacy automakers, now it is making trouble for the media (which depends on advertising revenue to survive). When Musk shot his Roadster into space - the whole advertising industry had a panic attack! Unfortunately I will probably never have the privilege to own or drive a Tesla, but I love how Musk shakes things up! Also what needs to be mentioned is the fact that Tesla is an amazingly SAFE car!
11
Legacy automakers are afraid of Tesla, because once you drive a Tesla, you WON'T go back to gas cars. This is true for any electric car, but particularly Tesla and its services.
22
More fear uncertainty and doubt from NYT which, so concerned about the climate crisis, serves up the most negative slant from fossil fuel world to stop a company that has made zero emission cars a reality. What's that about, oil money? Tesla has beaten the odds since the beginning. Why not an article about Tesla owners' real experience ? A small US car manufacturer expanding sales all over the world is the story. To get accurate information about alternative fuel vehicles NYT is not the place to find it. Try Cleantechnica and others. I own a Tesla and find the car and the company far superior to its rivals.
19
I admire Elon - and think a world of him - for space and rocketry stuff - not to mention a Tesla circling the sun and arrival back to earth of Mr. Ripley.
And of course, recoverable first stages of his rockets.
All out of this world.
But in Tesla - Elon cannot defy gravity, after all.
I am beginning to think Tesla stories like this are sounding more and more like that Russian Soyuz station.
Everyday, something bad would happen. A mete or out of control docking ship or even a fire. Who can forget unflappable American, Dr. Foley aboard this ship??
And every day, it was reported that it could spin out of control and crash and burn.
Well, it eventually did as expected - but failed to hit that Pizza Hut or Dominos sign spread across the Pacific.
Something similar here.
Everyone kind of knows Tesla will crash - no one has as of yet - hung a sign post to hit.
Otherwise, it's all Soyuz, deja vue all over again.
1
The reduction in the Federal subsidy is a big deal. Elon's Tesla is a detail in the larger story. We need to vote out Republican ostriches in 2020. We need bold, forceful, imaginative leadership from the Democrats, not constantly taking into account what their political enemies might think. What needs to be done? Warren for President. Inslee for President. Vote out McConnell in Kty.
7
"Tesla’s Model 3 electric sedan was heralded this year by Consumer Reports as the most satisfying car on the market."
I cannot find such a statement in the 2019 annual automobile issue (April) of Consumer Reports.
What I can find is an overall rating of 65.
The two other Tesla models:
the flagship Model X is rated at 55, the Model S is at 78 (CR rates 35 other car models higher than 78).
1
I have been a Tesla owner since 2013, and fairly recently traded up for a new car. Despite all of the negativity in the media, Elon Musk has done an amazing thing: created a new American car company from the ground up that has dramatically changed the industry. I have not bought gas in 6 years, something unfathomable a decade ago. Sure there are some bumps but what startup company doesn’t? My Teslas have been far more enjoyable and much less trouble than the Mercedes S Class or BMW 750 I previously had.
16
For all you Tesla haters who constantly insult Musk as a scam artist, how do explain Space X, a tremendous success?
2
@Desertstraw
That's an excellent point, and I'm sure all the Tesla owners who can't use their cars while waiting for parts or repairs feel much better about their purchases as a result.
3
There are a limited number of people who want to own Teslas. Once they have bought them then sales drop. It happened with the S and X and once it happens with the 3 sales of those will plummet. That is the pattern. A lot of sales when a model comes out and then a precipitous decline. It is why we see Tesla sales exceed traditional cars. The majority of high end car buyers have no interest in Teslas. Meanwhile no matter what Musk says there is no way any cars will be self driving within the year. Not only isn't the technology be ready but the legal framework just doesn't exist. Not all accidents are avoidable. When one is involved in an accident who gets sued- the owner or Tesla? I wouldn't be surprised if in a few years Tesla cars will be off the market and if Tesla still exists as a company it will only be selling batteries and technology.
This article is guilty of the same misinterpretations that many other investors and authors in the media make. For example, an internal email about controlling expenses could be interpreted as either a good or a bad sign, but it is not necessarily a sign of Tesla's struggles. Secondly, Jonas from Morgan Stanley recently turned around and had much more bullish comments about demand for May.
I don't think there is any ill will here. I just think that, like most of the people writing articles about Tesla, there is a strong negative narrative against the company in general that is biasing the interpretations of many of their actions. Admittedly, the company has struggled at times, as 1Q results and the stock movement suggests. But the story on demand is not as negative as many suggest.
4
as an owner of a Tesla 3 I find it strange that a car with such great reviews and made in America is not a full blown hit. I get compliments on the car wherever I go and everyone I've had sit in the car with me is fascinated. It is a pricey car but anyone looking in the ev market will find this to be a bargain still among comparables...
8
Reading all these laudatory comments, I took a look at the Tesla website. Models S & X start at $80k! All I see for Model 3 is $50k plus. Sure it might be a wonderful car, but that is a lot of money for a car. What kind of math are these folks doing? Hard to see how it really pencils out. Here in San Diego we pay 30 cents per kilowatt hour for electricity. A quick look at some Tesla charging costs suggests their fuel per mile is maybe 25-30% cheaper than a hybrid gas car at 30c per kwh and $4 per gallon. Not much of a deal really. If we got everybody out of their giant pickups and SUVs, demand for gas would drop to where gas might even be cheaper than a Tesla per mile.
1
@Ed
Gas prices could also go up as there are wars in Iran, Venezuela, and instability in the other regions such as Saudi, UAE, Russia, etc...
The proof of the pudding is in the eating. I recommend all skeptics to test drive the Tesla and see for themselves what the car is really like. There were a lot of people complaining about the Apple PCs being too expensive and how a PC was cheaper. But the Apple PCs have endured to become the industry standard in many industries while PCs have become loss-leading commodities - remember the powerhouses Dell, Compaq, etc... used to be?
There is too much envy and fear of change in the approach to Tesla. People who are terrified of change will come up with every possible rationalization, and that is what everyone is doing re Tesla. Has anyone had the integrity to compare a Tesla's fit and finish and accident record with ANOTHER car, of ANY make, and then see how the numbers pan out? Proof of the pudding, and all that ...
8
@Ed
You do realise that the best selling car in the US is the Ford F150? And that its average price is over $50k and it gets less than 20 miles per gallon. And a cursory glance at Tesla's site shows the Standard Plus Model 3 at $40k
2
I'm on year 6 of driving an EV and I won't go back. My current range is 125 miles which is adequate for where I live. My only decision will be whether to get the Tesla 3, which costs less than many of the EVs on the market, for my disabled husband to drive or hold out for the VW ID Buzz. What a lot of folks fail to realize is there's no maintenance outside of tire rotation and software updates for these vehicles. I'm cheering for team Tesla and the other car makers that are embracing the future.
17
@LK
Don’t “hold out” - get that Tesla (red with white interior) both of you will enjoy this car so much!
1
I have an early 2016 Tesla Model S. That makes me a kind of investor in the company.
The car has been reliable and works well. But they’re trying to do a lot: eliminate car dealerships, deploy an entirely new energy network competing with fuel stations, develop self-driving technology, cater to the expectations of traditional luxury-car buyers, Build vehicles that need W-rated (162mph) tires to be safe, commercialize car software updates, and on and on.
