Tesla Losses Triple - Can The Model X Crossover Save The Company?

Save the company? Their stock went UP $8 per share AFTER the announcement. Market cap is at $28 billion - almost 50% of Ford's market cap after only 12 years in business. Doesn't sound like a company in need of saving.

runninglogan1: Market capitalization reflects what investors (stock buyers) believe, and not a company's fiscal viability. And investors' beliefs could be based on emotional factors instead of financial ones. A company cannot continue to run at a loss indefinitely. They simply run out of cash, can't pay their suppliers, and they lose the ability to make products to sell.

For an example of "oh, those crazy investors," check Blackberry stock, which has almost doubled from its low of $5.88 a couple years ago. During that time in which investors bid the price up, Blackberry continued to lose customer and revenue in a huge way! In other words, Blackberry continued to decline fiscally, while investors bid the price up. Simply put, Blackberry needs a miracle or it will implode within a few years.

As for Tesla, it's not near implosion at this time, but it certainly can't continue running at a loss forever. The investors who are buying or holding believe that this trend won't continue, and that Tesla will eventually become a solid, profitable company. We'll see, in time, what happens.

Speaking of Blackberry: the government agency I work for just replaced my miserable BB Bold 9900 with an iPhone 5S. All BBs are being replaced. We're just one agency, but if the US government is giving up on RIM, what chance do they have?

Tesla will muddle along for a while until it becomes apparent that it is unlikely to ever be a volume auto-maker. Most likely, another company will purchase it outright to get the name.

For conspiracy theorists out there..maybe once Tesla validates its "no dealer" strategy...an established automaker will purchase it and do a "reverse merger" so that automaker can "puke out" its existing dealer base and start selling direct to consumers. My money is on that happening as to the most realistic exit strategy for Tesla.

The Chinese will buy Tesla,

MDarringer, you might be right! Have you ever heard of Cirrus brand aircraft? They have been the most popular aircraft for years with their SR22. They made big news when they announced the Cirrus Jet, now known as the VisionJet SF50 (still pre-production). They were founded and lead for decades by two American brothers. A Chinese, state-owned aviation corporation now owns Cirrus outright. Similar story with Mooney aircraft. And guess who the US owes a substantial amount of the US National Debt? You bet: That huge Chinese bank.

Let the Chinese buy Tesla. There is literally NOTHING in a Tesla that ALL other automakers don't already know.