Safe Investment – Or A Sign Of The Times?
Is investment in Tesla a bit like cheering on the Emperor in his new clothes?
A quick look at Ford Motor Company’s UK website shows 22 models/vehicles available to choose from, no doubt with a multitude of engine and trim choices, taking the total to well over 200 variations.
Tesla on the other hand shows 4, with perhaps 16-20 variations based on trim and colour [color -sic].
In 2017, Ford remained the top-selling car marque in the UK despite losing market share selling nearly 0.25m vehicles according to SMMT data, Tesla by comparison….well let’s just say it’s a lot less!
Chin up Elon!
Ford Motor Company is respectfully valued at $41.89 Billion…. now for the shock; Tesla is valued at $52.15 Billion that’s $10,260,000,000 more !!
Shocked? I was…… here’s a company whose figure head leader is Tweeting a Cave Diving Rescuer in Thailand as ‘Pedo’, falling further behind with car sales whilst building mini submarines; yet despite Tesla burning through $700 million in cash last quarter, and its cash reserves dipping by 20% it is according to the Dow Jones ‘worth’ Ten Billion $US more than Ford.
This is bit-coining gone mad. And only produces false wealth and big crashes. Because like Bit Coins once someone somewhere decides they are worthless, low-and-behold they are. Just as potentially an under-performing car maker scorching cash to keep its fire alight is too; its all a bit 'Emperor's new clothes'.
EV may well be the future, and investing in the future is good, if it comes off, you can say “I backed this from the beginning – aren’t I clever?”
If it fails only you, your broker and your conscience know about it. The worry here is what if the “naysayers” whom Elon has railed against recently are right?
EV is ‘A’ solution, but it might not be ‘THE’ solution, given its less than wholehearted take up of variations available and so many other possibilities; we are still 22 years away from de-fossilisation of cars in the UK, and 22 years is a long time.
Since 1996 we’ve lost a lot of things we took for granted: The busy signal on phones, Watching god-awful daytime TV on sick/home days [Netflix has killed that], the VCR [ditto], taking holiday pics to ‘Happy Snaps’, Fax Machines, Polaroid “instant” pictures, Floppy Discs, Dial-up internet and even something as simple as Getting lost in a car – ALL GONE, and whilst I’m no Nostradamus, can anyone predict that in 2040 we won’t be saying “anyone remember Elon Musk” in the same way today’s Generation might ask “Who was David Icke”. [Not that I’m comparing the two]
This is not about naysaying, this is about truth-saying Ford make cars people buy lots of. Tesla doesn’t, yet. So why the $10Bn difference?
What will happen to all the investments if the Emperor has very public realisation of nakedness?
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Comments (5)
Well written👍
Thanks - enjoyed writing it
My thoughts exactly.... Nice job!
Thanks Ben
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