They’re succeeding. But these things are hard to do. Dealers have repair shops and the incentive to make them work. Tesla doesn’t, and now it takes a couple of months to get a shop appointment.
And they’re suffering very large executive turnover. That is BAD for a company at their stage.
As a Tesla fanboy I have a piece of advice for Mr. Musk: the only way you can do enough is by doing nothing! Trust your people, and let them succeed.
And, quit with the Twitter stuff already.
13
Strange how they don't qualify any seemingly negative number. I-Pace has languished, as has the Bolt, no competing Mercedes, BMW 3 series sales have collapsed.
Fatalities are measured by deaths per 100 million miles. How does it actually compare?
1
I purchased a model 3 on 22-December-2018 after owning a Ford Focus Electric for 4.5 years and driving 100,000 miles. Problem with the Ford was its range was only 65 miles vs the 260 on the Model 3. The car was delivered without defects and after 12,000 miles looks and drives new. Acceleration is off the charts! FUN! As a San Jose CA 84 mile daily commuter, the $22 I paid for HOV sticker plus the $46,000 paid for the car does make the net HOV sticker cost quite high, I still feel it is well worth it as I enjoy driving the car each day. Bill
8
“In the first quarter of the year, Tesla drivers using Autopilot had one accident for every 2.87 million miles driven, the company said, while data from federal safety regulators shows that the national average for all vehicles is one every 436,000 miles.”
False stat. First, Tesla’s are basically all new. The average vehicle includes the 15 year old car that has no modern safety features. Of course the Tesla will do better.
Second, Autopilot is used mostly on highways where there are normally fewer accidents per mile. The 436,000 mile figure for other cars applies to both highways and local roads.
Autopilot is horrible and has killed people already.
2
@Jay Lincoln
There are numbers for competing cars, just as there are Tesla model 3's. You made the claim back it up with data.
1
@Jay Lincoln Perhaps a fairer comparison would be Teslas driven with Autopilot turned on versus Teslas driven without Autopilot, and limit the sample to highway driving only.
Having driven a Tesla Model S with Autopilot regularly for three years, I can attest that it is safer than driving the same vehicle without Autopilot. Most of that added safety comes from Autopilot's traffic aware cruise control (TACC), a feature that some other luxury brands also offer.
Autosteer is a separate Autopilot function that takes Autopilot a step further. In its current form, Autopilot requires the driver to keep their hands on the steering wheel at all times and to be ready to take over at a moments notice. If the driver lets go of the wheel for more than a brief period, the car will begin alerting the driver and will disengage Autopilot if no action is taken.
There have been a few fatalities in Teslas while using Autopilot, and in every instance the driver was not holding the steering wheel or paying attention just prior to the accident. Autopilot is not an autonomous driving system, but some drivers have tried to use it as such. When properly used, Autopilot does improve safety.
3
VW- who owns Audi and Porsche as well- is coming to the electric space and is bringing a big checkbook. VW is spending just shy of $50 Billion ovr the next years and will be bringing a whole line of EVs to market with a large established dealer network and some of the new cars and SUVs will be made here in the United States.
Tesla has spent the first mover advantage- this is not a single model like the Chevy Bolt- this is a full line of EVs that will be ready for prime time.
VW got religion after Dieselgate and the first fruits of that project will be coming much sooner than the promises of Elon Musk. Tesla is about to become roadkill.
2
Vw is a criminal company. I would never buy their products
10
@David GregoryI
I used to have a VW Passat. Great car. Terrible company. Anybody who has dealt with VW will tell you that they don't honor their warranties. Add dieselgate and you will understand why people don't buy them any more. The Times keeps on touting Tesla killers but none of them seem to have taken off. I remember the article by the Times' computer specialist on how the Bolt was going to kill Tesla. Have you looked at Bolt sales lately?
The times hates Tesla. It's getting a bit played though. Every 3 months an article about the problems of manufacturing 60,000 state of the art vehicles. No persoective on the defects produced by the auto industry at all. No discussions of the competitors at all - never. While The Times investigative journalism is setting new standards, the rest of the crew is stuck in their own propaganda machine. Or maybe they just don't think we are keeping close enough tabs on Musk and that we are all rooting for his downfall. Maybe their investigative team could look into how much we subsidize oil and gas exploration for major oil companies and speculators and compare that to how much we are subsidizing electric vehicles. Maybe they could address the issues of weather or not we should be supporting a modern car maker in the US and the coming green wave in Europe and how that could boost US exports and lift Tesla shares, if Musk makes it of course. Are these authors too dumb to know there is more at stake here than Tesla?
37
@Expat This is all about market manipulation.
7
Tesla is basically a scam and Musk is an unpleasant jerk who cannot take criticism. I had a long conversation with someone I've known forever who told me that several people she knows (she lives in a wealthy suburb of DC) have had horrible experiences with their Teslas, so bad they would never buy one again.
One had their Model X damaged in an accident and removing the gull wing doors requires a special tool they only have at the factory. So the car was totaled. To say that is bonkers is an understatement. The other person had the car in the shop so often they never got to drive it. It was garbage from Day 1.
Musk just keeps announcing something new to distract people from the problems of his last big idea. Hyperloop is silly, his tunneling company is ridiculously dumb and now he thinks he can make a million self driving taxis. Sure, Elon, sure. And I have a bridge in Brooklyn you can have for cheap.
2
@Mike Friedman Scam companies don't build factories like this:
https://www.teslarati.com/tesla-gigafactory-begins-initial-tooling-in-china/
3
@Brad I think that scam companies build up massive expenditure projects all the time if they have the capital available to do it. Pointing to Tesla's Shanghai Factory as evidence everything at Tesla is fine seems to be equivalent to claiming Enron was doing well because they had enough capital to employ 29,000 people before they were caught committing massive corporate fraud. Needless to say, I don't think that argument is especially convincing.
1
@Brad
I think your analogy is weak. Tesla is building the factory to lower costs and meet demand, not to commit fraud.
4
I love Elon. I think 100 years from now he will be viewed as the Edison of the 21st century. He is running into the future at 1000 miles an hour and trying to drag us all with him. Electric cars, solar panels, hyperloop, Space-X, amazing stuff. I wish him the very best.
But that said, I wouldn't invest a dime in his company. The risks are enormous, and I would put the chance of bankruptcy within 5 years at 70%.
1
Oh no. Someone is showing doubt of the Great One, Elon Musk. Tesla Fanboy Army--activate!
3
Can someone please comment on the viability of the solar roofing that Tesla makes?
Tesla is pretty much a scam. Musk runs a couple of Ponzi schemes and when one starts to fail, he just starts another one.
He kept his empire running with emission certificates and false promises.
I am surprise that so many NYT readers have fallen for him.
4
Scam artist? No. 0 to 60 in three second - yes!
14
@Two in Memphis If you honestly believe Musk's companies are Ponzi schemes, then you don't know what a Ponzi scheme is.
1
Jaguar is recalling its i-Pace SUV due to safety issues and problems with its regen. Audi just announced a recall of its e-Tron SUV due to a seal problem with its battery pack.
Where do I find these mentioned in the Times?
