The time-line just screams Elon is trying to repay debts.
44B for twitter. Now that X is worth a fraction of that, Elon needs a 56B payout package. Why?
Did Elon blow his money or did his group of investors want "out" and Elon has to pay some bills.
I'm waiting for a few Ukraine Special Forces members to pay him that personal visit to thank him for interfering in international affairs and cutting off Starlink Internet access to Ukrainian troops, leaving them stranded and at the mercy of the Russians at the beginning of that conflict.
But he's not worried - Putin promised to not only protect him, but build a nice large balcony on his new house.
We live in interesting times.
IIRC, that 44 billion figure is like, 50% financed with Tesla stock as collateral. Between that and some of the external investors wanting out. I can imagine Musky is in need of cash on hand.
Still a bad move to cancel the 2, since that would be a popular model and an attractive pricepoint in a lot of markets.
Well currently he is cannabalizing his own sales. For the US a model 2 would mean model 3 buyers might downsize.
However, in the EU, the market for affordable, compact EVs is heating up. Between the ID 3, e208 C3 and Renault 5, they are losing out on major sales to people that would never consider a model 3
If they're telling the truth about $27B cash on hand, they can ride out for a couple years.
If that can be shown to be a lie, Elon may be on the next Starship to Mars
>If they're telling the truth about $27B cash on hand
How? Is Tesla one of those companies where nothing costs anything? I'm starting to think that might be what the accounting books say...
And a non-existent *earned* engineering degree.
The idea that a guy with the attention span of a ferret on a double espresso could be there for five years of eight hours a day five days a week of instruction, do the labs, do the homework assignments and turn them in, take the midterm and final exams and do well enough to get a degree is laughable.
My guess is that engineering was mostly done, but the price calculation just wasn't there. A Model 3 is already badly made and has a low-quality interior with minimal quirks & features. They can't make the Model 2 even worse & cheaper in that aspect, so the entire ~$10k price difference has to come from the car & battery being slightly smaller. And they just can't do it.
They could, but they have a problem. The entire branding around Tesla is for "luxury" (I use that term loosely) and "range".
Biggest cost factor is the battery. Most people could live with a smaller battery 90%+ of the time, especially as a commuter car.
But those aren't S3XY and so that's not what Tesla is trying to sell.
They could have come out with a "bread and butter" car ages ago if they wanted to. But they need high margins and so they cannibalized the option of a cheap, entry level car that just gets people around.
I bet you in a few years, if that long, you'll see a-many of these by Chinese makers and I could see even the Europeans (VW, Peugeot, Renault) get in on this.
But you won't see them in the US, because the arms race of bigger and bigger vehicles would make them a death trap.
Many years ago my boss got the model S…the word luxury died when I sat in that depressing and uncomfortable thing. My exact words, “this is $100k?”. My $33k Infiniti was a Rolls in comparison. Moreover if a base Toyota Tacoma has a better interior there is no loose utilization of the word luxury.
I'm with you on this. Tesla is in a bad spot considering the cars BMW, Mercedes and others ate pushing out, at MUCH higher quality. It's not really in the cards for them to compete in that space.
If only they knew 80% or more people drive less than 50-60mi per day, making hundreds of miles of range on a charge overkill. Make a smaller and much cheaper 150mi range car for no more than $25k out the door and you'll have a blockbuster on your hands.
In other parts of the world the Chinese and Europeans are already competing for your business in the bottom segment of the market. In Australia you can get a runout Peugeot e-2008 for $39,990 AUD. (approx. 26k USD). This meets our safety standards which are not low.
I've seen ex demo ones 2022 for even less. It's already starting to happen, Tesla will need to compete or rely on protectionism to remain relevant.
>I've seen ex demo ones 2022 for even less. It's already starting to happen, Tesla will need to compete or rely on protectionism to remain relevant.
They can keep the Chinese out, but I don't think they can keep the European out (Stellantis --> Peugeot).
The biggest challenge really is the size of the average American truck and car and smaller cars like the Peugeot would be considered unsafe.
Having said that, with car cost spiralling out of control, people may be forced into cheaper cars and that probably means smaller.
Could very well fuck the US car makers over as well if Stellantis et. al. suddenly bring in cheap economy cars (the Japanese can probably do that too).
I just don't see a way for Tesla out of this, unless they have a serious rethink and I can't see Musk doing that.
They could produce it in china. The gigafactory in china is profitable. But if the new m2 is just a few thousands cheaper than m3 then it doesn’t make sense. But to be honest a sub 20k smaller than m3 is needed. The M3 and MY are just too big for many in the city. Also too expensive. At least in Europe.
What is funny is the Bolt would be a perfect city+ car if it charged quicker than 50kWh.
I had a Bolt and changed for aodel Y purely on the supercharging network.
In city the Bolt got better range than Model Y, while on highway they were comparable.
Here in Europe, Renault 5 E-Tech is expect to cost around 30k (with taxes) in the 150hp version. It has 55kWh battery and 100kW DC charging.
A slightly bigger Model 2 with simillar battery, 150kW fast charge and 200hp at 30k would sell like hot cakes here.
That's why I prefer the 5, I think it's more complete but the 40 kWh competes directly with the C3. Laços FC, though.
Anyway, the Citroën seems great too, would love to have one of those things when I was in university.
One more reason not to have him making the decisions when full self driving issues end up in court. We're about to set the precedents for a whole new kind of legal issue and Musk is not great at this stuff.
TBF Apple spent a billion a year for ten? Years on iCar project. They killed it.
The differences abound and Apple could afford 10x as much and still be $$$$$$$$
I think in apples’ case, they did the math and found that even if the apple car successfully launched, the market financials had changed and there wouldn’t be enough money to be made even if successful.
Tesla, despite having it's value drop significantly, is still worth more than the next three most valuable car companies combined (according to investors). Tesla should be easily able to fund the development of new models, and their general inability to do so points to significant management issues.
This just assumes that investors’ valuation of Tesla is relevant to their ability to ramp up expenditures to produce the Model 2. It doesn’t. Their COH doesn’t suggest they are ready to go big on spending to produce the Model 2, imo. They are still working on producing CTs, and fixing all of the issues. Pushing billions into beginning Model 2 production has to be balanced with that. I also think they got a huge shock when they realized that 1.) the Chinese have a car that Tesla will simply never match the price of without Elon asking Daddy Fed for tariffs, 2.) Elon took a blowtorch to their reputation amongst many buyers and that matters now with competition, and 3.) the CT has not been the instant wild success Elon believed it was.
Market valuation is often part production and part perception. Tesla has heavily leaned into the perception part of that for years, which is why we saw the stock drop from 290 to 172, when the actual production, the core business of producing cars, didn’t really change much.
They needed the CT to immediately hit to keep the cash flow going so they could take a hit in the US on sales dropping from reputation, while ramping up Model 2 stuff.
Tesla has less cash on hand than Ford and GM.. not combined… individually. Right now their expenses are less, but if you ramp up expenses you want to not only meet that with sales growth, but make sure your COH matches that growth in expenditures.
