backtop


Print 43 comment(s) - last by Mint.. on Aug 9 at 5:29 PM

Tesla shares jumped up to $153 in after-hours trading

Tesla Motors saw a successful second quarter with more Model S sales than expected and even surprised Wall Street with an adjusted profit. 

For Q2 2013, Tesla reported a loss of $30.5 million (26 cents a share), which was much narrower than the $105.6 million ($1 a share) loss in the year-ago quarter. The automaker had an adjusted profit of 22 cents, which beat expectations of a non-GAAP loss of 17 cents. In the year-ago quarter, Tesla reported a profit loss of 89 cents. 

Revenue jumped to $405.1 million compared to just $26.7 million in the year-ago quarter. Analysts expected a revenue of $383 million for Q2 2013. 

Helping to boost Q2 figures was better-than-expected Model S sales. For the quarter, Tesla reported 5,150 Model S electric sedan deliveries -- which beat the automaker's expectation of 4,500 deliveries. 

Also notable is that Tesla's production rate increased 25 percent to almost 500 vehicles per week (up from 400 previously). Tesla sold 10,500 Model S sedans in the first six months of 2013 and plans to reach a rate of 40,000 annually by late 2014.

For the third quarter, Tesla expects to deliver slightly over 5,000 Model S' and a total of 21,000 worldwide for the whole year. 

Tesla shares jumped up to $153 in after-hours trading, which is a 14 percent boost from its Wednesday close at $134.  


For Q1 2013, Tesla reported a net income of $11.2 million (a huge increase from an $89.9 million loss in the year-ago quarter). Excluding certain items, Tesla's profit came in at 12 cents a share, which was a boost from a loss of 76 cents a share in Q1 2012. Analysts expected a profit of about 4 cents a share. Revenue also saw a huge year-over-year boost, totaling $562 million (up from $30.2 million in the year-ago quarter). 

Tesla has become quite a hero in the auto industry. In May, Tesla repaid its $465 million loan from the U.S. Department of Energy (DOE) nine years earlier than expected from the original 2022 due date. 

This was mainly due to its decision to issue more stock the week before. Tesla said it wanted to sell about $830 million in shares, and use $450 million in convertible senior notes (which are due in 2018) along with sales of 2.7 million shares (valued at about $229 million at the time) to pay back its federal loan. This is an especially crucial detail in Tesla's history, considering other plug-in hybrid electric automaker Fisker Automotive (which also received a DOE loan) has failed miserably

More recently, Tesla has had a few other victories, such as a win in the battle against auto dealers when a North Carolina House committee denied a bill that would block Tesla from being able to sell its vehicles directly to the public. 

Tesla has also started showing off new tech that could transform the electric auto industry. In June, Tesla unveiled a convenient alternative to waiting for a Model S to charge -- battery swapping. The idea behind battery swapping is to easily open the car chassis to pull the battery out and replace it with a fully charged one. This saves the driver from having to wait for their battery to charge before traveling.

After that, Tesla Chief Technology Officer JB Straubel said that the automaker is working on a charging system that would get drivers out of the Supercharger stations and back on the road with a full charge in just 5 minutes.

Source: The Wall Street Journal



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

OK, so what's next?
By flyingpants1 on 8/7/2013 8:54:50 PM , Rating: 4
What's the next thing the naysayers will say about Tesla?

They won't make a profit on cars?
They won't last without ZEV credits?
They won't ever built a mass-market car?
They'll be out-competed by.. Chevrolet and Nissan?
The batteries won't come down in price?

Watch Tesla fly through all these challenges with flying carpets.




RE: OK, so what's next?
By Brandon Hill (blog) on 8/7/2013 9:38:27 PM , Rating: 5
I'm waiting to see this $35,000, 200-mile third generation Tesla model. That will really send Tesla through the roof.


RE: OK, so what's next?
By CaedenV on 8/7/2013 10:20:18 PM , Rating: 2
Exactly. I would love a reliable cheap bare-bones electric car which should be what 'blue star' is all about. Does not need to be fancy, just needs to be under (preferably well under) the $30,000 mark, not be a hassle to install a high voltage charger at home, and get some 100mi per charge. If they build me a 'cheap' EV commuter car that I can run into the ground for 10 years without issue then I will gladly vote with my dollars!