23
@Alan Dean Foster Audi and Jaguar's issues are of a much smaller and less newsworthy scale than Tesla's. The models you cite are effectively prototype engineering samples these major manufacturers are using to ride an electrification wave that is still at least a decade away, and they are being sold as such. Tesla isn't an established car company trying to enter a new segment, it's an overvalued startup with an eccentric leader and unproven business model. Audi and Jaguar's failures, while disappointing, reflect almost nothing unusual about their businesses as electric vehicles are not their main focus. Tesla's widespread manufacturing missteps and errors threaten the entire company's future, which is probably something Times readers and investors care very deeply about. I don't blame the Times for focusing on Tesla more than on mundane recalls of niche models of fringe segments of traditional auto manufacturers.
@Brad
"...electric vehicles are not their main focus." Which is why Tesla continues to move the goalposts on them.
3
Another installment in the Times' continuing series: Tesla - fear uncertainty and doubt. Tesla continues to build and sell cars at a high rate, outpacing all other manufacturers with its high quality BEVs. And this despite an extremely weak market for passenger cars. The Times would do better by sticking to the facts, rather than trying to prop up mainstream US automakers and the oil cartel. One point that the article does not make. Tesla's so called losses are mostly on paper caused by the company writing off large amounts of depreciation. And as to stock valuations, there's a lot of short selling going on, much of it prompted by the Times and other media outlets looking for the next clickbait headline.
25
This article is negatively slanted against Tesla, using old news and hearsay. Weird comments like '100,000 cars in both the third and fourth quarters — a level it has never achieved,' show a bit of bias against Tesla, it seems to me. If they did 90,000 in the last fourth quarter, it is not a big stretch to think they can make a 10% improvement a year later.
The article does not even mention that Model 3 and right hand drive models are now being sold overseas for the first time. Kind of a huge market, that they are just beginning to fill.
Hopefully, the facts will soon dispel the cloud of doubt this writer posits...
11
This car is quicker than a Corvette, more efficient than a Prius, and it refuels for pennies at home or at superchargers. There is also at least a possibility it will become a robotaxi and pay for itself in the near future.
The gasoline status quo should be very very scared. Maybe even scared enough to make you think the cars all have major defects and the company is about to implode?
Here's something you should be scared about instead.
Gas stations sell you gasoline, at a loss, so they can sell you drinks and snacks, at a profit. What do you think will happen when too few people are stopping in to buy the drinks and snacks?
12
Yes any negative press about Musk or Tesla is part of a giant conspiracy. Their business model is flawless. How dare anyone suggest otherwise!
4
@Aron
Even a Tesla needs a lot of oil to get produced. Look at all of the plastic parts, where are they coming from.
And at the end electric energy is made by coal powered power plants, that are fossil fuels as well.
And yes you need a lot of oil too to produce solar panels, wind generators or the concrete for the dams.
We are like it or not VERY depending on fossil fuels and no Tesla can change that.
@Two in Memphis Due to strict emission laws, only one coal-fired power plant still operates in California, the 63 MW Argus Cogeneration plant in San Bernardino County. California leads the nation in electricity generation from non-hydroelectric renewable energy sources, including geothermal power, wind power, and solar power.
4
Tesla's are like no other car you have ever driven. They ar truly amazing.
Nevertheless, they will not achieve sustained profitability without much more investment, but it will cost MUCH less than it will cost Toyota, GM, Daimler, and others to catch up to where Tesla was 3 years ago. A solid investment in Tesla could put them so far in front of any other automaker that their market cap will be a multiple of what it is today, and other automakers will cede much marketshare to Tesla.
I don't own Tesla shares (yet) and I'm not sure what is the right level to buy them if you want to maximize returns in the next couple of years, but the upside in the long-term is far greater than the downside.
10
If this is a story about how a car company moves from being in startup mode to a ongoing profitable enterprise, then great. But what's with all the Tesla hate? They are doing something truly incredible. Last month my wife and I drove from San Jose to LA in our Model S (2 yrs old, ~20k miles, not one problem!) Stopping at Superchargers that rely on solar is an uplifting experience. And turning on Autopilot for several hours on I-5 was fantastic. Our car purchase was done for political and social reasons. For your grandchildren's sake, you better hope that Tesla survives (and thrives).
43
@HG It isn't clear at all if Teslas will ever be bought because they are nice cars by typical car buyers. Right now most are bought by people like you who buy for political or social reasons or by people who like new technology. If you compare them to traditional luxury cars they just aren't as nice. A $50,000 BMW or Audi just looks and feels a lot nicer than a Tesla model 3. About a year ago I bought my first BMW which is a fantastic car. It is the best car I have ever owned. At about the same time a friend paid about the same for his Tesla Model 3 which he loves but neither one of us would even consider the other's car. I bought my car because I am a car person and he bought his Tesla because he is a nerd who loves new tech (his words).
@Jeff G
I have had a Mercedes S, series, a Saab turbo, various US muscle cars, a Subarua WRX and Outback turbos. I now have a Model 3 and it is the most fun to drive of all of the cars that I have driven
2
Musk seems like a innovator, a thinker not necessarily a great manufacturer. Maybe his best move would be to spin off the production of these Tesla automobiles to a larger car company and concentrate on more new ideas. That way production could continue to grow and the momentum moving us into the electric age would not be lost.
3
Exactly.
Too risky. He knows they could drag their feet just to protect their base.
1
@Carl Hultberg
I think he's learning to be a pretty darn good manufacturer. Remember that no one has built electric cars at scale before, and Tesla was essentially a startup. Now that they have a year of scale manufacturing behind them it will be more fair to judge them on their next facility: the Gigafactory 3 in Shanghai.
6
"For all its setbacks, the company has a fervently loyal customer base and offers technology no other automaker can match."
Not quite true. Saturn, a GM brand, had that kind of following, too. But after a strong start, GM stuffed the Saturn pipeline with rebranded Pontiacs (Sky), Chevys (Relay) and Opels (Astra and Aura). Once the true believers realized that their beloved was no longer "a different kind of car company," the wheels came off with lightning speed.
1
And how, exactly, did Saturn have any interesting new technology? I don’t see a lot of similarity between Tesla and Saturn. My Model 3 is my first American car, and I’m 55, because they truly do offer something different and extraordinary in terms of technology. Such a fun and amazing car, which I’m charging off my roof.
3
"On Jan. 1, the federal tax credit available to Tesla customers fell to $3,750 from $7,500. That effectively increased the cost of its cars..." This implies that the cost effectively increased by $3,750, but that was only true for 1 day. On January 2, Tesla lowered prices by $2,000. To the extent the tax credit expiration affected demand, I would think it was because many buyers bought sooner than they otherwise would (foreseeing the tax credit expiration, but not the price drop).
Second correction: the hood reflection photo caption is wrong: the reflected car is the Model Y, which is an important part of Tesla's long term strategy.
1
The title should be changed to "Here's a Collection of Bad Things about Tesla."
A longer article would be: "Here's Why the Model 3 is the World's Most Advanced Car."
What public service is NYT aiming for here? Stay away from the stock? Stop loving your Tesla, even though it has highest owner satisfaction among all brands (according to Consumer Reports, some of whose staff members then went out and bought Model 3s after extensive testing)?