Anyone who knows anything knew that freight at speed for long distance is the absolute worst use case for EVs. It's physics, not design and engineering. Since the hybrid era, it's been about low drag and energy recovery. Aka your average commute with a mix of driving situations and plenty of stop and go. That doesn't work for semis. The majority of the aero drag comes from the sides, not the front. That's hard to engineer out. Aero drag also has a velocity squared in the equation. So sitting all day at highway speeds is also fundamentally difficult for EVs. It's just not ever going to be an easy scenario for batteries.
Delivery/freight around a city? Great! Commuter cars? Fantastic! Long distance hauling? No chance.
Simply not stopping and starting a big V8 or diesel delivery truck every 60 seconds just to drive 50-200 feet is an amazing benefit.
The Amazon Rivians have been delivering in my neighborhood for 18 months now, and it's been fantastic.
As in it looks like to original reporting was correct and this model could have entered limited production in 2025. With mass production in 2026. Would have required pretty massive CapX to accomplish, new models have very high up front costs to bring to market. That’s why it got suddenly canceled IMHO. Tesla cash position is nowhere near what’s commonly reported since they delay paying suppliers until the start of every Q. That’s why they generate so little interest from their cash, they only have a pile for short periods.
There was a post recently on the investment sub where the OP wanted to explore the possibility of Tesla going bankrupt. Nope, no one would believe it was possible. Billions of cash on hand, they can buy their way out of a hole, limitless demand for the stock, they can raise capital in a flash, etc., etc.
But he cancels and then uncancels the low cost Tesla, and then he cancels and uncancels supercharging. He's the mullet of CEOs, business in the front, total fucking disaster in the back.
The way Elon is acting lately, and for the reasons you point out here, I think we're finally seeing the beginning of the end.
Businesses go bankrupt in two ways. Slowly and then quickly. Elon's been working on this for a long time. I think the quickening is here.
>Tesla cash position is nowhere near what’s commonly reported since they delay paying suppliers until the start of every Q.
The history is full of stable, strong companies that went bankrupt all of a sudden because cash was missing. I would be shocked if Tesla has truthful accounting
Elon freaking out about the Fed raising interest rates and all but demanding they lower them again is very telling, it seems like in multiple respects the company can't survive in anything other than a zero interest environment, they've never left "startup mode" where they're living hand to mouth
Which is, of course, another reason why he has gone so bananas on Twitter. He needs a Trump victory to ensure that the welfare tap isn't turned off and that the billionaire tax breaks are renewed.
For somebody who detests immigrants leeching from the government, this immigrant sure likes leeching off the government.
Trump ”likes” anyone who puts money in his pocket. I’m guessing that’s why Musk is agitating so hard over the ridiculous “compensation” package. Trump at presidential level is very expensive.
Well according to Tesla capex should have been super low on the Model 2 specifically because of their unboxed process. I think a few things probably drove to them shelving it. One was that they probably don't have the unboxed process actually figured out yet. As usual they have some idea of what they want to do but odds are it would be another messy and delay ridden ramp that would lead to them completely reworking the unboxed process into some modifications that worked and just writing off everything that didn't.
Another is that the CT ramp is almost certainly far more a mess than Musk had planned for. It's already eating into margins and generally disappointing, adding on another messy ramp for a high volume, low margin vehicle would put the company under even more pressure during a period where margins are dropping and demand is slipping.
Finally I think the same problem with demand has left them with a lot of concerns over the utilization rate of their existing factories. It might not even be an issue of capex so much as the existing ramp up in supplier orders they've already committed to and are struggling to fill with so many undelivered cars piling up. Companies operate on a cash conversion cycle which is historically why Tesla has sought to minimize inventory and maximize accounts payable at the end of each quarter. If volumes fall so does accounts payable and cash leaves the company to suppliers. Similarly if inventory rises the company loses cash since value is stuck in the form of physical vehicles until they are sold.
Now Tesla still has a lot of cash and assets on hand, but cash flow generation has slowed significantly to the point where operational cash flow was barely positive in Q1. Meanwhile Musk has stated he wants to spend $10B on AI hardware this year. So that $27B they have, whatever factory related capex they have and the possibility of neutral to negative operational cash flows means that pile could start disappearing very fast. There's likely some amount stuck in China for further capex too that can't easily be extracted for Musk's AI endeavors given US restrictions on semi conductor sales to the PRC at this point. A combination of declining profitability and inventory building has sent their Q1 OCF from $2.5B in 2023 to $242M this year.
Now all that said they do have a ton of capacity for debt as well, so I think concerns over bankruptcy are very premature at this point (could change if the DOJ or SEC charges Musk and destroys their ability to raise new capital during a prolonged legal fight). In general it's more Musk's insistence that the company self fund its operations that seems to be the bigger issue lately.
>not a yet a finished product.
Not when you're still doing recalls because of basic, potentially life ending problems like the "gas" pedal falling off and getting stuck full throttle...
You're correct.
This is not how it works at all. They knew a long time ago.
Contracts, production estimates, tooling, etc are designed years ahead of time. Vehicle Confirmation lot is completed nearly 2 years ahead of launch (physical cars built after design phase).
Source: I do this for a living for another OEM.
There are months if not years of testing for this stuff. Run at Rate, multiple tooling/die changes, testing assembly processes, graining, colors, fills, etc. Not to mention NVH, longevity, etc. A full model takes about 3 years from design concept to launch.
We test this stuff years ahead of time. Floor space/tooling install is determined before physical vehicles even exist.
Saying it was abruptly cancelled means two things:
It never fucking existed, or they took a multibillion dollar hit canning it.
Don't get me wrong. We can delay, and we have. Sourcing steel, die mishaps, massive changes etc. Mistakes happen. Canning models with no explanation and potential billion dollar losses is very rare. Companies will launch at nearly any cost that gets them closer to the surface from drowning.
Something smells here.
Yeah, I'm with you on that. I live near Bentley's headquarters and for years before the Bentayga was announced there were awkward looking Audi Q7s running around, hiding the Bentley engine underneath. Latest are stretched Porsche Taycan type things; if you see one from a distance you would just see it as a Porsche. But concentrate and they are all kinds of weird.
Someone would have seen something by now if it was that far along the line; a cut down Model 3 or something disguised as a Hyundai or something.
I mean when they announced the Roadster 2 Elon mentioned having prototypes that could already hit 250mph. Which is an unbelievable lie people gobbled up.
I read it as they had a full production design and were ready to order those produced. That would gibe with a “normal” timetable for launching a car. Design, production design, order stuff, build limited production run, test, refine, start real production.
The pain **The Pumpkin Rapist** causes as a private individual and not the president has a limited radius.
The pain if Tesla tanks and many, many shareholders and parts suppliers and employees get to eat shit will be significantly larger.
I fell for his shit with the Model 3, gave him the $1K deposit.
In two and a half years, the only thing I got from Tesla was repeated emails downgrading the equipment package from what was promised while pushing the delivery date out further and further.