RE: OK, so what's next?
By flyingpants1 on 8/7/2013 10:26:01 PM , Rating: 2
Won't be that cheap. BlueStar competes with BMW 1 and Audi A3.


RE: OK, so what's next?
By Spuke on 8/8/2013 2:26:44 PM , Rating: 2
I agree. Tesla is firmly seated in the luxury market and I don't blame them cause that's where the money is. I am also waiting to see what they do on the lower end of that market.


RE: OK, so what's next?
By flyingpants1 on 8/7/13, Rating: 0
RE: OK, so what's next?
By Spuke on 8/8/2013 2:29:11 PM , Rating: 3
quote:
How about pairing up with Solar city to offer small, cheap solar systems starting at 2kw to offset power used by charging the Model S?
Solar City's cheapest system (2.35kW) is $13,000 which is WAY overpriced. Buy your own panels and inverter and have an electrician install it for you for MUCH cheaper.


RE: OK, so what's next?
By Mint on 8/8/2013 12:42:39 AM , Rating: 2
For the most part, investors have already priced moderate success of the third-gen car into Tesla's stock price.

It's going to be very challenging, though, to get good margins on a $35k EV in 2016 due to the competition. I also think their pure EV philosophy is going to hurt them. It's one thing to make an 80-mile Leaf cheaper than a 40-mile Volt, but entirely another to make a 200-mile Tesla competitive with a 100-mile EREV. It'll be at least 2020 before 100-miles of battery (25-30kWh) costs as little as a 40hp engine-generator.

So honestly I don't see Tesla doing quite as well as most people do. Maybe $1B/yr in profit 3-5 years from now.


RE: OK, so what's next?
By flyingpants1 on 8/8/13, Rating: 0
RE: OK, so what's next?
By Mint on 8/8/2013 9:35:26 PM , Rating: 2
Pure cult stocks crash very hard.

There's a lot of analysts out there giving TSLA price targets, and the high ones are indeed based on assumptions of third gen success. Even your revenue estimate (which will need similar volume to my profit estimate, and moderate third gen success) is not enough to sustain a $18B market cap. Ford has $120B+ revenue but only 4x the market cap.

The one ace that Tesla has, however, is their supercharging network. It's a lot like Apple building an App store that made the iPhone sell better than than cheaper, superior hardware for a long time.

I'm also making an assumption about them continuing to ignore range extenders. Elon is smart dude and probably won't ignore them forever.


RE: OK, so what's next?
By Cheesew1z69 on 8/9/2013 9:19:44 AM , Rating: 2
They recently installed those chargers a few miles from my house in SWFLA, apparently they are the only ones in the area. I haven't been by to see them yet though.


RE: OK, so what's next?
By purerice on 8/7/2013 10:26:43 PM , Rating: 5
While I am not a naysayer of Tesla, we have to be honest with the numbers.
They still received tens of millions of ZEV credits without which they would have had an operating loss. They still had a total loss for the quarter due to non-recurring items. Last quarter, they had an operating loss and save for non-recurring items would have had a loss overall. It would be irresponsible to leave this out.

The problem Tesla will face is that they are still in the beginning of the introductory phase for new ZEVs. We will ignore the EV-1 and VW's European EVs. ZEVs and P/EVs are still inaccessible to much of the population.

Tesla is now where Apple was with the iPod in 2003. Apple was able to design a product for others to build and carry in inventory and beat out companies that were much stronger at the time such as Microsoft with the Zune. Tesla, currently enjoying 0.1% auto market share in the US, will have to do as Apple did except that Tesla will have to do its own manufacturing and inventory storage while competing against firms that already have capacity and that currently outspend Tesla on R&D by over 20 to 1.

In other terms, I feel deja vu with the AIM alliance and Intel back in the 90s. PowerPC had a headstart over Pentiums, and had a shorter design cycle, but Intel won with sheer force.

Also, Plugin-hybrids may win out in states that get lots of snow. I would hate to be caught in a snowstorm in -5 degree weather with just an electric motor to keep me warm while getting me home. As Tesla does not make ICE vehicles, they may do better for themselves to license some of their technology to companies who will actually buy it, than try to go their own way like Apple did. Elon Musk himself said that they have not had and do not expect significant revenue from licensing.