The media, not just NYT but certainly NYT, seems to be dealing crack for readers who love reading bad news about Tesla. But the reality—which journalists always purport to illuminate—is that Tesla is delivering amazing cars that people around the world are lining up for and loving.
Tesla is the ONLY automaker infusing their car with software like the phone you hold in your hand. Every other car is a flip phone.
If you love your smart phone or you love Made in America or you value safety or you enjoy fast cars, you should love Tesla.
Do better, NYT.
54
@John Beans The "public service" is reporting the news.
The article also points out that the Model 3 "is the top-selling midsize luxury car..." Do you want the NYT to only report the facts you like? I am glad that they have both the good and the bad, otherwise it would be a biased article.
The NYT is not Breitbart or Fox News that only tells one side of the story, thankfully.
2
Tesla quality is poor and parts are non existent. Being forced to only use their repair shops is terrible and can cause months long waits.
The way the car was built is crazy from a repair perspective. Changing the brake lights require removing the roof panels, and they often break doing that. The wires are run under the roof. Minor accidents can cost $15k to repair as the sub body is all tied together,
2
@ChrisChristiesBelt What about other manufacturers? They are ten time worse. I have spent over 8 years more than $12K just to repair my VW vehicle. Hyundai is not better. My 6 months old car at constant repair cycle and I do not see that it will be fixed at all. And now you are telling me that Tesla is worse?! I have spoken to dozen owners and they in in love with their cars.
2
@ChrisChristiesBelt
And your proof for your assertions?
1
The end of each quarter is a scramble for Tesla like no other company.
The autonomous driving announcement seems like pure hype because Tesla is well behind the leaders such as Waymo. The miles driven using driver assist is a false comparison because that is highway miles which have much lower accident rates.
I think the biggest trouble for Tesla is that the other automakers have big profits to invest into their electric vehicles. The rest of the industry doesn't have to bet the company that this year's EV models will be a big success. They have the resources to survive poorly received models, learn their lessons and come back in a year or two with better models.
1
@Scott
On first read, I would think you may be correct, but unless the existing automakers have a reliable battery source and charging network (outside of owner's homes) I think they're in trouble.
Audi, a division of VW (as we all know) is having trouble getting the batteries for its $80K SUV. It also has a relatively meager range range just above 200 miles ( Wait, what $80K for 204 mi range?!) If the existing auto makers want to get into EVs, they need to commit as Tesla has with battery making, a charging network and serious Rand D.
VW keeps sounding like they're commited so I'm hopeful.
2
@Toren Orzeck
A big part of Tesla's problem comes from its insistence on controlling every element of the driving experience. That was necessary for awhile, but the idea that car manufacturers need to also be battery manufacturers AND develop the refueling stations is a recipe for failure. Tesla should get out of the charging business and should probably get out of batteries as well. Both of those are relatively low-value add businesses compared to the tech-driven design, update and automation features that make Tesla vehicles so beloved.
I admire Tesla's product but Musk's business model is unsustainable. When people start to realize over the next 12-24 months that they have good options with manufacturers who have much deeper production experience, superb quality control procedures, internally-funded balance sheets and can actually build and service everywhere the vehicles they sell, Tesla's challenges, which are significant now, are going to become huge.
1
@Doug Hercher
The only reason they have been able to make ~300K Model 3s in a year is because they had the foresight to build a giant battery factory. It's one of their key differentiators. Might not always be the case, but it sure as heck is right now. Same story for recharging stations. They would sell half the vehicles without them. Who would build them if not Tesla themselves? This will change in the future, but we are not there yet.
3
My husband bought a Tesla Model 3 a year ago and really likes it. Ignoring all the hype and bluster for a moment, it's simply a great car to drive. Tight handling, incredible and smooth acceleration, excellent climate control and sound system, and really good visibility. Getting new features each month over the air is totally cool. Oh, and we get 100 miles for $2.50 of electricity. Why is there so much hate for this company that's US based and employing thousands of Americans to build a very good product?
39
@Diane
Wait a while you will understand. My brother had 3 ensines his first year. He has had 5 door handles replace (600 bucks each) two screens replaced. Bolts are rusting out. The car leaks, rattles everywhere. The paint is garbage.
2
@Diane The features of your car is really not the story. Tesla has not figured out yet how to build a profitable enterprise and until they do they will always be on the death watch.
1
@Steven I'd argue the products a company produces to generate the (lacking) profits you are referring to are very much apart of the story. Having advanced products compared to the other market offerings puts a damper on the 'death watch' narrative.
I think a lot of the negative FUD pieces being released in the media, and in articles such as these, are focusing far too much on quarterly performance and are missing the YoY growth as well as future trajectory.
The Tesla story is very reminiscent of the Amazon story.. YouTube 'Jeff Bezos Explains Why Amazon Makes No Profit (2014)'. While I am not comparing Tesla to Amazon, the narrative of these two companies not producing profit, while they are expanding/ in growth mode are very similar.
8
Musk's vision for autonomous taxis is right on the mark. However, for the foreseeable future, success will require substantial cooperation from the government at all levels. For example, the reliability of the technology can be dramatically improved by the use of pre-defined pick-up and drop-off zones. And government action is beyond his control.
1
Good point, but his answers are in Europe. The UK already has sidewalk zones for pick up and drop off that are well defined on maps.
Like Solar City, Musk is wrong about "self-driving" cars. Give it up - beyond simple cruise-control-type aids, any technology which places others at mortal risk for the sake of convenience is doomed.
Until then each successive fatality, blamed by the company on inattentive drivers (what did they expect?), only diminishes its profitability, when there are so many other reasons Tesla and its founder deserve to succeed.
2
The idea is that AI is safer than human error.
1
@BobMeinetz Autonomous driving vehicles is always going be more safer then an average North American driver. I am waiting for a day when we will not have any more left line bandits.
1
@BobMeinetz "any technology which places others at mortal risk for the sake of convenience is doomed" sounds like you are talking about he advent of the automobile. a tool of convenience that transformed the world, which people used recklessly and millions of people have been killed. we are on the precipice of a new technology that will again change the way we transport people and product. sadly, americans are the most entrenched in their past and unwilling to embrace change or the possibility that their thinking may be antiquated, while they denigrate the prophets of the future. europe will embrace these technologies, and japan, and china. americans will puff and pout and dig in their heels because it is different.
The real question is who is going to buy Tesla when it comes up for sale. My bet is VAG.
@zumzar Who is going to buy Ford, GM or Chrysler? Probably no one.
1
Will the last robot please turn off the lights before shutting down
6
When software is manipulated to degrade hardware, it's Tech's way of saying "trust us". Apple, Google, Tesla etc.
Google's motto was "Do No Evil" - until it became - See no evil, speak no evil, hear no evil.
In the end, it's a still corporation that is duplicitous and looking to exploit the consumer.
100 pages of constantly changing privacy policies anyone.
1
@Mrs. Sofie Are you talking bout Boeing?