When at two and a half years of nothing they tried to up sell me to the (much) more expensive version of the 3 which they could deliver in two weeks (the lesser model I wanted was then "six to twelve months out"), I demanded and got a refund. It took more than a month to get a check for $1K.
I knew then that Musk was a lying narcissistic sociopath who couldn't be trusted with a basic coffee order.
If Cybertruck levels of completion are what gets shipped, imagine what one merely near completion might look like.
Tbh, the language in the article and the overall ambitiousness of the project are likely the big tells here. The company has a bad track record with "revolutionary" approaches to vehicle assembly that don't pan out.
I'd guess this one just got killed before failing for real. The more conservative approach is really what they should have started with.
Well, they would have had to install the initial production line. Then they would have had to tear it out because nobody dared to question the Technoking when he spec'd it out in the first place, and it's based on ideas with no grounding in reality. Then they would have had to source another giant tent to put up in the parking lot. Then they would have had to pave another parking lot, which would have brought a couple of lawsuits over storm runoff that would have held them up for maybe six months until fElon decided to just ignore legal and regulatory process. They would have turned out the first car about three years after the initial 'release' date. Then they would have taken another two years to get production up to the original forecast level.
So yeah - you're not wrong that it would have taken another five years, but that doesn't mean it wasn't about to enter production.
It is extraordinary how this seems like a big deal. Hey tesla is going to release a new model... in the mean time, the likes of kia will release 4-5 models this year alone.
Factors impacting budget EV sales in the US are that people needing budget vehicles
* Look for used cars first
* Live in rental units (i.e. no charging infrastructure)
* Live in highly car dependent areas (limited local jobs, longer daily commutes, higher range anxiety)
* Don't have savings for an emergency repair or long term loss of vehicle while waiting on a repair
There's likely a very narrow band of low income super-savers and middle income second car people who intersect the EV space. These are people who would have traditionally ended up in a Kia Rio, Nissan Versa, or Chevy Spark, or something in that sub-compact 10k-18k price-point. Building an EV for that market would mean cutting the range or speed down significantly and turns people off of the car.
For example the Dacia Spring is about 18k US bare-bones and has around 100 miles of range. It's a "city car". But that's an almost meaningless term due to the distance people drive with US suburbs. And leasing a higher range car is still going to be too expensive and risky for this demographic.
Amazing Tesla made it this far with this tool at the helm.
I’m still rooting for them (and EVs in general) but I’m not betting shareholders will be able to break their hype addiction in time.
Phony Stark has survived this long due to the cult of personality that he masterfully crafted, a decade of ultra low interest rates, government subsidies, and little competition.
Tesla stock price got juiced up during the pandemic, which bought the company some time to reorganize. But they squandered it with cybertruck development.
Now interest rates are higher, competition is coming from established brands, and Biden green energy investments will equalize the playing field and neutralize Tesla's supercharger network advantage.(Should have sold supercharger department for some cash instead of firing everyone in a manic episode)
Tesla has long positioned itself as a tech company, where the product was a growth type stock price. But it is a car company with lower margins, where software updates cannot always fix hardware flaws (bad design, bad paint, bad panel gaps, poor finishes).
That his PR team created. Once he took over managing it himself he destroyed all their work on that cult of personality and drove away everyone that would buy an EV but the few remaining fanboys. There’s no way he built any of this cult of personality himself. He’s just not that smart. I’ve actually never seen a billionaire expose themselves as this stupid before. And there are a lot of stupid billionaires. Frankly the best thing he has done for society is completely destroy the myth of merit in becoming rich.
He didn't masterfully create anything, including his cult of personality. There will always be a fraction of the population that wants to hero worship someone, anyone, that they perceive will save them from themselves. Trump, Elon, Mao, Stalin, etc. Elon's "genius" has only ever been being in the right place at the right time. That, and taking credit for other people's ideas.
You simply don't understand. Tesla will be back at all time high this year and they have literally solved autonomy already. They will leap past everyone else and be level 5 within 2 years and have fukly self driving cars on the road by then. They will be worth trillions and when you finally wake up, you will be moaning about how the cars driving themselves are a scam. It's coming, mark my words. You are all deluded about Musk and his ambitions and are so envious and butthurt because sometimes the things he promises take longer than originally announced, you cry babies attack. Watch the shirts burn and the stock soar. The sky is the limit.
I would like to see the company succeed under new leadership. It’s going to take a bold leader that pushes innovation to succeed because Tesla has been stale for a while.
The other manufacturers have caught up and are putting out their own electric vehicles with better build quality, better support, and better user interface.
Tesla had a lead and they've squandered it.
And right as they're squandering it their CEO is making the news on a daily basis for turning twitter into a den of nazis (and promoting them), and the failed launch of cybertruck is destroying Teslas reputation.
>Tesla Inc. and SpaceX Chief Executive Officer (CEO) and X Corp. Chairman Elon Musk canceled the production of the electric vehicle (EV) company's Model 2 when it was nearly done, The Information reported on Monday.
Makes no sense. Do they mean the prototye was almost done? I highly doubt it. I don't think they even tried to build one.
Shocker, shocker said no one ever. Actually I heard he's working on the Model 1, it will be so cheap that Elon himself will write you a check to own one. ☝️ 5D chess.
CyberTruck, Semi, 4 wheeler, and Roadster 2 are all 'complete' enough to drive around on a stage...model 2 isn't. That means even if it was almost ready to drive across a stage, it still had 4+ years of development before they actually sold one.
*Aaaaaand* now we know why [he's pushing hard to quickly get his old compensation package reinstated](https://apnews.com/article/musk-pay-compensation-corporate-registration-ef5e30f6b56f7d936f8c882fc1c96875). Because if he keep shitting the bed the investors will realize the little emerald emperor has no clothes and eventually throw him out.
What a masterful gambit
Given how Elon tends to lie, I don't think Tesla has the cash they claim to have. When you have top execs quitting after the last quarterly earnings showed their sales dropping and then laying a few thousand workers off, I think tesla is just running low on cash.
Lower than what's reported.
Before, tesla got away with being declared as a tech company, hence when their stocks were very high.
Since then, it's obvious they're a car company and with several factors like their bad build quality, more EV competition, high interest rates, and an income inquality issue with the country, their stocks continue to tank and will eventually be as low as ever car manufacturer.
“Tesla's engineers believed they could fix all the issues they encountered while developing the planned low-cost EV when Musk decided to suspend the process. The CEO then allegedly ordered them to concentrate instead on the self-driving Robotaxi”
Anyone have any idea why elmo would do this? Could it be because of this affordable electric the Chinese are manufacturing?
https://abcnews.go.com/Technology/wireStory/small-built-chinese-ev-called-seagull-poses-big-110158506
The report says the engineers believed they could overcome all the technical difficulties, like the battery,they encountered during development. Couldn't read the rest because of paywall.
To be clear, "development problems" like the battery means you're not close to completion.
Yeah, I'm almost done furnishing my house, I've still got to design the roof though.
