Tesla Posts Record Loss – And Stock Price Goes Up!

Guest Post by Eric Peters

Elon Musk’s Tesla (TSLA) just posted its biggest loss to date – $430 million in three months – but Tesla stock prices climbed 10 percent after the announcement.

What to make of this?

It’s like being in a nursing home, beside the bed of your blind, dementia-addled 94-year-old grandmother and the doctor just told you she probably hasn’t got much time left – but you decide to go out and buy her a new car.

With the difference being that you’re buying grandma the car.

In Tesla’s case, it’s taxpayers who are buying the cars – for the affluent virtue-signalers who “buy” them at massively subsidized but massively high prices.

Even so, Elon still can’t make a buck on these things.

Not that it matters.

The conga line of suckers seems endless. In part because of Elon’s Rasputin-like ability to bedazzle the media, which reports every promise with the gush of a 16-year-old girl effusing over her prom date and never reports that her date raped her after the prom.

Mum is always the word when it comes to Elon.

For example – and most recently – the media gushed over the arrival (sort of) of the “affordable” Model 3, sticker price only $35,000! Which is only $15,000 more than a well-equipped Honda Civic sedan, which does the job of getting from A to B vastly better, if the metrics are cheaper and easier and more conveniently.

But the media has not told you that the “affordable” $35,000 Model 3 isn’t available. Only the $40,000 Model 3 currently is.

And it’s only twice as expensive as a well-equipped Honda Civic. But what’s $20,000 between friends, eh?

Keep in mind, too, that both the $35,000 Model 3 and the $40,000 Model 3 are really more like $50,000 Model 3s – if you take away the subsidies and price them such as to account for their true cost to manufacture and sell at a profit – as opposed to giving each away at a loss, as Elon has been doing for the past 15 years.

1 2 3
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.