Musk has consistently over promised and under delivered, all the while burning through billions in capital. "Robotaxis"- the latest preposterous prediction from a company whose egregiously misnamed "autopilot" appears to have been a contributor to crash fatalities- are just the latest sign (solar tiles? Chicago/LA tunnels?) that TSLA's running out of distractions from the fact that making money in auto manufacturing is very difficult, and one can't sell dollar bills for $0.80 forever.
3
NYT coverage of Tesla is almost uniformly missing key points. Tesla is singlehandedly transforming the global auto market to electric drive. Will they be a victim of their own success?? We’ll see.
20
Self-driving cars. Has homo sapiens really become that lazy? Elon has watched too many science fiction movies.
@MJ2G
'Has homo sapiens really become that lazy?'
No, just they have become that irresponsible.
2
People get killed in car accidents all the time. It's about safety, not laziness.
1
I’m not sure why there’s so much angst over the most recent sales decline. Isn’t it reasonable to think that 2018 Q4 sales were bumped up with consumers buying ahead to take advantage of the final opportunity for the $7500 tax credit, and that 2019 Q1 sales were depressed correspondingly? And shouldn’t we expect the same phenomenon going forward with each new plateau, albeit to a lesser extent as the size of the tax credit cuts diminish?
As to full year projections, why is it relevant to consider past performance when Model 3 sales just began in Europe and China?
2
@Unbalanced
The concern about demand is obvious. Last year's performance wasn't just unique for the tax credit, but for more than two years of pent up preorders. Musk himself is highly concerned about costs, and not for the first time, and he himself also ordered another round of funding. For a 15 year car company that is finally mass producing cars, it's a real concern, and the declining US tax credits and deregulation isn't helping. Add in weird business model changes (eliminate showrooms, no, don't, online only, higher prices, lower prices etc) and friction with their only battery supplier, and there's a lot of concerns to take in.
Now, do China and Europe potentially help? Of course, but then enter the trade wars. China could very easily shut them down on technicalities over the trade war or even take a U-turn and decide that electrification isn't that important - like the US did. EU looks more reliable until you add in Brexit and Trump picking fights with friends repeatedly.
There's a good chance that without real climate change regulation in the US Tesla won't have enough demand to be sustainable. There's no point in kickstarting the e-car revolution if gas is so cheap that no one shows up.
3
@mjw yes, the world is an uncertain place. the advantage that tesla has is their superior product. the automobile industry, and the petro industry already know the shift is happening away from gas cars to electric cars. they are highly invested in the status quo which is not doing very well pushing the last centuries technology. the more people see and drive electric cars, the more they will want them. tesla's cars are far superior to anything else available now or in the near future. there will be better competition, and it is an uphill battle to build infrastructure and counter all the skepticism that is deeply rooted in our way of thinking, and well funded by the old guard. they tried to run steve jobs out of town too.
Selling cars to fans is by definition a niche market, not mass marketing. And it won't save the world.
5
@David
And how did Tesla get those fans in the first place? Tesla don’t advertise! Tesla owners are Tesla’s sales force.
Just like Amazon during its first 10 years, profits have been elusive and Wall Street opinion is divided at best.
But with the sheer scale of the business (200,000 cars a year is a lot), the longer Tesla hangs around, the greater the likelihood they will find profits in places no one expected.
For Amazon it was data services and advertising. For Tesla maybe it will transportation services and technology licensing. Maybe electric car manufacturing is just a break-even venture that powers other businesses -- like Amazon's break-even fulfillment operation.
6
@Tom B.
'But with the sheer scale of the business (200,000 cars a year is a lot), ...'
Nissan, 10.76 Million; Ford 2.4; GM 2.95; Mercedes 2.3.
No sir, 200k is not 'a lot'. It is if you compare them to Lotus or another tini niche car maker. But not so when compared with real car companies.
Factor in how much cash they got from Obama (4.9 Billion in 2015 alone) and you can tell these guys sold
200k cars at a cost of a good million+ per car.
2
@Tom B.
It is more likely to find massive lawsuits when its primitive "full self driving" kills a few dozen families.
@Tom B.
I'm with you, They are just at beginning and they don't have the numbers of models nor the infrastructure to build in the scale the naysayers compare Tesla to .., yet.
Tesla is currently competing with Audi, BMW, and Mercedes.
Selling 200K Model 3s means something and I'm pretty sure they outsold the BMW 3 series , Audi A4 and Mecedes C class in Q1 at least in the USA.
I think the biggest threat to the electric car is the current administration's denial of climate change.
If our government cared about the planet and its inhabitants, all the car companies would fully commit to EVs and then, for sure, Tesla may be in trouble as there's no way they have the buying power of a Toyota, VW or Ford, GM or even a BMW.
2
There was a Tesla earnings call I listened to in 2016, where the stock had crashed to $150 per share (from a recent high of 280), and revenue was barely $4 billion for the previous year. The Model 3 was still just drawings on a piece of paper. The Model X was causing commotion, and Musk and the Tesla Board were on a spending frenzy building that Gigafactory in Reno. Today the stock price is at $215, and their revenue has exploded to $23 billion over the last year. Compared to 2016, the stock is a bargain. I understand the skeptical folks that have always focused on the value metrics and fundamentals. But there are things that this company is doing that have never been done before on this scale. Battery prices have dropped by 50% since 2016, which is the most expensive part of these cars by far. When a family wants a new car, the conversation in their living room will include mention of cars like the Toyota Camry, Honda Accord, and now the Model 3. Ford, GM, and Dodge have all but given up on cars. And Tesla has the Model Y SUV in the works to compete with the likes of the Toyota Rav-4 and Highlander (high profit vehicles for Toyota). They have debt, they have credit, they spend a lot on their future, which to me, is looking incredibly bright. Investors looking for quick returns and high profits now are completely missing the forest for the trees.
18
There are two sides to this. One side is the ability to produce a car that is far ahead of the competition. Tesla has done that nicely.
The second piece is their ability to do that profitably and create value as a company. Their share price soared on the story and the initial reactions to their product. The issue is have they ever done it profitably or have shareholders and the government just enriched a few rich people who own the cars and some some early investors and Musk? The Tesla business model may be all hype. That will be ugly and the share price will dive even further if it becomes clear they've never been profitable and have no hope of getting there.
1
@Buzz A - Last year, they showed they could shape up and generated solid profits for two quarters. But capping their spending and growth rate to focus on current profits is not Tesla's style, at least not until they've completely dominated the auto industry. What you're saying is that even with revenue growth that more than doubles every two years, the stock is going to keep tanking. It's funny when I hear about Tesla going bankrupt due to a $700 million "loss" in one quarter. It's not a loss, it's Tesla investing in itself. I think that's what is being missed by the traditional crowd.
2
@Buzz A
You lose half the room when you question their ability to create value because that’s the essence of the debate. Some people think manufacturing old technology today at an accounting profit equals value. Others think innovating to create tomorrow’s car and energy technology is creating value, regardless of the accounting profits you show today. Amazon settled this argument in retail and web services; let’s see if Tesla will do the same in transportation and energy.
5
@JG
Chasing excess capacity is not going to save them. Taking more deposits on cars that are not even in the prototype stage will not save them. They are just making a pyramid of a company.