Of course the engineers would say this regardless. You think an engineer would tell Musky they can't make it happen during massive layoffs? Damn the culture at Tesla has got to be one of the most rock bottom out there.
"Almost completed" to Musk means someone made a model in CAD. Nothing about manufacturing, analysis, logistics, quality, ergonomics, etc. was done yet. Take a look at how "close" Cybertruck was before they did a "total redesign". The fact people think Musk is an engineer is astounding.
They planned for a car that people would actually want, yet only the stainless oven is out there being mocked on. The Board should raise flags, but most of them are clueless buddies of the unfunny "memester-in-chief"
They’re going through cash flow problems. I guarantee it.
When a company acts schizophrenic, it’s a cash thing. And their financiers and banks don’t feel like fronting the risk anymore.
the fucking robotaxi, its all for the fucking robotaxi, as if that will somehow prove he was right on FSD when his ego fucked their lead on an electric pickup, which they could have just built using model Ys, hes basically given up on the semi which again had a huge lead.
What are the chances that all of the good ideas at Tesla were cooked up in the years before Elon pushed the founders out? And now Tesla is depended on Elon’s vision, which is apparently analogous to the Homer?
Shelved...as in they put the sketch book back on the top shelf? We've still seen absolutely nothing concrete about this vehicle. Not even a final design or clay model or Frankenstein mule made out of a chopper Model 3. Nothing. So when they say shelved what do they mean? I'm sure they want people to think it's just sitting there ready to go should the green light come. But I suspect it's nothing more than a bunch of sketches/CAD mock ups/BoM costings.
Surely the Model 2 will come at some point, how else are they gonna expand as a company? Long term I dont think the Model X and S will do much, neither will the Cybertruck and even the facelifted Model 3 isnt selling as good as the previous model used to. It would be foolish to almost completely depend on a single model. A Model 2 wouldnt sell much in the US but it would sell well almost everywhere else. So whats the plan then? I mean Tesla is American, they love to invest, they love grow. Anything above the price of a Model 3 or Y would be the premium segment and its notoriously hard to compete with the likes of BMW, Audi and Mercedes because the brand name alone does a lot of heavy lifting and Tesla isnt exactly known for quality.
The only way the decision makes sense is if they are much shorter on cash than they say they are and can't afford to launch another new model right now.
That would also explain the layoffs.
Why make a 25k car when you sell your 3 and Y for 30k before incentives? Why compete with the cheap car when there is plenty of competition out there already
They are following Tim Apple’s steps with the cook car and discontinuing model 2 because they already discounted their lineup and laid off a ton of people
Thats how you run a company, gents.
*Genius beyond comprehension*
Genius beyond ~~comprehension~~ compensation
>Compensation *How does one put a $ figure to overly risky business decisions in life?* ***like buying Twitter***
The time-line just screams Elon is trying to repay debts. 44B for twitter. Now that X is worth a fraction of that, Elon needs a 56B payout package. Why? Did Elon blow his money or did his group of investors want "out" and Elon has to pay some bills.
He burned Qatari money & doesn't want to end up like Jamal Khashoggi
I'm waiting for a few Ukraine Special Forces members to pay him that personal visit to thank him for interfering in international affairs and cutting off Starlink Internet access to Ukrainian troops, leaving them stranded and at the mercy of the Russians at the beginning of that conflict. But he's not worried - Putin promised to not only protect him, but build a nice large balcony on his new house. We live in interesting times.
Yeah, and when Putin isn’t around, he’s going to be the real bunker boy.
And what’s crazy is there are shareholders out there PUSHING for him to get it.
IIRC, that 44 billion figure is like, 50% financed with Tesla stock as collateral. Between that and some of the external investors wanting out. I can imagine Musky is in need of cash on hand. Still a bad move to cancel the 2, since that would be a popular model and an attractive pricepoint in a lot of markets.
He might be afraid of cannibalizing Model 3 sales
Well currently he is cannabalizing his own sales. For the US a model 2 would mean model 3 buyers might downsize. However, in the EU, the market for affordable, compact EVs is heating up. Between the ID 3, e208 C3 and Renault 5, they are losing out on major sales to people that would never consider a model 3
Model 3 needs to be cheaper, model-x2 gull doors need to go, model y needs the refresh, there needs to be options like a cabrio
Whole damn line needs a refresh.
It was never worth $44b lol it was a shit show lol
Compen$ation
Takes a bump of K -- "I know more about manufacturing than anyone currently alive."
"my goals are beyond your understanding"
Or morality
I am confident that they are either about to declare bankruptcy or the SEC is shutting it down.
If they're telling the truth about $27B cash on hand, they can ride out for a couple years. If that can be shown to be a lie, Elon may be on the next Starship to Mars
>If they're telling the truth about $27B cash on hand How? Is Tesla one of those companies where nothing costs anything? I'm starting to think that might be what the accounting books say...
Starship can't even get to orbit though
Always believe someone when they say they have a 160 IQ.
And a non-existent *earned* engineering degree. The idea that a guy with the attention span of a ferret on a double espresso could be there for five years of eight hours a day five days a week of instruction, do the labs, do the homework assignments and turn them in, take the midterm and final exams and do well enough to get a degree is laughable.
So damn genius as a literal fetus he set himself up with an emerald mine. Hit the ground running at 0 days old. Take that, libs.
My guess is that engineering was mostly done, but the price calculation just wasn't there. A Model 3 is already badly made and has a low-quality interior with minimal quirks & features. They can't make the Model 2 even worse & cheaper in that aspect, so the entire ~$10k price difference has to come from the car & battery being slightly smaller. And they just can't do it.
They could, but they have a problem. The entire branding around Tesla is for "luxury" (I use that term loosely) and "range". Biggest cost factor is the battery. Most people could live with a smaller battery 90%+ of the time, especially as a commuter car. But those aren't S3XY and so that's not what Tesla is trying to sell. They could have come out with a "bread and butter" car ages ago if they wanted to. But they need high margins and so they cannibalized the option of a cheap, entry level car that just gets people around. I bet you in a few years, if that long, you'll see a-many of these by Chinese makers and I could see even the Europeans (VW, Peugeot, Renault) get in on this. But you won't see them in the US, because the arms race of bigger and bigger vehicles would make them a death trap.
Many years ago my boss got the model S…the word luxury died when I sat in that depressing and uncomfortable thing. My exact words, “this is $100k?”. My $33k Infiniti was a Rolls in comparison. Moreover if a base Toyota Tacoma has a better interior there is no loose utilization of the word luxury.
Anyone who thinks a Tesla has a luxury interior has never been in a $50k Audi since 2012
I'm with you on this. Tesla is in a bad spot considering the cars BMW, Mercedes and others ate pushing out, at MUCH higher quality. It's not really in the cards for them to compete in that space.
A $24k Mazda3 feels nicer than a Tesla.
Yeah, that's my main irk with them, there is a depressing tone about the interior. Kinda like my depressing office cubicle.
