Toys4RJill

Lol. Apple makes phones and computers. Car manufacturers as a whole will always outperform Apple at making cars.

EZZ

That's short sighted. Apple didn't make smartphones and they dominated the smartphone market in a few years. My point is that they have the financial firepower to solve many issues for Tesla very quickly. Gigantic cash hoards can make many problems go away.

Toys4RJill

From so many of your posts, you make it sound like Tesla has no issues. Apple has no idea how to make a car, not do they have any expertise in manufacturing cars. And why would they want to? The entire car industry is shrinking. An economic downturn is on its way. There is a dumb trade war. Apple is entering the car market is not a smart move.

mmarshall

Although Jill is off somewhat about there being a trade war, I agree with her that Apple is not a position to try and tell Tesla how to produce EVs. Apple may have money, but history has shown that the more money Tesla gets, the more it squanders. The only reason they are still afloat (and the main reason I started this thread) is that investors keep replacing what the company constantly loses.

EZZ

My point has always been that Tesla isn't going bankrupt anytime soon. They will evetuallly solve issues and have a sustainable business but imagine if they had the financial resources of a parent company like Apple. Apple doesn't have to build cars, that's what Tesla is for but without its current financial constraints, you hire faster, build more aggressively, market better, and leverage your financial size to bully your way into the market. Apple is one of the most ruthless, powerful companies in the planet. You don't get to a trillion dollar value by being nice. They have always been interested in EVs and self driving cars. Look up project titan for Apple. They had many hires to try and get it off the ground. With Tesla, Apple can actually get there so analysts have speculated that this acquisition could happen.

LeX2K

The so called experts have been wrong about Tesla in just about every possible way I don't take them seriously.

EZZ

It's only speculation but I would never discount companies like Apple and Amazon if they want to really do something. Apple at one point was so cash rich they could have written a check to buy Toyota with cash. Hahaha. These companies literally have no limit on what they can afford. Scary.

bitkahuna

iTrader: (20)

do tell what they have squandered money on and your sources.

I do agree they have spread themselves too thin with the solar shingles and home powerwalls.

If a stock is publicly traded, a company makes no ‘new’ money unless it issues more stock. Now tesla did that once not too long ago i believe so that did raise capital, but ‘keep replacing what the company constantly loses’ is completely inaccurate.

you do realize they’ve built one of the biggest factories on earth in nevada and now another coming online in china? Building out the charger network, the cars themselves, chips and software, is some of where all that money goes. But what they’ve accomplished is astonishing, especially in light of all the doom and gloom and naysayers like you.

Tesla may fail, although as time goes on that’s increasingly unlikely, and maybe through no fault of their own, like a recession, but they’ve changed the car game forever.

mmarshall

I've said a number of times, here on Car Chat, that their system of company-ownership of all dealer sales/service/franchise facilities has never worked, in the long run, for any auto manufacturer before, and probably will not for Tesla, either. As to why they have not folded up to now, that is why I posted the video....though I admit it is (now) somewhat dated, it still gives a good explanation. But it is probably not going to work in the long run, because they are basically being propped up by investors. If the economy goes sour, investors will likely start turning off the car flow.

LeX2K

Are you saying an independent dealership network will make Tesla profitable?

SW17LS

LOTS of companies exist where they loose money (a lot of money) and live off investor capital. Investors invest because of the promise of what may come in the future. I work for one of these such companies.

Amazon, Tesla, Uber, Lyft, on and on and on the list goes. "Bankrupt" means an entity can't meet their obligations, just because the company doesnt make a profit doesnt mean it's bankrupt.

Tesla isn't going anywhere.

mmarshall

It would probably make it a lot less UN-profitable....that's simple common sense. But, to some extent, it's a moot point as long as outside investors keep those dollars flowing.

peteharvey

Tesla is so silly to give the Chinese free technology - only for the Chinese to then kill Tesla.
It's like shooting yourself in the foot.

That's why for many years, Lexus refused to assemble in China - for fear of having to handover free Lexus technology to China.
Now, Lexus is giving hybrid technology to China, but how many years does hybrid technology have left?

It will be very interesting to see what happens if a recession kicks in, and investors stop pouring money into Tesla.

mmarshall

Absolutely......although, for several reasons, I don't see a significant recession happening anytime soon.

And as for the Chinese, technology or not, they are (finally) losing the trade war.

RNM GS3

Tesla needs new products ASAP.

Model S is been out 7yrs now.
Model 3 is not selling at same pace as before.
Model X is too expensive to generate significant volume.
Model Y is not that impressive- just a raised Model 3.

I hope ICE cars live on for many more decades.

Nobody still has solved how to charge Millions of cars in 5minutes or less.
Until that happens EVs will be a niche.