Up in smoke: On Wednesday, Tesla Motors Inc (NASDAQ:TSLA) declined more than 14% to $151.16 per share after the company reported its third quarter financial performance. The news of third Model S fire may drive stock lower.
We Don't Need No Flaming Sparky Cars
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Recent Comments
- Right Honorable Terry Tory: Tesla is subsidized and promoted like wind mills and solar read more
- north_of_60: Good... some of you understand that technology advances and problems read more
- robw: No problem because no one was hurt and if the read more
- Douglas2: Pinto -- actual fires known to NHTSA = 38, at read more
- Joe: How many Pintos have you seen on the road lately read more
- C_Miner: Dan, you're still thinking too close to the mass market read more
- stradivarious: Duh, all gasoline powered vehicles weren't blowing up. Well, except read more
- north_of_60: When Pintos started blowing up why didn't they scrap the read more
- eastern paul: Put a v-8 in a Tesla, and I'm in!! Maybe read more
- Al_in_Ottawa: "At the core of pretty much every major technological boom read more










Yeah, these guys don't know what they're doing. I mean they sold 21,500 Model S cars in 2013 alone. 3 fires is clearly indicative of a larger problem and they will soon be out of business. Do you desperately resist change merely because you fear progress of any kind, or is it that you're just not very smart? Or maybe both?
If "progress" means that your car has a 1/7000 chance of exploding then call me a progressive.
ps. I think Tesla Motors is doing a fine job. The groupthink aisle is on your side of the store.
So in your view John you have no problem with middle class taxpayers subsidizing the cost of luxury cars for the wealthy?
Now, now....let's not be too hard oh John. After all, he is entitled to his entitlements.
What a shit article. The stock declined because it was wildly overvalued after increasing 500% this year alone.
BC
Nice juxtaposition. John's head is exploding, thanks to that VERY inconvenient truth.
Or, maybe John thniks that that IS being progressive.
That's not what's happening. The government is giving Tesla money to help them radically innovate technology. The wealthy are also supporting this by purchasing the early versions of these vehicles. The tax credits they're getting are merely to encourage sales, and drive the technology.
At the core of pretty much every major technological boom we've ever had has been government funding. Read. Learn.
http://www.bloomberg.com/news/2013-06-19/who-created-the-iphone-apple-or-the-government-.html
If they want to help save the planet, and they're rich, should they have to be encouraged with subsidies?
Selling 21,500 cars in a given year is a sure recipe for bankruptcy. The Ford Edsel sold a total of 115,400 vehicles and it was considered a disaster. Ford lost, in 2013 dollars, over 2 Billion. Too bad they didn't enjoy a government subsidy. If so they would still be producing a vehicle no one wants.
Tesla is no more than an effete progressive's wet dream that failed.
A business will be successful by being appealing, AND BEING AFFORDABLE, to the masses, NOT just the elitist 'wealthy'.
That's the problem with your premise JJJohn. Governments give seed money to startups. Tesla is no longer a startup, but keeps getting graft from gubermint. That's NOT a successful business, that's one being being propped up.
If Tesla was selling these cars for $20k each, then its a success. As is, its just another "see, it works if you spend enough on it" toy.
Without gubermint funding, this is a failure, unaffordable, and not practical. Anybody see a miracle where these rollerskates will fall in price by two-thirds?
So how do the odds of your Tesla going up in smoke compare to the odds of your Gremlim or pickup with side-mounted tanks exploding?
Oh, and John, if it saves one child, it's worth it. Ban them for the children. Why do you hate the children?
John you do know that the electric car is not exactly cutting edge technology don't you. I'm not a technological troglodyte. I love innovation and invention with one caveat. The innovation or invention must be an improvement over the existing technology. So far what Tesla, Chev, Nissan, Toyota etc have to offer by way of electrics or hybrids is decidedly NOT an improvement. I have a whole range of cordless power tools that use lithium ion batteries and they work wonderfully but I still wouldn't want to make a January drive from Regina to Saskatoon in a lithium ion battery powered car.
I don't think that they were betting on always being a toy for the rich, Dan. Early adopters always pay more. Think of the cost of the first plasma screens, or LCD TVs, or LED TVs. They're a lot less now, but the earliest adopters paid through the nose for the privilege of getting something "better", sooner. Having high profile glitterati promoting a brand by wanted one (and smugly showing them off) is free advertising of a sort few companies can dream of for the eventual mass-market product.
I must confess ignorance on whether the brands that did the best with the early adopters went on to have good overall sales.
It would be really revealing to do a survey of Tesla owners, and discover what fraction of them own no other car. I suspect it would be a tiny minority.
The Tesla is a cool toy for the very wealthy, and as pointed out by someone on a previous thread, in the Bay area at least, it buys you the use of the diamond lanes, even if you are driving alone, so it enables the wealthy to cruise past the plebes. That's a direct subsidy in its own right.