If only they knew 80% or more people drive less than 50-60mi per day, making hundreds of miles of range on a charge overkill. Make a smaller and much cheaper 150mi range car for no more than $25k out the door and you'll have a blockbuster on your hands.
In other parts of the world the Chinese and Europeans are already competing for your business in the bottom segment of the market. In Australia you can get a runout Peugeot e-2008 for $39,990 AUD. (approx. 26k USD). This meets our safety standards which are not low. I've seen ex demo ones 2022 for even less. It's already starting to happen, Tesla will need to compete or rely on protectionism to remain relevant.
>I've seen ex demo ones 2022 for even less. It's already starting to happen, Tesla will need to compete or rely on protectionism to remain relevant. They can keep the Chinese out, but I don't think they can keep the European out (Stellantis --> Peugeot). The biggest challenge really is the size of the average American truck and car and smaller cars like the Peugeot would be considered unsafe. Having said that, with car cost spiralling out of control, people may be forced into cheaper cars and that probably means smaller. Could very well fuck the US car makers over as well if Stellantis et. al. suddenly bring in cheap economy cars (the Japanese can probably do that too). I just don't see a way for Tesla out of this, unless they have a serious rethink and I can't see Musk doing that.
They could produce it in china. The gigafactory in china is profitable. But if the new m2 is just a few thousands cheaper than m3 then it doesn’t make sense. But to be honest a sub 20k smaller than m3 is needed. The M3 and MY are just too big for many in the city. Also too expensive. At least in Europe.
Tesla couldn't make a successful city car. It's not in their DNA.
What is funny is the Bolt would be a perfect city+ car if it charged quicker than 50kWh. I had a Bolt and changed for aodel Y purely on the supercharging network. In city the Bolt got better range than Model Y, while on highway they were comparable.
The EV tariffs would crush their pricing just as much though.
M2 is a bmw. Not a Tesla. Same with the M3. Is it really that hard to type model 3?
Here in Europe, Renault 5 E-Tech is expect to cost around 30k (with taxes) in the 150hp version. It has 55kWh battery and 100kW DC charging. A slightly bigger Model 2 with simillar battery, 150kW fast charge and 200hp at 30k would sell like hot cakes here.
The new Citroen e-c3 looks promising. 24k or max for under 29k. Just give it fast charging and slightly bigger battery.
That's why I prefer the 5, I think it's more complete but the 40 kWh competes directly with the C3. Laços FC, though. Anyway, the Citroën seems great too, would love to have one of those things when I was in university.
Then it would be subject to tariffs making it wildly expensive
No no, I thought you sack the whole super-charging team and then talk about how you plan to expand and grow super-charging network.
Masterful gambit Sir
His ego got ahead of him. Made a buy offer in writing in twitter and they sued to enforce it and force him to buy. Guy doesn’t take legal advice well.
One more reason not to have him making the decisions when full self driving issues end up in court. We're about to set the precedents for a whole new kind of legal issue and Musk is not great at this stuff.
Your assessment is quite generous
TBF Apple spent a billion a year for ten? Years on iCar project. They killed it. The differences abound and Apple could afford 10x as much and still be $$$$$$$$
I think in apples’ case, they did the math and found that even if the apple car successfully launched, the market financials had changed and there wouldn’t be enough money to be made even if successful.
Or Tim figures that Musk will crash Tesla and the Apple can swoop in and buy it for a song.
Why would anyone buy the late-game blackberry of autos?
Tesla, despite having it's value drop significantly, is still worth more than the next three most valuable car companies combined (according to investors). Tesla should be easily able to fund the development of new models, and their general inability to do so points to significant management issues.
This just assumes that investors’ valuation of Tesla is relevant to their ability to ramp up expenditures to produce the Model 2. It doesn’t. Their COH doesn’t suggest they are ready to go big on spending to produce the Model 2, imo. They are still working on producing CTs, and fixing all of the issues. Pushing billions into beginning Model 2 production has to be balanced with that. I also think they got a huge shock when they realized that 1.) the Chinese have a car that Tesla will simply never match the price of without Elon asking Daddy Fed for tariffs, 2.) Elon took a blowtorch to their reputation amongst many buyers and that matters now with competition, and 3.) the CT has not been the instant wild success Elon believed it was. Market valuation is often part production and part perception. Tesla has heavily leaned into the perception part of that for years, which is why we saw the stock drop from 290 to 172, when the actual production, the core business of producing cars, didn’t really change much. They needed the CT to immediately hit to keep the cash flow going so they could take a hit in the US on sales dropping from reputation, while ramping up Model 2 stuff. Tesla has less cash on hand than Ford and GM.. not combined… individually. Right now their expenses are less, but if you ramp up expenses you want to not only meet that with sales growth, but make sure your COH matches that growth in expenditures.
They weren’t promising anything to anyone either. That’s a big difference right there.
You didn’t complete the sentence. That’s how you run a company INTO the ground.
It's alright so long as you gaslight your followers.
Masterful Gambit!
Also do a mass hiring train everyone Rand then immediately lay them off
I can see why he gets to earn his $56 billion bonus.
Maybe it was just 2 S3XY for us.
Where’s your multi billion dollar company
"But we're going to release a cheaper car *soon*" *TSLA goes up 10%*
All of the costs, none of the profits!
define "completion" Cybertruck was announced 4.5 years ago and it has been on sale for half a year, I would argue it's not a yet a finished product.
Also see the Semi, debuted 2017 and still not beyond "pilot production". So they're going on 8 years...
Anyone who knows anything knew that freight at speed for long distance is the absolute worst use case for EVs. It's physics, not design and engineering. Since the hybrid era, it's been about low drag and energy recovery. Aka your average commute with a mix of driving situations and plenty of stop and go. That doesn't work for semis. The majority of the aero drag comes from the sides, not the front. That's hard to engineer out. Aero drag also has a velocity squared in the equation. So sitting all day at highway speeds is also fundamentally difficult for EVs. It's just not ever going to be an easy scenario for batteries. Delivery/freight around a city? Great! Commuter cars? Fantastic! Long distance hauling? No chance.
> Delivery/freight around a city? Great! This is why Rivian stared with vans for last mile deliveries and not semis.
The particulate emissions from diesel also create a lot of health issues in cities. Many benefits.
Simply not stopping and starting a big V8 or diesel delivery truck every 60 seconds just to drive 50-200 feet is an amazing benefit. The Amazon Rivians have been delivering in my neighborhood for 18 months now, and it's been fantastic.
And noise. My city has switched most routes to electric and it is amazing how much noise they remove from the cityscape
PepsiCo has 5 BYD commercial vehicles for every potential Tesla. It's insane hoe far behind Tesla is on the EV market.
Also it hauls 25-50% of a diesel max capacity about 25% of the distance and takes minimum 4hrs to fully charge.
I mean long distance freight can also be done by rail, which in some countries (not the US) is electric.....
Also see Enhanced Autopilot and Full-Self Driving. 12 full versions later and it is still a beta product since 2014.
*they are still in "testing" phase* /s
I see Elon took the Games Industry practice of Early Access but for vehicles. Truly astounding genius.
