Tesla Posts Record Loss – And Stock Price Goes Up!

Tesla recently laid off about 9% of its staff  – so the posted losses would have been even higher and in fact, are higher. They have just been flim-flam’d around.

But the fundamental problem with Tesla isn’t that its cars are electric. It is that they are electric high-performance luxury sports sedans. The idiocy – the effrontery – of this ought to be self-evident but like the Emperor’s new clothes, no one wants to talk about it.

Elon can’t tout the economy of his cars – because he touts performance, luxury and style and gadgets. In order to appeal to the guilt-addled virtue signalers who are his audience and want to preen green but not in a Prius. They want something like the Mercedes S-Class they gave up because of its politically incorrect V8 engine. But they’re not giving up the the performance and gadgets and the snob appeal.

Enter Elon.

But if the cars are not economical, then why are they being subsidized? Put more finely, why are taxpayers being mulcted to subsidize the purchase of high-performance luxury-sport sedans, whether electric or otherwise?

The high-end luxury car market is an inherently small market – and more to the point, it’s a market defined by indulgence. Why is indulgence being subsidized by the government? It is not very. . . progressive.

Nor very green, for that matter.

If Elon had focused on that as the main design criteria, his cars would be less flashy, less quick but much more.. .economical. They might even be cost-competitive with $20,000 Honda Civics and people might actually buy them not to virtue signal but because they made economic sense.

But then, the high-end virtue signalers would not have been interested. So the bonfire of cash waxes, grows brighter.

It’s just a shame it’s not Elon’s cash that’s fueling the fire.

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