Tesla expects to sell about 10% more cars/quarter for the next 6 months than the past 6 (10950 vs 9950) and ZEV credits will continue to shrink. Profits will only continue if Tesla can improve operating margins higher than 25%.

Tesla can do it, but as the total market for PEVs is still less than 1% of the overall market, we're still in the top of the first inning.

For those of us who lived through the tech boom, we know that so often the founders of companies, including Elon Musk, rarely survive once a market matures because a different sort of leader becomes necessary. Don't be surprised if within 3 years shareholders will start demanding a new CEO. Then we will see where loyalties lie.


RE: OK, so what's next?
By Samus on 8/8/2013 12:43:24 AM , Rating: 2
I'm fairly certain in a few years Elon will hand the reigns over to Martin Eberhard or JB (who's already the CTO) much like Bill Gates handed his position to Steve Balmer.

Elon Musk doesn't want to run a car company. It's a gateway for him, much like Paypal was his gateway to initial fortune to start Tesla, Solar City, and SpaceX. He has stated numerous times that Tesla is a engineering showcase for battery technology. The developed technology will play a role in space travel, and solar technology from his Solar City venture will maintain those safe and compact cells in space for long duration. SpaceX is the final phase. They have advanced rockets (arguably the most advanced in the world) but before he dies, Elon Musk will likely invent an engine for high speed space travel that uses no solid or liquid fuel, but electricity. ION proof-of-concept has been demonstrated, but like everything, he needs more money. Tesla and SpaceX contracts will generate the engineering revenue necessary to build his next evolutionary product.


RE: OK, so what's next?
By flyingpants1 on 8/8/2013 1:51:00 AM , Rating: 2
That's correct. He's going to sell Tesla Motors so he can concentrate on SpaceX and eventually die on Mars.


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 12:30:31 AM , Rating: 2
quote:
Watch Tesla fly through all these challenges with flying carpets.


Challenges are easier to overcome when you have Government's giving you an unfair leg-up on everyone with cronyism.

So since Tesla is doing so dashingly, it's time to end the subsidies and let them stand on their own. Right?

If you don't agree, you're a hypocrite.


RE: OK, so what's next?
By flyingpants1 on 8/8/2013 2:59:25 AM , Rating: 2
I partially agree, but not for the same reason. I don't particularly have a problem with subsidizing electric cars, or subsidizing oil, or subsidizing anything in general. I know you feel differently. But out of all the things in the world you could subsidize, the acceleration of the development of mainstream electric cars is hardly the worst.

I disagree with the implementation.. As you say, it does give EVs an leg-up. Sort of debatable how unfair it is, since the major car companies and oil industry have also received loans, bailouts, or some other form of subsidies, for decades. But just chopping $7500 off the sticker price of an EV seems like an insult to all other car manufacturers.

In the case of the Model S at least, it's quite literally a tax break for the rich. The $7500 rebate will lower the monthly payment on a $100k car from like.. $1300 to $1200. What the hell? Not even I will defend that. Meanwhile the people who don't MAKE enough to pay $7500/year in tax get shafted. That's the exact wrong way to do it.

As for ending all subsidies right now, I don't think it would kill the company. It would just slow expansion.


RE: OK, so what's next?
By maugrimtr on 8/8/2013 8:33:41 AM , Rating: 1
Tesla is hardly alone on the tax credit front. Fine, cut it. Tesla may make a loss but so will every other company involved in EVs. The rest will be a blitz on reducing costs, increasing prices to maximize profit from possible demand, and we'll see who wins.

What's important is that either way, Tesla has no unfair advantage at this point (it's literally the underdog without a massive ICE business channeling it R&D and survival loans) and it's doing extremely well.


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 7:05:12 PM , Rating: 2
quote:
Tesla has no unfair advantage at this point


But they do. Offering them the kinds of subsidies, ridiculously lax loan terms, and other perks while not other automakers/businesses is by definition "unfair".

This is why Crony Capitalism is unconstitutional. Even though it's uber common. The Government is bestowing favors on one business over others.


RE: OK, so what's next?
By Mint on 8/8/2013 9:59:01 PM , Rating: 1
He said "at this point". There is no gov't loan anymore, and EV credits/subsidies are available to any automaker who wants to produce the product that meets the requirements. That's the opposite of "unfair".