There are lots of good and bad things that can be said about Tesla. How many of the people who are commenting have actually driven one? We test drove a Model X last year and afterwards did not want to get back into our own car; it felt like we were stepping back decades in time. For sure, there are lots of things that can still be improved, but Musk's achievements and his overall influence outweigh the negatives. People comment a lot on his personal character - I've read the book about Elon Musk and also read about lots of other business and political leaders - fact is, very few people have aspirations as big and as daring as Musk's - he is willing to go well beyond what others would even consider; so for those who complain that he's not as warm and cuddly at the same time, too bad. I live in the UK, and one of the early electric cars of the early 2000s was a horrible mis-shapen box called the G-WIZ. It managed about 20 mph on a flat surface, there were many hills it simply couldn't climb and it had enough range for the school run as long as there wasn't too much uphill along the way. Yet people still bought them because they believed these ugly boxes represented something more important. Thankfully, Musk demonstrated that electric cars can be powerful, sleek and appealing and he has forced the global car industry to get their electric acts together. Even if Tesla ultimately fails, Musk will have achieved much.
44
This article is in the "Business" section, not the "It doesn't really matter if it makes money because it is important anyway" section.
3
@Benjo how is your short position going, now that we are in the business section?
4
A key problem for any pioneer is the transition from the buyers being enthusiasts and early adopters to just being customers. Early adopters accept (even expect) teething problems that can come with bleeding edge, and are much more forgiving; after all, they have (drive) the newest and hottest. Now that the market for electric cars becomes more mature and others are entering, things like reliability, value for money, and safety become a lot more important. The big question is now whether Elon Musk is the best person to lead Tesla now that it's becoming a car maker (with very good cars and technology), rather than a very hip and likeable startup. I am not sure he is.
7
I think Tesla has been the driver in demonstrating the viability of electric and to think that other auto companies are maintaining a stranglehold on our future still offering mostly gas-fueled vehicles amidst our global environmental crisis is offensive.
Considering the long-term cost savings alone of not having to visit the gas station on a weekly basis should be enough to justify the purchase of an electric - any electric. As a cost comparison, I estimate my electric bill for recharging at around $60 per month vs. $50 a week at the pump.
As a consumer, my experience runs counter to all the bad Tesla press. I am an owner of a Model S and was pleased enough that my wife purchased a Model 3. These are hands down the best cars I've ever driven (the handling, torque and speed, design and packaging) and we haven't experienced any serious issues.
I used the auto-pilot on occasion and only when I knew driving conditions were safe i.e. very few cars around me on a freeway. It's not a feature that is that important to me but it came in handy on some longer journeys and I treat it more like a glorified cruise control. I do think self-driving is an over-rated concept across the board. I actually like driving my car.
27
Elon Musk makes a bold declaration, investors and fans get pumped and an a new infusion of cash is made, then, with much less fanfare, the news comes out that the targets will be missed and the costs have increased.
I love innovation but there needs to be more than excited rhetoric around the products. There needs to be empirical evidence that the products actually match the hyperbole. Tesla continually gets a pass on over promising and under delivering.
Anecdotal evidence of a very small sample is not robust empirical data. The market and investors need a full accounting of the actual capability of Tesla to enable an understanding of the actual and true value of the company.
6
@Lostin24 - I think the high internal expectations and continued failure to deliver is part of their strategy. It masks what they've actually achieved, which, when you step back and look at it, is astounding. The market is having trouble pricing this company because it's digging through the weeds looking for empirical evidence. All it needs to do is step back and see what's happening.
3
My wife and I went down to the Tesla store at Stanford Shopping Center recently to test drive a Model 3, ready to plunk down the money for a Standard Extended Range model. We didn't buy it.
Yes, the design is clean and beautiful and the acceleration, even in this base model, is exhilarating; that can't be denied.
The big obstacles for us are:
(1) It's very low to the ground, which makes it hard to get into and, especially, out of (and the more expensive and presumably higher Model Y won't be out until the end of 2020).
(2) I don't like the faux-iPad interface and don't want to have to step through several layers to adjust seats, mirrors, wipers, etc. Old school, I know, but I don't want to have to take my eyes off the road quite so often.
Minor obstacles include limited color choices, with high charges for the existing ones, and the inferior sound quality on the model we test drove.
Of course, YMMV. In any case, we wish Tesla luck. The Model S and Model 3 have changed the way we look at electric cars.
5
35K is a fair starting point for a Tesla Model 3. My Acura RDX also starts at 35K but I was happy with the final cost of 50K for a fine car. What I can't believe is that many people in my area are willing to fork out 70K to 80K for a supersized, fully loaded pickup truck.
I live in Storey County, where Tesla has its gigafactory. I will consider a Tesla for a "town car" in the future since I no longer do long range driving like going to Santa Fe for the opera. For the hard stuff like plowing snow or hauling gravel, I depend on my 10 year old beater of a pickup truck.
Come on! If you really want a Tesla, Go For It! Don't be cheap about it. You can't buy everything you want at Walmart, Amazon or eBay.
5
But you can buy a Bolt EV at the hometown Chevy dealer. The Elon Musk fanboys will turn up their noses, but they don't matter.
1
Elon Musk has created a business that is critically important to the survival of human civilization. Global warming is accelerating; mega-storms are becoming common; sea level, as reported in The Times, is a foot and a half higher today in Manhattan than it was a century and a half ago. So Teslas, which use about a fifth as much fossil fuel as internal combustion engine cars, are key to slowing climate change devastation.
Yes, in the few short years Tesla has been producing in volume, it has not been capable of ironing out all of its manufacturing problems. But having said that, Ford and GM are certainly no manufacturing geniuses, and their products are not loved in nearly the way Teslas are by their customers.
So this article doesn't discern the forest for the trees. Short-term Tesla has problems to iron out. Long-term, it is perhaps the most important company on the planet.
36
@Sean I applaud the electric car leadership, but if Tesla was really motivated by environmental concerns they would also produce an economy model. $35,000 is no economy car.
4
@Pete This is the first viable and successful all-electric car ever produced. They're figuring out how to do this. Give Elon some time!
6
@Pete
Absolutely, but my best guess is this is the goal. It was not affordable initially to produce an economy model, so they began with a luxury model to bootstrap their way gradually to an affordable mass market car. Elon also mentioned a goal of a 25k car, if they survive another year or two.
2
GM's electric car is down 27% for Q1. Their overall sales are down 7%. FCA profit fell 29% for Q1. Ford sales dropped 1.6% but they have basically have stopped selling cars. So let us put the sales decline in perspective - the industry is down. However, Tesla still sells the best car.
21
@Jeff. Not according to Consumer Reports.
9
@Greg actually their surveys say customers rate it the #1 most satisfying car ranked. Talk is cheap. Money with mouth otoh
4
@Jeff
'Ford sales dropped 1.6% but they have basically have stopped selling cars'
Ford sold 2.4 million.
Tesla, not so many, in fact, about 130k or so.
But I love your enthusiasm:
'However, Tesla still sells the best car.'
That's really heartwarming.