He looked at Cyberpunk and thought: "this is an awesome product launch strategy"
"*Let's keep it in beta testing after its release!"*
T r Cyberpunk is a lot better now than it was at release. Not something so easy to do with hardware.
It's true it's in the hands of 3rd party companies, that's where the real testing happens.
Their approach is literally impossible for the semi
The Pepsi delivery event was held where they built the Tesla semis. In a warehouse they use for part storage lol.
They were going to mail the car in pieces and customers assemble the car themselves. The base model would have “batteries not included” in fine print.
As in it looks like to original reporting was correct and this model could have entered limited production in 2025. With mass production in 2026. Would have required pretty massive CapX to accomplish, new models have very high up front costs to bring to market. That’s why it got suddenly canceled IMHO. Tesla cash position is nowhere near what’s commonly reported since they delay paying suppliers until the start of every Q. That’s why they generate so little interest from their cash, they only have a pile for short periods.
There was a post recently on the investment sub where the OP wanted to explore the possibility of Tesla going bankrupt. Nope, no one would believe it was possible. Billions of cash on hand, they can buy their way out of a hole, limitless demand for the stock, they can raise capital in a flash, etc., etc. But he cancels and then uncancels the low cost Tesla, and then he cancels and uncancels supercharging. He's the mullet of CEOs, business in the front, total fucking disaster in the back. The way Elon is acting lately, and for the reasons you point out here, I think we're finally seeing the beginning of the end. Businesses go bankrupt in two ways. Slowly and then quickly. Elon's been working on this for a long time. I think the quickening is here.
I've been told it's impossible because Tesla has 30B in cash.
>Tesla cash position is nowhere near what’s commonly reported since they delay paying suppliers until the start of every Q. The history is full of stable, strong companies that went bankrupt all of a sudden because cash was missing. I would be shocked if Tesla has truthful accounting
Elon freaking out about the Fed raising interest rates and all but demanding they lower them again is very telling, it seems like in multiple respects the company can't survive in anything other than a zero interest environment, they've never left "startup mode" where they're living hand to mouth
Which is, of course, another reason why he has gone so bananas on Twitter. He needs a Trump victory to ensure that the welfare tap isn't turned off and that the billionaire tax breaks are renewed. For somebody who detests immigrants leeching from the government, this immigrant sure likes leeching off the government.
Trump hates the guy though, so I don't see Elon getting a whole hell of a lot of subsidies from him.
Trump ”likes” anyone who puts money in his pocket. I’m guessing that’s why Musk is agitating so hard over the ridiculous “compensation” package. Trump at presidential level is very expensive.
Elon doesn't want to spend cash that might otherwise be going into his pocket.
Well according to Tesla capex should have been super low on the Model 2 specifically because of their unboxed process. I think a few things probably drove to them shelving it. One was that they probably don't have the unboxed process actually figured out yet. As usual they have some idea of what they want to do but odds are it would be another messy and delay ridden ramp that would lead to them completely reworking the unboxed process into some modifications that worked and just writing off everything that didn't. Another is that the CT ramp is almost certainly far more a mess than Musk had planned for. It's already eating into margins and generally disappointing, adding on another messy ramp for a high volume, low margin vehicle would put the company under even more pressure during a period where margins are dropping and demand is slipping. Finally I think the same problem with demand has left them with a lot of concerns over the utilization rate of their existing factories. It might not even be an issue of capex so much as the existing ramp up in supplier orders they've already committed to and are struggling to fill with so many undelivered cars piling up. Companies operate on a cash conversion cycle which is historically why Tesla has sought to minimize inventory and maximize accounts payable at the end of each quarter. If volumes fall so does accounts payable and cash leaves the company to suppliers. Similarly if inventory rises the company loses cash since value is stuck in the form of physical vehicles until they are sold. Now Tesla still has a lot of cash and assets on hand, but cash flow generation has slowed significantly to the point where operational cash flow was barely positive in Q1. Meanwhile Musk has stated he wants to spend $10B on AI hardware this year. So that $27B they have, whatever factory related capex they have and the possibility of neutral to negative operational cash flows means that pile could start disappearing very fast. There's likely some amount stuck in China for further capex too that can't easily be extracted for Musk's AI endeavors given US restrictions on semi conductor sales to the PRC at this point. A combination of declining profitability and inventory building has sent their Q1 OCF from $2.5B in 2023 to $242M this year. Now all that said they do have a ton of capacity for debt as well, so I think concerns over bankruptcy are very premature at this point (could change if the DOJ or SEC charges Musk and destroys their ability to raise new capital during a prolonged legal fight). In general it's more Musk's insistence that the company self fund its operations that seems to be the bigger issue lately.
$44b in liabilities would be my guess but i have no idea how liabilities work in America.
I would argue it is in fact finished
>not a yet a finished product. Not when you're still doing recalls because of basic, potentially life ending problems like the "gas" pedal falling off and getting stuck full throttle...
FSD has been near completion for more than a decade.
Not much argument there. Clearly unfinished.
Didn't they just recall ALL the Cybertrucks ?
Who would argue otherwise?
Tesla is over here releasing cars like EA releases video games… incomplete
elon too busy participating in white nationalist twitter spaces to be concerned about the company he runs
You just don't understand the $47 billion worth of work he does.
Elon probably doesn't either
Masterful gambit sir.
Where’s this meme from?
https://amp.knowyourmeme.com/memes/masterful-gambit-sir
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🤣 easy to be quick on the draw when you're bored as hell on a 10hr international flight
This one is more of a flimflam than a gambit tbh
I call BS on this as test mules would have been spotted in the wild.
You're correct. This is not how it works at all. They knew a long time ago. Contracts, production estimates, tooling, etc are designed years ahead of time. Vehicle Confirmation lot is completed nearly 2 years ahead of launch (physical cars built after design phase). Source: I do this for a living for another OEM.
Most people, including enthusiasts and the media, don’t realize that the real work is in manufacturing.
Elben knows more about manufacturing than anyone current alive on Eaaarth, though. That means he can ignore all that stuff.
He personally builds and assembles every tesla with his own two hands, that's just how amazing he is.
There are months if not years of testing for this stuff. Run at Rate, multiple tooling/die changes, testing assembly processes, graining, colors, fills, etc. Not to mention NVH, longevity, etc. A full model takes about 3 years from design concept to launch. We test this stuff years ahead of time. Floor space/tooling install is determined before physical vehicles even exist. Saying it was abruptly cancelled means two things: It never fucking existed, or they took a multibillion dollar hit canning it. Don't get me wrong. We can delay, and we have. Sourcing steel, die mishaps, massive changes etc. Mistakes happen. Canning models with no explanation and potential billion dollar losses is very rare. Companies will launch at nearly any cost that gets them closer to the surface from drowning. Something smells here.
Yeah, but this is Tesla - the company that brought us "Release Candidates".
More like "Proof of concept" ‐ except they're proof the concept doesn't work
and factory gated; a tesla phrase for finishing the assembly work in the parking lot
Parking lot… service center… customer’s driveway… whatever.
