Last night was a BIG night for Tesla and its founder, Elon Musk. The company introduced the all-new Model 3 to the world.
While it was patently obvious that these vehicles are not even remotely ready for production, the crowd — mostly full of Tesla loyalists — whooped it up and ate up every single word that Musk had to say. It was as though the soul of Steve Jobs had been resurrected from the dead and put into a new body.
Agent 001 who has a particularly strong barometer on management, and their respective impact, firmly believes that Musk is the only living executive that has the same sort of effect on consumers. And, I hate to admit it, I agree.
But while there's plenty of folks mindlessly planting down $1,000, someone was really thinking about Tesla with a skeptical bend. And, he's raising some very valid points.
...With the Model 3 still fitting five people and a healthy amount of luggage, as well as maintaining essentially the Model S design language with a Model X nose, what's the argument for buying a Model S anymore? Clearly if you need the car before 2017, maybe you would consider one.
But otherwise?...
...The other dimension here is this: There is quite a leap of faith necessary to assume Tesla could make money selling a car of this caliber for $35,000, especially if one further assumes that any other automaker couldn't simply do the same for that price or less. Tesla lost $18,331 per car sold last quarter alone...
So, what are we missing here? Clearly, things are not adding up. So much so the writer who penned the piece — I encourage you to give it a read via the "Read Article" link below — is considering entering a short position on the stock in the next 72 hours.
Are things as rosy as they may seem? What say you, Spies?
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