RE: OK, so what's next?
By jimbojimbo on 8/8/2013 1:04:39 PM , Rating: 1
If you're making enough to be paying just $7500 per year in taxes you really can't afford a $100k car.


RE: OK, so what's next?
By flyingpants1 on 8/8/2013 5:45:01 PM , Rating: 2
The.. Nevermind.


RE: OK, so what's next?
By Mint on 8/8/2013 10:21:37 PM , Rating: 2
You're making an assumption that rich people will still buy the car in similar numbers if it cost $7500 more. If that was true, Tesla would jack their prices $7500 today and earn $160M more this year. For that matter, so would BMW, Audi, etc.

The reality is that price matters even to rich people.

Even a luxury maker like Tesla would be in a very different position without EV credits or subidies, and possibly insolvent. Tesla still hasn't broken even over it's lifetime.


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 12:43:05 AM , Rating: 2
And did you even read this?

quote:
For Q2 2013, Tesla reported a loss of $30.5 million (26 cents a share), which was much narrower than the $105.6 million ($1 a share) loss in the year-ago quarter. The automaker had an adjusted profit of 22 cents, which beat expectations of a non-GAAP loss of 17 cents. In the year-ago quarter, Tesla reported a profit loss of 89 cents.


Tell me that without the constant stream of free Green money and tax breaks Tesla receives, that this wouldn't be an absolutely abysmal situation for a business!

They're bleeding millions of dollars, and you're waving the checkered flag already.

Tesla will no doubt go on to do great things, probably. But to me and the "naysayers" (are you 12?) they'll always be the company that was built on taxpayer handouts and cronyism.


RE: OK, so what's next?
By flyingpants1 on 8/8/2013 2:21:58 AM , Rating: 3
Without the constant stream of free Green money, Tesla would not have expanded as quickly, nor spent as much. So the balance sheet may well have looked quite different.

A relatively small loss this quarter is nothing compared to what's coming. Everything is in place and everything actually works; the factory, the car, the charging stations. Constant free PR, and Consumer Reports "Best car ever tested". Demand actually exceeds production, while major competitors sell 100 EVs/year. This is a phenomenal situation for a business, especially a burgeoning car business.

The only thing left to see is if Tesla can hit their goal of 25% margin as expected. Shouldn't be too hard with the recent price increase, the addition of more options, cost-cutting (no more boron aerospace-grade bolts or whatever) and steady gradual increase in efficiency of production.

Many companies are built and maintained with handouts and cronyism. Do you think GM should have been bailed out? To paraphrase you, if you don't, you're a hypocrite. But even if you don't, the point stands.

I will continue to use the word naysayers as I think it's accurate.


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 2:31:48 AM , Rating: 2
quote:
Do you think GM should have been bailed out?


Did you just seriously ask ME that?

I was like the biggest voice here against the bailouts.

quote:
Without the constant stream of free Green money, Tesla would not have expanded as quickly, nor spent as much.


Tesla wouldn't exist without it, frankly.

Musk is a smart man. Just follow the money. ALL of his endeavors since Paypal have been based on cashing in on all the free Green Obama public money. Tesla, massively subsidized. SpaceX, massively subsidized. Solar City? Yup, you guessed it.

Not a single idea or business of his can stand on it's own. I realize it's smart business to have the taxpayers assume all the risk so you don't have to anymore, but I damn sure don't have to support it.


RE: OK, so what's next?
By lelias2k on 8/8/2013 10:16:38 AM , Rating: 2
quote:
ALL of his endeavors since Paypal have been based on cashing in on all the free Green Obama public money.


Reclaimer77, I try to stay out of conversations with you, as we have extremely different views, but seriously?

Tesla was founded in July 2003. The Roadster started production in March 2008. You think all the R&D was done with Obama's money?

Solar City was founded in July 2006, and has been the leading provider of residential solar power since 2007.

Space X was founded in 2002. It won the NASA COTS contract in August 2006.

I'll stop here, as I know that with you there's no point in continuing, but it had to be said.


RE: OK, so what's next?
By Spuke on 8/8/2013 2:37:47 PM , Rating: 1
quote:
I'll stop here, as I know that with you there's no point in continuing, but it had to be said.
I'm trying to figure out your point.


