
Investors Helped Build Tesla. They Could Undo It, Too - okket
https://www.wsj.com/articles/investors-helped-build-tesla-they-could-undo-it-too-11558721830
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hnjim
I think the hyperbolic language when looking at costs of development should be
avoided. Telsa did not burn through cash that quarter; they invested it and
there has been real progress made with that investment. The automobile
industry is very capital intensive. Would the author say Apple burned through
cash developing a new iPhone or Amazon a new fulfillment center? I do not
consider the floor analysts are setting in the $30-50 range credible. Tesla
has real market advantages and if sold would support a much higher price point
to another auto manufacturer. The big auto companies have had years to
compete, model 3 has real sales volumes relative to it's market segment and
there is still not a single car that offers specifications similar to those
models available for 5 years. The original work on PEM and battery have not
bee replicated and are not trivial.