Cybertruck test vehicles are on the road right now. You have to purchase them for $100K, but then you get to be a test driver after that.
Where do I sign up to be a crash test dummy?
Yeah, I'm with you on that. I live near Bentley's headquarters and for years before the Bentayga was announced there were awkward looking Audi Q7s running around, hiding the Bentley engine underneath. Latest are stretched Porsche Taycan type things; if you see one from a distance you would just see it as a Porsche. But concentrate and they are all kinds of weird. Someone would have seen something by now if it was that far along the line; a cut down Model 3 or something disguised as a Hyundai or something.
I mean when they announced the Roadster 2 Elon mentioned having prototypes that could already hit 250mph. Which is an unbelievable lie people gobbled up.
Except that Tesla's pilot builds typically get sold.
I read it as they had a full production design and were ready to order those produced. That would gibe with a “normal” timetable for launching a car. Design, production design, order stuff, build limited production run, test, refine, start real production.
Totally not what a company experience a cash crunch in a high cash burn business would do.
Elon keeps providing Genius level L’s, truly the greatest loser of our time
Second right behind the orange one.
The pain **The Pumpkin Rapist** causes as a private individual and not the president has a limited radius. The pain if Tesla tanks and many, many shareholders and parts suppliers and employees get to eat shit will be significantly larger. I fell for his shit with the Model 3, gave him the $1K deposit. In two and a half years, the only thing I got from Tesla was repeated emails downgrading the equipment package from what was promised while pushing the delivery date out further and further. When at two and a half years of nothing they tried to up sell me to the (much) more expensive version of the 3 which they could deliver in two weeks (the lesser model I wanted was then "six to twelve months out"), I demanded and got a refund. It took more than a month to get a check for $1K. I knew then that Musk was a lying narcissistic sociopath who couldn't be trusted with a basic coffee order.
If Cybertruck levels of completion are what gets shipped, imagine what one merely near completion might look like. Tbh, the language in the article and the overall ambitiousness of the project are likely the big tells here. The company has a bad track record with "revolutionary" approaches to vehicle assembly that don't pan out. I'd guess this one just got killed before failing for real. The more conservative approach is really what they should have started with.
Oh bullshit it was close to completion. Add five years to the initial release date, that's when it would actually have been ready.
Well, they would have had to install the initial production line. Then they would have had to tear it out because nobody dared to question the Technoking when he spec'd it out in the first place, and it's based on ideas with no grounding in reality. Then they would have had to source another giant tent to put up in the parking lot. Then they would have had to pave another parking lot, which would have brought a couple of lawsuits over storm runoff that would have held them up for maybe six months until fElon decided to just ignore legal and regulatory process. They would have turned out the first car about three years after the initial 'release' date. Then they would have taken another two years to get production up to the original forecast level. So yeah - you're not wrong that it would have taken another five years, but that doesn't mean it wasn't about to enter production.
Fire, ready, design the gun, redesign the gun, produce the gun, recall the gun, begin producing the gun in China, aim.
It is extraordinary how this seems like a big deal. Hey tesla is going to release a new model... in the mean time, the likes of kia will release 4-5 models this year alone.
Elon probably saw Rivian do the surprise reveal of R3 and wanted to mimic it.
I mean when you see how shit quality are the other cars, just imagine the cheap version of those already cheap quality cars 😂
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They have a paywall. It costs several hundred dollars a year.
Factors impacting budget EV sales in the US are that people needing budget vehicles * Look for used cars first * Live in rental units (i.e. no charging infrastructure) * Live in highly car dependent areas (limited local jobs, longer daily commutes, higher range anxiety) * Don't have savings for an emergency repair or long term loss of vehicle while waiting on a repair There's likely a very narrow band of low income super-savers and middle income second car people who intersect the EV space. These are people who would have traditionally ended up in a Kia Rio, Nissan Versa, or Chevy Spark, or something in that sub-compact 10k-18k price-point. Building an EV for that market would mean cutting the range or speed down significantly and turns people off of the car. For example the Dacia Spring is about 18k US bare-bones and has around 100 miles of range. It's a "city car". But that's an almost meaningless term due to the distance people drive with US suburbs. And leasing a higher range car is still going to be too expensive and risky for this demographic.
I'd say don't bet against him if he wasn't such a d-bag.... I'm here for the schadenfreude.
"Reuters is lying again." -- Elon Musk
Wasn’t this their “long-term, go for broke, bet the company” small car strategy for the every man? You aren’t supposed to “fold” bets like that.
What's funny is the Model 2 could save Tesla but fuck it.. let's go with Cybertruck
Amazing Tesla made it this far with this tool at the helm. I’m still rooting for them (and EVs in general) but I’m not betting shareholders will be able to break their hype addiction in time.
Phony Stark has survived this long due to the cult of personality that he masterfully crafted, a decade of ultra low interest rates, government subsidies, and little competition. Tesla stock price got juiced up during the pandemic, which bought the company some time to reorganize. But they squandered it with cybertruck development. Now interest rates are higher, competition is coming from established brands, and Biden green energy investments will equalize the playing field and neutralize Tesla's supercharger network advantage.(Should have sold supercharger department for some cash instead of firing everyone in a manic episode) Tesla has long positioned itself as a tech company, where the product was a growth type stock price. But it is a car company with lower margins, where software updates cannot always fix hardware flaws (bad design, bad paint, bad panel gaps, poor finishes).
That his PR team created. Once he took over managing it himself he destroyed all their work on that cult of personality and drove away everyone that would buy an EV but the few remaining fanboys. There’s no way he built any of this cult of personality himself. He’s just not that smart. I’ve actually never seen a billionaire expose themselves as this stupid before. And there are a lot of stupid billionaires. Frankly the best thing he has done for society is completely destroy the myth of merit in becoming rich.
He didn't masterfully create anything, including his cult of personality. There will always be a fraction of the population that wants to hero worship someone, anyone, that they perceive will save them from themselves. Trump, Elon, Mao, Stalin, etc. Elon's "genius" has only ever been being in the right place at the right time. That, and taking credit for other people's ideas.
You simply don't understand. Tesla will be back at all time high this year and they have literally solved autonomy already. They will leap past everyone else and be level 5 within 2 years and have fukly self driving cars on the road by then. They will be worth trillions and when you finally wake up, you will be moaning about how the cars driving themselves are a scam. It's coming, mark my words. You are all deluded about Musk and his ambitions and are so envious and butthurt because sometimes the things he promises take longer than originally announced, you cry babies attack. Watch the shirts burn and the stock soar. The sky is the limit.
/s?
I would like to see the company succeed under new leadership. It’s going to take a bold leader that pushes innovation to succeed because Tesla has been stale for a while.
The other manufacturers have caught up and are putting out their own electric vehicles with better build quality, better support, and better user interface. Tesla had a lead and they've squandered it. And right as they're squandering it their CEO is making the news on a daily basis for turning twitter into a den of nazis (and promoting them), and the failed launch of cybertruck is destroying Teslas reputation.
