Comments on: Counterparties: Tesla stock goes vroom! http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: rb6 http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-47000 Mon, 13 May 2013 19:44:42 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-47000 We bought a Tesla after driving the same Volvo station wagon for 21 years. My husband decided to go all in for something a little different. What can I say – other than, I can attest to having thought a lot about the “five hour trip to Grandma’s,” which is actually just about how far away my mother lives. I make that trip once a year, and I will probably use my other car to do it. So a Tesla definitely has that downside, but we love it for commuting and for weekend trips. You have to plan, and right now, the most reliable charging option is a KOA campground (there not being otherwise a lot of crossover between the KOA and Tesla demographic) and other assorted oddities. To me, the main obstacle isn’t really the range, so much as, the thing costs a lot of money. It’s definitely still a luxury purchase and Tesla’s real challenge is to be able to produce a less expensive vehicle.

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By: TFF http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46984 Sun, 12 May 2013 11:41:45 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46984 Knowing nothing, I would bet that battery technology has not yet matured. I know some who will argue that an EV is already cost-competitive with gas powered vehicles (lower maintenance, cheaper operation), and expect that will only improve with time.

The Volt is a compromise, as are hybrids. Unlikely to realize the full potential of EVs until the technology gets to the point that you do not need to install a dual power system in every vehicle. Could argue that we’re already there for daily use?

As for driving five hours to Grandma, how often do you do that? Drive to your nearest rental place, pick up a car with a longer range, and continue on with your trip. It is foolish to purchase a vehicle on the basis of occasional needs — like those who buy a large SUV for that family trip once a month, but otherwise commute solo.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46972 Sat, 11 May 2013 01:53:00 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46972 I bet KenG_CA is correct. I bet they will reduce battery costs… I bet the X will be a great looking car. Even if they achieve your prediction of selling a $40,000 car that just gets them to parity of the Volt which is far better suited to American drivers who might like to go to the beach, or the ski mountain, or to visit grandma all of which might be just out of battery range.

Remember that the batteries are best on day 1… the best batteries in the world won’t work as well in year 3 or year 5 (when the car still won’t be paid off.)

TSLA makes by far the coolest most powerful, best in every way electric car… and they will sell several of them when gas hits $10.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46966 Fri, 10 May 2013 15:40:17 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46966 y2k, they are making money, and I have no doubt they will grow their earnings. However, you know very well that valuation often gets ahead of earnings (see AMZN). Also, their sales for this year should be almost $2 billion.

As for their technology not scaling, I think it definitely will. The improvement in overall quality and value from their first car (the Roadster) to the second (the S) was incredible, while the price dropped 40% (not adjusted for inflation) for the same range battery. They sell more of the S in about five weeks than all of the Roadsters they sold in about three years. The S is better than the Roadster in every criteria except one (0-60 time is not quite as fast), and the upcoming X should maintain that trend.

The biggest obstacle to delivering a car that is affordable for more people is the cost of the battery, and while that technology does not obey Moore’s law and double every three years, it still grows faster than inflation. I have no doubt they will be able to offer $40,000 electric vehicles that will compete with cars in that price range before the end of this decade, if not sooner.

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By: dWj http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46965 Fri, 10 May 2013 14:52:25 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46965 It appears, from the chart, that “hedge” funds also lost more money than the stock/bond index in 2008, which would undermine the best argument in defense of hedge funds’ lower returns.

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By: TheGreenMiles http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46964 Fri, 10 May 2013 14:34:20 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46964 Selling them a little short (see what I did there) to say they’re just doing well because they’re environmentally friendly. They make wicked awesome cars & wouldn’t have gotten top honors from CR if it was just a marketing scheme.

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By: REDruin http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46963 Fri, 10 May 2013 14:26:08 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46963 Tom,

Every manufacturer is issued a number of credits per vehicle they make. Cars that are bio-efficient do not use these credits, and they are then used to offset vehicles that do not meet standards, such as trucks and vans and SUVs.

Since all of Tesla’s cars meet the standards, they have excess credits. They sell these credits to other car companies, so those companies can continue to make gas guzzlers and oil belchers. This does raise their cost of production some, but is cheaper then trying to redesign their vehicles to be as environmentally efficient as needed, so it continues.

==RED

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By: MitchellW http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46962 Fri, 10 May 2013 13:40:27 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46962 Per the linked LA Times article “Tesla’s earnings were enhanced by sales of environmental credits to other automakers; these credits are awarded to clean vehicle makers as part of California’s efforts to reduce air pollution. Sales of the Zero Emission Vehicle credits generated $68 million in revenue for Tesla in the quarter.”

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By: TomLindmark http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46957 Fri, 10 May 2013 04:40:16 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46957 Could you elaborate on how exactly Tesla is going to sell RIN credits, unless they are now manufacturing ethanol.

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By: Frwip http://blogs.reuters.com/felix-salmon/2013/05/09/counterparties-tesla-stock-goes-vroom/comment-page-1/#comment-46956 Fri, 10 May 2013 03:55:58 +0000 http://blogs.reuters.com/felix-salmon/?p=21672#comment-46956 ” Politico is testing a pay wall. ”

Am I the only one to find that funny?

Politico isn’t the WSJ.

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