RE: OK, so what's next?
By Mint on 8/8/2013 10:25:51 PM , Rating: 3
quote:
ALL of his endeavors since Paypal have been based on cashing in on all the free Green Obama public money.
Obama came into office in 2008, and all of Elon's ventures started and gained footing well before that.


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 2:46:41 PM , Rating: 2
Okay I retract Obama from my statement. My point was Musk's endeavors are all being propped up and fueled by public money. He's feeding from the fat Green trough, you can't deny.

I don't think the average person is actually aware how much, okay I'll be kind, "assistance" the Government kicks your way if your company is "green".

The Democrats idea of job creation is to spend billions of public dollars, to force the creation of jobs that pay back a penny on each dollar.

I'm glad Musk, an already billionaire, is doing so well thanks in part to our further suffering. Funny how Liberals don't mind the 1% so much, as long as their agenda is furthered.


RE: OK, so what's next?
By Spuke on 8/8/2013 3:18:07 PM , Rating: 2
quote:
Funny how Liberals don't mind the 1% so much, as long as their agenda is furthered.
Most liberal politicians ARE the 1% which is hilarious! They get on TV spewing crap like rich people need to pay their fair share. Well, LOL, YOU are rich too and you'll be paying your "fair share" along with the rest of them. They never include themselves. It's always "them".


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 3:26:51 PM , Rating: 1
Exactly, which is why we call it "Class Warfare". People like me and you see right through it.

What's depressing though, is how effective this scumbag tactic has worked on the average American voter. Obama and his Communist Congress (tm) is the most divisive President ever, literally spreading dishonest class-based vitriol and tearing our society apart, all for a political agenda.

It makes me sick.


RE: OK, so what's next?
By Mint on 8/8/2013 11:11:17 PM , Rating: 2
Oh please. Obama wouldn't have had a chance of a second term if Romney and GOP didn't tar half the country as useless sponges.

The US has "soaked the rich" for all of its sustainable and successful periods in the last century. When it didn't (before the depression and after the Reagan era), private debt exploded in an extremely unsustainable way.

That created an imaginary economy where 15-25% of it was funded by net debt creation, which obviously helps the economy at the time, but it creates a ticking time bomb.

You keep ranting about public debt, but private debt is currently ~40 trillion dollars . It was a hair under three times the GDP just prior to the recession.

It doesn't take a genius to figure out why that happens: The less you tax the rich, the more they save (they're not going to spend/invest even close to all of it), and the more debt is created out of those savings. Some debt is good. What we saw since the 80's is unsustainable and a disaster in the making.

Every business will tell you that their biggest impediment to hiring is demand. Investment in equipment is at an all time high as % of GDP, and it can't go any higher without new demand.

Increased consumption, then, is the ONLY way to increase employment. So how do YOU suggest we get it?


RE: OK, so what's next?
By Reclaimer77 on 8/9/2013 8:33:31 AM , Rating: 2
Not even reading this. It's just more of your absurd false economic nonsense and, apparent Reagan bashing.

To claim that Obama doesn't engage in class based attacks, which is a daily tactic of his, and that it's not divisive - destroys whatever credibility you think you have.

And did you seriously just repeat the Leftist lie that Romney said that about half the country? He was taken completely out of context. It was recorded at a strategy meeting, where he simply said he wasn't going to spend extra time and campaign money on people who would never care about his message.

But yeah, that totally was calling them useless sponges. LOL! Man you're a riot. Do you have MSNBC on your favorites list?

Ah Mint the Marxist, you're an endless source of wonder.


RE: OK, so what's next?
By Dr of crap on 8/9/2013 12:36:13 PM , Rating: 2
Really your pitting the Reps against the Dems ???
REALLY?
They are BOTH as bad as bad can get - and no politician is better than another. Doesn't matter which part he may be from. STOP putting us all in a political party.


RE: OK, so what's next?
By Mint on 8/9/2013 4:44:55 PM , Rating: 2
quote:
Not even reading this.
Of course you won't, because you have zero interest in pursuing the truth.
quote:
apparent Reagan bashing
It's not Reagan bashing. How was he supposed to know what would happen 25 years later?

As far as anyone knew at the time, more private debt was a good thing, allocating capital to those who make most efficient use of it.

Nobody knew that this debt clusterf*** would happen, or that negative interest rates could persist so long without savers wanting to do something with their money. I have the luxury of hindsight.