I think the comparison with the Edsel is specious, because the Edsel was intended to be a mass-market car, just a notch up from Mercury. Ford needed to sell a lot of units to break even on it. The exotic car builders, say Porsche, Ferrari, and Lamborghini, make good money selling a much smaller volume because the per-unit profit is much higher. Tesla is more comparable to them in both price point and target market.
The Edsel, by the way, was not a bad car for its day. Aside from its sort of weird styling, it was a typical Ford product of the era, and solidly built. It had the misfortune of being an up-market car being introduced in a recessionary period, plus the stigma of the "love it or hate it" styling. I'm willing to bet many potential Edsel buyers used the styling as an excuse to move down-market and buy a cheaper car.
@C Miner: "....if it saves one child, it's worth it. Ban them for the children. Why do you hate the children?" It had to be said.
@Joe: First electric cars around 1880. More around the turn of the century. Big auto manufacturers experimented with electrics in the 90s. As you said, definitely not new technology. Motors and batteries today are clearly improved however.
The unspoken problem with electric cars: "Who will (or how to) pay for highway building and maintenance?" The progressive state of Oregon is already on the problem having in place a pilot test for charges by the mile. Expect more tax problem solving in the future.
Motor cycles are also going electric and suffering the same price differential as the Tesla (i.e., too expensive).
Correct me if I'm wrong. A lot of electricity in North America is produced by burning coal. In theory, a Ford Fusion that requires, say, 15 horsepower to maintain a steady 65 MPH, pollutes the air less than the same power that is required to recharge the battery of a Tesla from a coal fired power plant. as I'm not taking acceleration ands other factors into consideration.
I`ll take the Ford any day.
Correct me if I'm wrong. If I drive a Ford Fusion 400 miles at a steady 60 MPH, I require about 12 HP (Theoretical) to maintain that speed. The same energy is required by the Tesla, except that it has to be replaced in the battery via charger at the end of the trip.
Most electricity in N. America is derived from coal. I believe the Fusion will pollute the air less than the Tesla, given the toxins that are released from coal fired plants.
And I like the blond behind the counter at the Shell station.
toilet (jawknee)the electric car has been around for about 120 years (most of this eco green electric shit has also been around since kriste was a cowboy)and it is not there , and quite probably won't be there for another 50-100 years, and isn't needed, as ICE technology is still on the move. Now as to gov't pissing tax-payers bucks on this shit, not needed. Ford realized in 2005 that they were in trouble, and restructured their thinking as to engineering,. Today they are considered to be building the best ICE in the world, all without "corp. welfare", and that is how it's done. Now jonny my boy, why don't you take some classes on critical thinking, so's you quit sounding like a complete rectum every damn time you post!!!
John said "The government is giving Tesla money to help them radically innovate technology."
What exactly does "radically innovate technology" mean? What a meaningless statement.
There is no fundamental research involved in the Tesla *at all*. It is a an engineering *development* designed for the wealthy and the image conscious, and the bill for it is being footed in part by the average middle class taxpayer who will *never in their lifetime* be able to afford such an expensive vehicle.
I know Tesla owners, and I have had a ride in the car. From an engineering standpoint is an impressive machine. But behind that engineering is a reprehensible scam, and the chickens will come home to roost eventually.
By all means cheer on the Tesla if you think there is nothing wrong with taxpayers subsidizing the wealthy so they can by pretty toys.
...buy pretty toys.
There seems to be some misapprehension that electric vehicles are new. Au contra ire, forklift
trucks have been electrical as long as I have known about them. And they rarely blow up. Again,
electric trams, diesel-electric train locomotives etc. have been known and have been in wide
use for decades. So what's the big deal? Subsidies and probably kick-backs are the big deal.
Companies such as Solyndra are designed, not for any consumer use, but to move public monies
into private pockets.
Hydrocarbon fuels such as fuel oil, natural gas, and gasoline are made up of molecules that
combine carbon atoms and hydrogen atoms (duh - that is why they are called "hydrocarbons").
When they are burned, both the hydrogen and the carbon combine with oxygen to produce water
and CO2. Methane in natural gas has the highest ratio of hydrogen to carbon.
Coal is mainly carbon, so burning coal mainly gives you CO2, together with some other interesting
molecules. Hence burning coal will give you more CO2 per unit of energy than burning a
hydrocarbon fuel.
Yes, I am simplifying somewhat by not taking the energy necessary to break CC and CH bonds into
account.
C_M
You're premise is correct.
The practicality though, fails.
Buying a cutting edge LCD TV might cost you an extra $50 a month. Buying a Tesla, if you are making $50k a year, is impractical and stupid. Why pay $2000/mo for the privilege of a snob car? Can't afford it anyways. And there is no indication that these cars are about to become affordable.
