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      07-10-2017, 01:06 AM   #7
Karmic Man
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Originally Posted by m34m View Post
What's wrong with Tesla management? They generate no free cash flow or profit. Meanwhile their market cap is an unjustified $51 billion. They delivered 76 thousand vehicles in 2016. In contrast a company like Ford generated nearly $13 Billion in free cash flow and a net profit of almost $5 billion. In 2016 they delivered 6 MILLION vehicles. Their market cap? $45 billion. Tesla is worth more than Ford? Something is wrong here.

How can they do better? See above. Also perhaps they should prove they have a viable product that can sustain sales without government incentives.
You just stated the effects but did not offer any view on the cause. Anyone can see those abysmal figures but what are the figures telling us?

Elon Musk can't force people to buy EVs (Government bodies around the World are doing that for him...). Tesla's products are good but the uptake of EVs are much much slower than expected. Development cost is very high.

In my opinion if Tesla crashed out, other car manufacturers will re-adjust their EV positioning (not abandoned, not at all, just adjustment of allocation of resource towards EV) because it is obvious that one cannot remain profitable when their product range is purely vehicles running on Electricity. One has to also rely on other platforms running on hybrid, gasoline, alternative fuel (Ethanol, hydrogen..etc) to gain a greater market share (for both cash flow and economy of scale reasons) to survive in the next 10-20 years.

Last edited by Karmic Man; 07-10-2017 at 01:19 AM..