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Tesla unveiling Model 3...

Discussion in 'YachtForums Yacht Club' started by YachtForums, Mar 30, 2016.

  1. olderboater

    olderboater Senior Member

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    lol....well, just helping out. Not important except it is an official term.

    Don't hire me to handle your portfolio. I'm probably way too conservative with my own, but I don't like gambling. Well, let me rephrase. If I'm going to gamble I'd rather do it in a Casino than the stock market.
  2. Loren Schweizer

    Loren Schweizer YF Associate Writer

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  3. olderboater

    olderboater Senior Member

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    Wow....now that's most interesting. I think some of the things they're developing will be successful, but I have a lot of doubts about them as an independent car company. I don't think their real future is in cars. I don't know what their build capacity is, but their sales capacity is hampered greatly by their decision not to go with dealers. They failed to anticipate the impact of the restrictive state laws. In my opinion too, as a result, a lot of their advertising dollars are wasted as they're spent on areas where they have no cars. If they ever intend significant growth, they'll have to change their manner of distribution.
  4. German Yachting

    German Yachting Senior Member

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    Again, I just have read what has been posted but not the articles. With that caveat, you need to dig into the footnotes to get a full picture what the B/S and I/S really means as well as the supplemental cash flows disclosures.

    Regarding Tesla, I agree with their model to not go the dealer route. It shakes up the industry and enables them to maintain control. It's a new market with this model, akin to the rise sharing market going on. We will see if the new investments and equity issuances can jumpstart the gigs factory to produce but I honestly would invest with the leader based on his track record, albeit maybe down the road. Their stock is too volatile for my likings.
  5. ekiqa

    ekiqa Member

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    You obviously don't know much about Tesla, do you. They do NOT advertise anywhere, except on their own website, and in their own stores. Unlike every other car company, which spends billions on advertising, Tesla doesn't have such costs to recoup.
    Regarding dealerships, there are only a few states where it is a problem, and not in areas where they would have high sales anyways. It also lets them sell at lower prices, no middleman taking a huge cut.
  6. olderboater

    olderboater Senior Member

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    Actually I know quite a bit. I just disagree with the approach for the long term. Perhaps, I should have used the word "market" rather than "advertise" as they do choose to get the word out differently. But, rest assured, there is still a cost to getting coverage such as they do. Certainly they spend a lot less than others, but they sell a lot fewer cars too. Maybe my use of the word, "advertise" isn't quite as bad as you think though as per their annual report, in 2015, they spent $58.3 million on "advertising, promotion, and related marketing expenses". Still, that is a relatively small number, even as a percent of sales.

    As to the states that the dealership issue is a problem, many are not high volume states. Texas certainly is. Michigan. Arizona. Wisconsin. Kentucky. As to letting them sell at lower prices with no middleman, I disagree there too. There are middlemen, just employed by Tesla. Can they do it more efficiently than if they were employed by others? I don't think in the long run we know.

    At Tesla's current volume most of this is irrelevant. However, as they look toward potentially being a real competitive brand of cars, I think it will become more relevant.

    My real point though was that the greatest potential for their technology advances is not in selling cars. That's just a vehicle that will help get them there.

    It's fine to disagree with my opinions. However, they're based on facing similar choices in other industries and having read every Tesla 10-Q and 10-K completely for the last five years or so.

    I'm actually a fan of Tesla. We would have bought their convertible model if they hadn't stopped making it. They are an interesting company. Want them to succeed as we did in a weak moment purchase a little of their stock in 2012 at $30 a share. Sold half of it in 2015 though when it dipped to $210 a share.
  7. Loren Schweizer

    Loren Schweizer YF Associate Writer

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    While not ubiquitous, sprinkled here and there in South Florida, are charging stations for EVs.
    In the parking lot of the Pinecrest Library, are two of these, one for Nissan and the other for Tesla.
    Natch, the plugs are different.
    The Nissan "pump" (they resemble a gas station pump on Atkins) is all modernistic, would not be out of place on a Jetsons cartoon.
    The Tesla unit is smaller and a bit more spare in appearance.
    Both are "free".
    Interestingly, the Nissan source was "OUT OF ORDER", albeit with a professional-looking sign to that effect.
  8. Kevin

    Kevin YF Moderator

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    It was announced last week that the Superchargers won't be "free" (with or without quotation marks) to future Tesla 3 owners.

    http://www.autoblog.com/2016/06/01/supercharging-not-free-tesla-model-3/

  9. German Yachting

    German Yachting Senior Member

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  10. Takeahike

    Takeahike New Member

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    Every time I've ridden in a Tesla, I've been pretty impressed. Given the price drop on the Model 3, I'm definitely considering it in the near future.
  11. Das Scorpion

    Das Scorpion Member

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    Devils advocate time....I hear tell of the auto pilot failure be-heading a driver trying to switch it off, no Bueno! Ill pass and pay for the gas...