Its a niche elitist car, paid for by the middle class (thru subsidies) for the benefit of the wealthy greenie class (Obama drones, etc)
"Subsidies and probably kick-backs are the big deal.
Companies such as Solyndra are designed, not for any consumer use, but to move public monies into private pockets."
John, that is exactly what it is all about. Crony capitalists and socialist politicians fleecing the proletariat as usual.
P.S. Why does everybody let the socialist troll get your goats?
Pretty obvious tesla will be gone soon. Number one, the market for 100 K cars is tiny; bmw and Mercedes only sell a small number of luxury cars every year. Lets cap tesla at 20000 cars or less a year. That is as good as they will ever do, yet the market cap is similar to FoMoCo which sells hundreds of thousands of cars in the same year. Tesla is using strange accounting instead of GAAP, which is a big warning sign. Enron didn't either.
Clearly tesla is a bubble. But hey not my money involved.
"At the core of pretty much every major technological boom we've ever had has been government funding."
I tell you what John, I will give you a dollar to match every government dollar that Alexander Graham Bell, Thomas Edison, Henry Ford, the Wright Brothers, Nicholas Tesla and Henry Bessemer received to create their products. I therefore owe you a total of zero, nada, zilch, sweet fanny atoms.
The iPhone while a neat gadget is not revolutionary technology nor is the electric car which both Henry Ford and Thomas Edison agreed is inferior to gasoline fuelled cars around 1916.
PS Methane is CH4, propane is C3H8, while coal can vary between 60 to >90% carbon.
Put a v-8 in a Tesla, and I'm in!!
Maybe even a diesel.
Otherwise take a long walk.......... on a short pier...
When Pintos started blowing up why didn't they scrap the whole idea of gasoline powered vehicles?
Duh, all gasoline powered vehicles weren't blowing up. Well, except when the MSM are involved...
Dan, you're still thinking too close to the mass market timing. The first plasma screen I remember seeing was over $10,000. It was a couple of years before I met someone who had one in his house, it was about a 50". It far bigger than anything with a cathode ray tube that I had seen. He was proud of the fact that it cost as much as a small car, and that no-one else in town had one. He enjoyed the snob appeal, he was seeing things in a way that we plebes couldn't.
The difference between a first-to-market and a high-end in an established market isn't what I was referring to. That said, I have no way of knowing if Tesla actually are looking at making an "everyday man" vehicle. Toyota sure does, but Astin-Martin doesn't (so a luxury line doesn't necessarily mean an economy line).
How many Pintos have you seen on the road lately North? Come to think of it I haven't seen many Corvairs either. Ever wonder why north? Could it be because those two models had a fatal flaw in them? I wonder what percentage of Pintos caught fire and what percentage of Corvairs split in half before they went out of production? Do you suppose a similar percentage of of Teslas have burned up yet? As a corollary I wonder if Tesla is trying to do anything about their flaming cars or if they are like GM prior to Ralf Nader.
Pinto -- actual fires known to NHTSA = 38, at a time when nearly 1/50 cars on the road was a Pinto.
GM '73 - '97 Pickups -- just try to find an example of a fire other than in a collision that would have been likely fatal anyway, or that wasn't caused by TV news program makers remotely detonating incendiaries.
Even the Gremlin had a rate of fires -- as a result of collision, not as a result of just sitting there -- that was a tiny tiny fraction of this.
No problem because no one was hurt and if the stock prices fall to badly the black sugar daddy will just hand over hundreds of millions more of borrowed money to make Tesla's pain go away. I repeat, no problem, everything is good, just say the matntra to yourself, "clean electricity is better then dirty old gasoline no matter what it costs". Oooops, is that another plume of smoke and flame at the edge of the road, "clean electricity is............"
Good... some of you understand that technology advances and problems are overcome. The same will happen with electric cars. The technology is valid, there is an urban market niche for electric vehicles.
The problem is government meddling.
Try to understand the big picture beyond a silly myopic electric car hate-on
Tesla is subsidized and promoted like wind mills and solar panels by corrupt governments. OPEC/Saudi Arabia are the biggest guys behind the curtain. An electric car is not because we are running out of oil, it's because evil fossil fuel causes globull climb ape changies and you cannot frack, pump, pipeline anything, anywhere (Other than from OPEC sources of course) don't you know? Keeps abundant oil prices up which feeds more tax per gallon to govment.
Governments know they are pumping cash to a loser right now, it's one of the costs of their propaganda.
Follow the money pipeline ur, I mean the money trail. A trail sounds a lot cleaner than a pipeline but believe me that money is much dirtier than the "tar" sands.
Watch for Australia's new massive oil discovery soon to be declared "awful and unnaceptable" for some reason or another although they will have the Asians markets mostly and are better positioned than Canada in that respect. The USA is the most corrupt cesspool in the world right now.