BTW, speaking of the Reagan admin, look up Bruce Bartlett.


RE: OK, so what's next?
By Mint on 8/9/2013 4:46:54 PM , Rating: 2
quote:
To claim that Obama doesn't engage in class based attacks
When did I say that? You were the one that blamed class warfare solely on him.

All he wanted to do was raise taxes on the highest income earners by a few percent, still leaving them with tax rates far lower than virtually every other developed nation. That's it.

People like you then ruthlessly attacked him as a marxist/socialist/commie, putting him on the defensive to detail why the rich should pay any more.
quote:
But yeah, that totally was calling them useless sponges.
Fine, he didn't say 'useless', but he laid out in detail how they are sponges. There's nothing out of context about that, even if he was talking about voting behaviour (that's actually worse, because he's implying they're sellouts). Even him saying they pay no income tax is insulting when payroll taxes still regressively reduce their paychecks.

It wasn't just that speech. The GOP repeatedly ranted about about unemployment insurance and other entitlements making people not want to work, as if they're all lazy bums choosing to stay jobless and unworthy of assistance in hard times.


RE: OK, so what's next?
By Reclaimer77 on 8/8/2013 3:23:14 PM , Rating: 3
quote:
Reclaimer77, I try to stay out of conversations with you, as we have extremely different views, but seriously?


And why would you avoid conversing with me? I actually have enjoyed our discussion and respect you. You shouldn't just not talk to someone because you know they don't agree with you.


RE: OK, so what's next?
By TSS on 8/8/2013 4:52:49 AM , Rating: 2
http://files.shareholder.com/downloads/ABEA-4CW8X0...

quote:
Net income (loss) (GAAP) (30,502)
Net income (loss) (Non-GAAP) 26,284


So they've actually had a loss of about $30 million. And a actual loss per share of 23 cents. But who needs "Generally Accepted Accounting Principles" anyway. If the US government where to follow them, that $1,3 trillion deficit would hit $6 trillion, ain't nobody got time for that.

I blame it on Mythbusters, Adam Savage to be exact. "I reject reality and substitute my own" seems to have become the motto of a generation....


RE: OK, so what's next?
By SublimeSimplicity on 8/8/2013 9:51:58 AM , Rating: 2
What's happening is that a lot of folks are financing these cars. Which if it was straight financed through the bank, the GAAP number would be the same as the non-GAAP number. The problem is that Elon made the new financing program like a lease, with a guaranteed buyback price after 3 years. So even though Tesla received all the money for the cars they moved in their bank account, according to GAAP they can only account for a small percentage of it as income and the rest as a liability.

In a year or so, when they are claiming revenue for those "leases" as revenue for that quarter (which they'll be required to under GAAP) people will say they are cooking the books too.

If you want to view Tesla as a company on the brink of bankruptcy, the non-GAAP numbers illustrate their current health much better than the GAAP numbers do.


RE: OK, so what's next?
By Mint on 8/8/2013 11:53:06 PM , Rating: 2
Thanks for the explanation.

I assume the non-GAAP accounting still records the buyback as a liability, right? And the difference is just the monthly payments being lumped together?


RE: OK, so what's next?
By SublimeSimplicity on 8/9/2013 8:48:46 AM , Rating: 2
My understanding is they don't account for the lease liability at all in the non-GAAP numbers. Which in a way is a little concerning. They are guaranteeing that the value of a base Model S (200m EPA range) will be $35k (50% of the $70k price) in 3 years.

The problem with that is that they also projected that they'll produce a 200mi range car in about 3 years for $35k (without considering an EV tax incentive).

If they deliver on the 3rd gen, I don't see how the base Model S will hold its guaranteed value. If they don't deliver on the 3rd gen, they don't have a promising future.


RE: OK, so what's next?
By Mint on 8/9/2013 5:29:06 PM , Rating: 2
That'll be a very happy problem to have.

Think about it: The Model S is already widely seen as a superior car to the S-class, A8, etc. and those cars are in turn superior enough to $35k cars that they still retain 50% of their value. If Bluestar is as good as you're suggesting, then it'll destroy all $35k cars in its class.

They'll be happy to lose $5k in value on, say, 20k base Model S leases if they wind up in that situation. In reality, I think Bluestar is going to be smaller and less luxurious.


"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki