Friday, March 13, 2015

Is It Over For Tesla in California?



This is a pretty interesting link on Tesla reorganizing its sales force.

Of particular interest is the following paragraph.

“The sales operations have faced challenges in key markets. Sales in California, historically Tesla’s strongest market, fell 27 percent last year to 6,110 cars, according to data from the California New Car Dealers Association. And Tesla recently cut staff in China, where research from JL Warren Capital LLC shows that just 2,500 Model S sedans were registered last year.”

Wow a 27% drop in sales volume in California between 2013 and 2014.   The plug in space is getting crowded and BMW will continue to take customers away from Tesla.

In China the big problem is folks don’t have garages in their homes to recharge the cars.  Tesla is basically a non-starter in most of China and has to do the battery swap idea will have more capital tied up in spare battery packs.   I think Elongate will focus on the grid storage business and will never deliver the People’s Tesla.  He should raise the price of the Model S and the Model X and remain a niche player in the auto industry.  Nice car but a crappy business. 

I do believe the laws of thermodynamics dictate a further drop in Tesla’s share price.  The only good think about Tesla stock soaring and the press thinking Elongate was the next Edison is that this kept Al Gore out of the press for a while.   Al Gore was talking his nonsense at SXSW in Austin, Texas this week.  South By South West is an interactive festival. 




No doubt Big Al did not fly Southwest Airlines to get to Austin even though the airline has 9 flights a day from Reagan National in DC to Austin.  Yes Al Makes his money in DC through his connections and the last thing he wants are any connecting flights.  He just wants to go nonstop in his Lear jet bringing all the cash he creamed from the department of entropy and fools who still believe him.   Elongate had better start selling some Teslas or he too could end up back in coach on a $69 Southwest flight between Oakland and Reno to visit the remains of his giggle factory.  I wonder if Bono told Elonfate to give it up.

8 comments:

  1. Elonfate??. Fait au complete! !!

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  3. Elonflate elongate and soon the air will be let out of their sales oops sails.

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