3
I leased a Tesla a month ago. It arrived in three days. I commute twice a week to a business 120 miles away. My conclusion after a month is that this is simply the most practical automotive choice available. Charging is a breeze. You put in a 204v outlet and it charges when you sleep. Even getting the brand new 55k fully loaded version, I am saving $100 a month over my Audi, that I bought three years old with 45k miles. The Tesla has numerous safety features. Autopilot is not perfect( it is not happy if the lane markers are missing) but it has seemingly already saved me twice as I drive home late at night. Besides it is a ton of fun. 310 mile range. The lights dim automatically. The wipers come on automatically. It would tragic if the short sellers successfully undermined the only company to reimagine driving from the pavement up.
79
@Chris Tellis
Although I suspect most Tesla owners also own a home, no one seems to consider that owning an electric car at this time becomes burdensome if you don't have access to an electric charging outlet where you park it at night. The vast majority of americans don't have access because they can't just 'put in a 204[sic] outlet and it charges when you sleep'. They rent - and don't tell me there are enough charging outlets at your office, or gym.
Furthermore, if one wanted the Model 3, why would a cost increase of $3,500+ above $60-80K be a relevant issue?
2
@Chris Tellis
"this is simply the most practical automotive choice available."
True, if your primary purpose for having a car is commuting. And you are rich. Tesla's problem is that the vast majority of vehicle owners need them to do more than running back and forth on a reliable commuting route. BEVs will never be more than someone's "second car".
3
@Mike A. yes, but nearly half of all the cars in the US are “second cars”. So even if everyone still needs a gas car, half of all new car purchasers could reasonably consider electric. That’s a huge market.
4
Telsa has done something that the major car manufactures have failed to do for the past decade. They have made a care in the image of a smart phone (specifically apple). Their cars have combined the beauty of design with cutting edge technology. No one in the business is doing over the air software updates for cars.
18
@Paul Lopez
'Telsa has done something that the major car manufactures have failed to do for the past decade.'
Sell cars?
Give Tesla a break! The technology has turned auto transportation "on its ear."
The tax payers bailed out GM Chrysler, etc.
Model 3 is truly amazing in technology and is clearly the future.
What would all the other be doing if Tesla did not "poke" them?
?
43
@Chris Anderson
I guess you missed this part about the model 3:
"Then owners started to complain that cars had arrived with cracked windows, leaks or unreliable video screens. In some places, Tesla turned to outside body shops to repair scratches and other paint defects before cars were delivered to customers".
Tesla designs are pretty good, and pretty innovative, which is good for the industry overall. Here's the problem though...... they are not good a manufacturing in volume. When they were a small niche high performance high end producer of low volumes, they did OK. Once they tried to turn the corner and become a commodity car provider with their Model 3, they have pretty well shot themselves in the foot, and continue to do so.
You like the model 3. Great. Problem is.. it is the Model 3 that is essentially killing Tesla... while big automakers are coming on line with competing products in the next 18 months... you know.. companies that actually know how to produce in volume, at quality levels and prices acceptable to consumers.
8
@Chuck
No, they actually are not coming out with competing products in the next 18 months. This article is referencing early production issues that have been largely resolved. Check out what Sandy Munro has to say.
@Chuck Good to know. We were under impression that Bolt is a killer. After that it was suppose to be Jaguar i-Pace but failed short with delivery. Then Audi came with a big promise of e-Tron, but wait you can get it but with no batteries inside... Now a big challenge is coming from reputation VW but unfortunately SK Inovaatoin was sued by LG Chem and that will delay the plans as well. Two bad Tesla does not have this problems, otherwise we will hear about them :(
2
Tesla might be a decade ahead of the big three as far as autonomous software technology; however, Tesla is a decade behind the big three when it comes to every other aspect of the automotive industry.
Good luck, Elon. Let us in Detroit know when you get here.
6
@kz
I generally agree with you.. though they are no longer a decade ahead of other car manufacturers in autonomous software... and I actually doubt they ever were to be honest.
Teslas do not meet level 3 or level 4 autonomy standards.. yet Tesla pretends they do and encourages owners to do hazardous things on the one hand, while warning owners to be safe and not rely on autonomous driving on the other hand. They are best.... 2+ on the standards. Typical Musk marketing charade....over promise and under deliver.
4
@kz
"Tesla is a decade behind the big three when it comes to every other aspect of the automotive industry."
Not according to practically every car magazine that has reviewed the Model 3.
I recently had the pleasure of riding in a Tesla. If I was in the market for a new car I would go Tesla. The owner has had his for a year and loves it. My impression? An extremely well thought out vehicle. Quiet, comfortable, great visibility and lots of power. 250+ miles per charge? About the same range as a tank of gas. Freedom! Charging has never been an issue for the owner as he said quite easily done from home and nearby charging stations mapped on GPS. Unfortunate tax incentives are diminishing but still an extremely smart choice.
15
@Connie
The median range for a gas powered vehicle is 410 miles - significantly higher that the median for a n EV of 114 miles. In addition, it takes 5 minutes to refuel a gas vehicle vs 1 1/2 to 12 hours for an EV to recharge and you can see that the gap still needs to be narrowed to get the masses to switch.
6
@Edward The network of charging stations are expanding faster than ever before. There are now office buildings that are including EV charging for their employees in their parking lots. All of the malls around me have EV charging as well. Range anxiety is a real issue but something that can be managed.
2
@Connie
You cannot, even today, drive cross country in a Tesla, unless you are ready to scrounge and distort your routes to try to find charging stations and are willing to wait around for the charge to complete.
Once again.. great ideas and innovation from Musk.. but he always over sells and under delivers.
5
The auto business is probably the most thoroughly scrutinized segment of the manufacturing economy. Very big differences in projections for one company, or one product, are based on manifold quantitative factors, not just personal desires, or even the lure of shorting or promoting anyone. As long as the American public remains fairly constant in wanting pickup trucks and not embracing energy or climate conservation, these analyses should be mostly similar, and stable. Ten bucks to three hundred estimates for the stock represents something else entirely: an unusual degree of uncertainty. To me, this means that global uncertainties (can we say China) are increasing, and that the entire sector is at risk. So some wealthy folks are going to have windfalls; others serious losses. Very little of it has to do with product quality, Musk’s erratic persona, or the willingness of other manufacturers to experiment. Personally, I’m getting old, and self-driving, traffic and hazard-aware cars are coming along just in time, but somewhat slower than I would have thought.
5
Musk, not Tesla, lost my confidence. I booked a Model 3 when it was first announced.
When it was my turn to get it, instead of $35K, as I expected, the models available were the higher-end version, close to $45K. It felt like bait-and-switch.
Then, I couldn't keep up with all the marketing strategy changes: sell the cars in stores, no, sell them online, no, close the stores, no, keep the stores open.
I am still determined to get the car but on my own terms. And by the way, since I will be using it around NY, I definitely will not need the automatic pilot (who in his/her right mind....?)
12
@college prof
You were definitely a victim of bait and switch.. because Tesla simply cannot make a profit on the low end model 3.. no matter what Musk claims.
1
I've been watching Musk for quite a while and I still can't decide if his ambitions goals are smoke and mirrors or are real. Because of that, I think buying one of his cars is risky. What will owners do for parts and support if the company goes under?
7
@Johnny Stark Yeah, Tesla’s debt burden and musk doing arbitrary things like shutting stores one week and then opening them the next does not inspire confidence in the future. The continual churn in their executive ranks and poor quality reports also makes me question them. If there is a recession they are in big trouble as a company, although I think an acquisition is more likely than just getting shut down. I want to buy electric for my next car, but probably not with the added drama Tesla and Musk bring.