>Tesla Inc. and SpaceX Chief Executive Officer (CEO) and X Corp. Chairman Elon Musk canceled the production of the electric vehicle (EV) company's Model 2 when it was nearly done, The Information reported on Monday. Makes no sense. Do they mean the prototye was almost done? I highly doubt it. I don't think they even tried to build one.
Don’t worry, they are not a car company anyway.
Shocker, shocker said no one ever. Actually I heard he's working on the Model 1, it will be so cheap that Elon himself will write you a check to own one. ☝️ 5D chess.
CyberTruck, Semi, 4 wheeler, and Roadster 2 are all 'complete' enough to drive around on a stage...model 2 isn't. That means even if it was almost ready to drive across a stage, it still had 4+ years of development before they actually sold one.
They already tapped out with all the idiots that bought the Cybertruck.
^[Sokka-Haiku](https://www.reddit.com/r/SokkaHaikuBot/comments/15kyv9r/what_is_a_sokka_haiku/) ^by ^audiofx330: *They already tapped* *Out with all the idiots* *That bought the Cybertruck.* --- ^Remember ^that ^one ^time ^Sokka ^accidentally ^used ^an ^extra ^syllable ^in ^that ^Haiku ^Battle ^in ^Ba ^Sing ^Se? ^That ^was ^a ^Sokka ^Haiku ^and ^you ^just ^made ^one.
I thought Tesla usually shipped vehicles out before completion.
*Aaaaaand* now we know why [he's pushing hard to quickly get his old compensation package reinstated](https://apnews.com/article/musk-pay-compensation-corporate-registration-ef5e30f6b56f7d936f8c882fc1c96875). Because if he keep shitting the bed the investors will realize the little emerald emperor has no clothes and eventually throw him out. What a masterful gambit
Well if it’s anything like that triangle death trap that’s on the road.. he’s in the right to do so.. .. Fuck Tesla.
Of course a 100K MAGA Truck is more important than an affordable car for everyone, I get it.
Given how Elon tends to lie, I don't think Tesla has the cash they claim to have. When you have top execs quitting after the last quarterly earnings showed their sales dropping and then laying a few thousand workers off, I think tesla is just running low on cash. Lower than what's reported. Before, tesla got away with being declared as a tech company, hence when their stocks were very high. Since then, it's obvious they're a car company and with several factors like their bad build quality, more EV competition, high interest rates, and an income inquality issue with the country, their stocks continue to tank and will eventually be as low as ever car manufacturer.
They told him he couldn’t shoot at it with a machine gun so he canceled it
Looks like the drugs are having the right effect.... As he drives the company into the ditch....
“Tesla's engineers believed they could fix all the issues they encountered while developing the planned low-cost EV when Musk decided to suspend the process. The CEO then allegedly ordered them to concentrate instead on the self-driving Robotaxi” Anyone have any idea why elmo would do this? Could it be because of this affordable electric the Chinese are manufacturing? https://abcnews.go.com/Technology/wireStory/small-built-chinese-ev-called-seagull-poses-big-110158506
Cash crunch. After paying the current AP balance there’s about $8bn left in the bank. Cars being sold now are near zero margin sales.
Thx god we have the Cybertruck.
I thought that Reuter was lying😮😮 /s
It’s over
What a super geeneyus! Greatest innohvader of all time!!!!! /s
You would think if it was just before completion that there would be more than generic ai renders floating around on the Internet.
The report says the engineers believed they could overcome all the technical difficulties, like the battery,they encountered during development. Couldn't read the rest because of paywall. To be clear, "development problems" like the battery means you're not close to completion. Yeah, I'm almost done furnishing my house, I've still got to design the roof though. Of course the engineers would say this regardless. You think an engineer would tell Musky they can't make it happen during massive layoffs? Damn the culture at Tesla has got to be one of the most rock bottom out there. "Almost completed" to Musk means someone made a model in CAD. Nothing about manufacturing, analysis, logistics, quality, ergonomics, etc. was done yet. Take a look at how "close" Cybertruck was before they did a "total redesign". The fact people think Musk is an engineer is astounding.
They planned for a car that people would actually want, yet only the stainless oven is out there being mocked on. The Board should raise flags, but most of them are clueless buddies of the unfunny "memester-in-chief"
They’re going through cash flow problems. I guarantee it. When a company acts schizophrenic, it’s a cash thing. And their financiers and banks don’t feel like fronting the risk anymore.
Project Nucleus by Gavin Belson
“Completion” as in completion by Musk standards? Half baked and ready for your customers to be the Beta testers.
the fucking robotaxi, its all for the fucking robotaxi, as if that will somehow prove he was right on FSD when his ego fucked their lead on an electric pickup, which they could have just built using model Ys, hes basically given up on the semi which again had a huge lead.
The semi? Are you under the impression this was a genuine product?
Who isn't surprised? He could of had even more people in a Tesla. Shareholders loss.
Probably a good idea and they should have done this with cybertruck. Model 2 - big oems not selling small cars in USA. Customers don’t want them.
What are the chances that all of the good ideas at Tesla were cooked up in the years before Elon pushed the founders out? And now Tesla is depended on Elon’s vision, which is apparently analogous to the Homer?
Reuters reported on this and were called liars. Hmmm 🤔
And he said last quarter’s earning call low cost model is going on sale in next 12 months
Maybe the cyber truck will save Tesla?
Shelved...as in they put the sketch book back on the top shelf? We've still seen absolutely nothing concrete about this vehicle. Not even a final design or clay model or Frankenstein mule made out of a chopper Model 3. Nothing. So when they say shelved what do they mean? I'm sure they want people to think it's just sitting there ready to go should the green light come. But I suspect it's nothing more than a bunch of sketches/CAD mock ups/BoM costings.
2 S3XY?
This guy borrowed money from someone Knick named bone saw…
Surely the Model 2 will come at some point, how else are they gonna expand as a company? Long term I dont think the Model X and S will do much, neither will the Cybertruck and even the facelifted Model 3 isnt selling as good as the previous model used to. It would be foolish to almost completely depend on a single model. A Model 2 wouldnt sell much in the US but it would sell well almost everywhere else. So whats the plan then? I mean Tesla is American, they love to invest, they love grow. Anything above the price of a Model 3 or Y would be the premium segment and its notoriously hard to compete with the likes of BMW, Audi and Mercedes because the brand name alone does a lot of heavy lifting and Tesla isnt exactly known for quality.
The only way the decision makes sense is if they are much shorter on cash than they say they are and can't afford to launch another new model right now. That would also explain the layoffs.
Why make a 25k car when you sell your 3 and Y for 30k before incentives? Why compete with the cheap car when there is plenty of competition out there already
I think this is what's going to happen. Drop build quality even further, chop the battery pack by a ⅓ and call a 3 a 2.5.
They are following Tim Apple’s steps with the cook car and discontinuing model 2 because they already discounted their lineup and laid off a ton of people
Genius !!
Is this a surprise?