5
@Johnny Stark
He is a visionary for sure.. but he is also very willing to use full on smoke and mirrors to press his vision with consumers.
If his vision and innovative nature were properly mated to an actual car manufacturing company that could produce large quantities of vehicles of quality at competitive prices for consumers... the rocky road Tesla is on.. would be instead.. a smooth expressway to success.
Note: it is common for visionary innovators to impress with good invention and design.... and then fail miserably to deliver in any scale to consumers.
3
@Johnny Stark The worst that could happen is that Tesla is bought out by another company, but that is unlikely. The cars will be supported in any case.
1. We have no country wide charging stations network yet
2. Electricity prices hiked
3. Charging takes several hours
4. The car is not luxury, but it costs like the one
I wish Tesla success. I believe electric cars make a lot of sense:
1. CEO is building new type of industrial facility in USA.
2. Significantly less number of components. Easier to automate production. Less price.
3. Easier to recycle waste and materials
4. Global accumulator battery for electricity. This is very needed for diversification of energy sources.
I don't wish Tesla success:
1. Military forces still need gasoline cars
2. Airplanes and ships still need gasoline
3. Very unpleasant CEO
3
@Sergey Hazarov
1. Tesla has a nationwide changing network. You can go about anywhere in the US and Europe in a Tesla. Other charging networks are also coming online for other cars with Electrify America investing 2 billion (part of the VW dieselgate settlement) in charging infrastructure.
2. I don't know what the cost for your electrical cost are is so can't really comment on that, but by switching to TOU plans one can dramatically cut their charging cost cost.
3. While it does take a couple of hours to change at home, you're missing the point. The point is if you're like most people you'll park your car after a day of work and plug it in. In the morning you'll wake up to a "full" car. No need to make that mad dash to the gas station! Also when traveling there are plenty of high speed chargers that will charge from 50 kw to 350 kw. The current Model 3 changes at 250 kw and will add 180 miles in 15 minutes and can go up to 310 miles on a full charge.
17
Tesla has a nationwide network of supercharging stations. There are also alternative charging stations (that are slower). It takes less than an hour to charge at a supercharger. Tesla has improved the charging time on highway trips using superchargers through software updates.
While not covering every inch of the U.S. with superchargers, they are to be commended on this buildout and focus on improving the technology through software updates over the air.
5
@Sergey Hazarov I'm not sure where you get your data, but you can travel along all the major highways and find a charging station a reasonable intervals. Also, more employers are offering charging stations in the parking lots of their buildings, so that employees with EV's can charge while at work if needed.
1
Layoffs? Poor sales? Quality issues?
Then why is Mr. Musk the top-paid CEO, receiving $2.3 billion last year?
7
@LD Kirshenbaum . He didn't receive $2.3B. He gets stock if the value of the company grows to $650B over the next 10 years. Current Market value is $38B.
So...he would get about 40 basis points of the increase, if it happens.
9
@LD Kirshenbaum - Musk is the top-paid CEO on paper only. The vast majority of his pay is based on aggressive performance targets which Tesla is unlikely to meet. If the targets are not met, he will actually be one of the lowest-paid CEOs around.
14
@LD Kirshenbaum
They are not having poor sales, except the Model 3 is cannibalizing the X and S. Last quarter's dip was mostly due to delivery bottlenecks to Europe. An upcoming refresh of the X and S will boost their premium line back to where it was, but those sales of those vehicles will slow in the leadup to that. They are building a megafactory to build Model 3s in China, which will be a huge boost to sales and profitability.
1
The article neglects to mention that there are many "investors" seeking to profit from making Tesla's stock price fall, and have enough market clout to make that happen. There are quite a few such investors who portray any minor glitch as a full scale disaster for Tesla. Case in point: just about every car maker on the planet periodically offers sales/incentives to attract buyers without getting attention. But when Tesla does the same thing it's portrayed as the end of the world for them. For full disclosure I have owned a Model S for 3.5 years and couldn't be happier with it. Best car ever by far. I do not own any Tesla stock.
74
@David
So what.
There are also many investors that seek to profit from Teslas success too.
Welcome to the investment market, and how it actually works.
8
Great ideas mean nothing without the ability to focus on execution. Musk's decision to build space rockets while launching an automotive firm was the bright red light no one should have missed; he's a child in the playpen looking for new toys asa he tires of the old one. If that didn't alert everybody out there to the inevitable outcome, they have only themselves to blame.
The result isn't in doubt and not surprisingly, it means that like Musk, our automotive 'analysts', big time investors and his complacent board of directors have no idea what they are doing either.
7
@ijarvis
I agree.
I think Musk will be successful in his rocket company. He has a lot of market exclusivity and high profit per unit in that niche.
With Tesla though... he will fail. But he will find a way to soak up wealth from the company before it flounders and he will walk away.. leaving an entire customer base hanging and losing when it happens.
1
@ijarvis
A child? SpaceX is dominating the launch industry and Tesla is the first scale electric car company producing some of the best vehicles ever produced. Both of these accomplishments should have been impossible for a startup, but he made it happen. All he is trying to do is build the future we were promised.
5
Have you tried to build a space launching system and electric car company from scratch?
4
Benz, BMW, Audi, Volvo, Porsche...nine have been able to launch a fully electric car and ramp up production. Not a single manufacturer!
What Tesla has done and is trying to do is difficult.
But if anyone can do it then Elon Musk and company.
40
@M It is clear that the first round of EV's from the legacy car markers are placeholders, not competitors.
They have less range, less efficiency, less performance and are most costly than Tesla. They are also money-losing cars and they are not ramping up for mass production. They are show pieces meant to say 'we have electric cars.'
I expected more, but the legacy car business seems very very resistant to real change and innovation.
5
Audi and Jaguar are now selling able competitors to the Tesla X and S (e-Tron and iPace). Ramping up production isn’t t going to be a problem for these companies who have 100 years experience in the industry. Tesla’s production problems are not in the unique power train, but rather in the regular car stuff.
Musk and Tesla deserve our thanks for their pioneering efforts. But just as in the mythical Old West the time of the cowboys comes to an end, and the shopkeepers take over.
3
While experts are wondering if Tesla is years ahead of the competition, it’s mid 2019 and no mass produced electric sedan has yet matched or exceeded the range of Tesla’s 2012 Model S. Jaguar, considered a serious challenger, just had a recall last week that requires every car to be serviced at a dealer for a braking issue. When Tesla had a braking distance issue pointed out a year ago, they fixed it with over-the-air updates, like your iPhone. The problem with measuring a company investing for the long term in arbitrary 90-day intervals is that you’re forced to measure and justify ultimately meaningless measurements all the time. A good example of that is measuring the impact of subsidy reductions on demand. It’s interesting in the short term, but completely irrelevant when you realize most new passenger cars will be electric within a decade and a half.
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@Anon The technology and the product are amazing. But if he can't make payroll in the short term, the long term won't matter much.
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The trouble with this viewpoint is that Tesla needs money to pay its bills and is running out of it.
Next stop insolvency?
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